HFI Research Top Pick: Hemisphere Energy (HMENF)
Posted: Fri Feb 23, 2024 9:07 am
Note from HFI received this morning
By: Jon Costello
Note: Dollar references in this article are to Canadian dollars unless specified otherwise.
Hemisphere Energy (HME:CA) is a small gem among Canadian E&P. As one of the few remaining junior Canadian oil producers, it generates unusually high cash returns for shareholders. Its superior economics stem from its use of polymer floods as an enhanced recovery technique. These polymer floods increase the amount of oil recovered for the least amount of capital. They reduce ongoing operating and capital costs and maximize free cash flow generation.
With its stock currently at depressed levels, HME’s high free cash flow yield and free cash flow growth at higher oil prices make it one of the most attractive long-term buys in our entire energy sector coverage universe.
Send me an email if you'd like to read HFI's full report on Hemisphere: dmsteffens@comcast.net
Hemisphere Energy is one of the Canadian Juniors in our High Yield Income Portfolio.
By: Jon Costello
Note: Dollar references in this article are to Canadian dollars unless specified otherwise.
Hemisphere Energy (HME:CA) is a small gem among Canadian E&P. As one of the few remaining junior Canadian oil producers, it generates unusually high cash returns for shareholders. Its superior economics stem from its use of polymer floods as an enhanced recovery technique. These polymer floods increase the amount of oil recovered for the least amount of capital. They reduce ongoing operating and capital costs and maximize free cash flow generation.
With its stock currently at depressed levels, HME’s high free cash flow yield and free cash flow growth at higher oil prices make it one of the most attractive long-term buys in our entire energy sector coverage universe.
Send me an email if you'd like to read HFI's full report on Hemisphere: dmsteffens@comcast.net
Hemisphere Energy is one of the Canadian Juniors in our High Yield Income Portfolio.