Hemisphere Energy (HMENF) Update - Nov 13

Hemisphere Energy (HMENF) Update - Nov 13

Postby dan_s » Sat Nov 13, 2021 2:32 pm

Hemisphere Energy (HME.V and HMENF in the US) will be announcing Q3 results next week and Don Simmons will be coming to Houston on November 30 to host our luncheons. I have gone over my forecast/valuation model and I've tweaked a few numbers, but my valuation remains $2.00US for HMENF.

You can view the forecast model directly from the EPG website. This one should be a double for us within six months.

Hemisphere has completed three new horizontal wells that will provide a nice production increase from Q3 to Q4.

Early in 2022 the Atlee Buffalo polymer flood should generate steady production growth in the G-Pool.

FCF in Q4 and Q1 2022 should payoff most of Hemisphere's outstanding debt.

Additional wells in G-Pool next summer and fall, fully funded by operating cash flow, should ramp up production to over 3,000 BOPD by this time next year.

If you live in the Houston area I recommend you attend our November 30th luncheon and you can invite a friend to join you for lunch for free. Getting better attendance will help me get more companies to host our luncheons.
Dan Steffens
Energy Prospectus Group
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Re: Hemisphere Energy (HMENF) Update - Nov 13

Postby CreativeEquity » Sun Nov 21, 2021 5:42 pm

Good Q3 Results:
https://www.hemisphereenergy.ca/news/thu-11182021-1200-hemisphere-energy-reports-2021-third-quarter-financial-and-operating-results
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Re: Hemisphere Energy (HMENF) Update - Nov 13

Postby sl6886 » Sun Nov 21, 2021 10:11 pm

I didn’t think they were that good.

Got better pricing for the commodity than Dan forecasted but production was lower than estimated and a fairly big hit on hedges. So the things they could control were slightly less than expected

Also, in the discussion section Don Simmons lists out the priorities and lists “growth or acquisition” ahead of dividends - it’s quite out of touch, in my opinion. He said the same thing in an interview with a Canadian reporter.

Finally, since paying off debt is supposedly their highest priority, how much have they paid off in debt in this quarter and is it listed somewhere explicitly and im just missing it? I think I’ve backed into the number but I’m not sure
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Re: Hemisphere Energy (HMENF) Update - Nov 13

Postby Fraser921 » Sun Nov 21, 2021 11:39 pm

Debt

Lowered net debt to $18.2 million in q3
It was 18.5 m in q 2 so .3m in q3 essentially breakeven

Sales volumes were down but offset with higher prices
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Re: Hemisphere Energy (HMENF) Update - Nov 13

Postby CreativeEquity » Mon Nov 22, 2021 9:48 am

For me the big win was the sharp increase in production in early Nov indicating the polymer project is working as planned. I think that is why the market responded favorably.
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