Hemisphere Energy (HMENF) Q2 Results - Aug 18

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Hemisphere Energy (HMENF) Q2 Results - Aug 18

Post by dan_s »

Don Simmons has told me that they will release Q2 results on Thursday, August 18.

My forecast model shows Adjusted Net Income (excluding non-cash mark-to-market gain on their hedges) to be $13.3Cdn million ($0.13Cdn per share).
> Q2 Production of ~2,900 Boepd (>99% heavy oil), up from 2,648 Boepd in Q1.
> Revenues (net of cash settlements on their hedges) of $27.5Cdn million, up from $19.4Cdn million in Q1.
> The Company's realized oil price should be approximately $105Cdn per bbl.
> Very little oil is hedged after August.
> Key Stat: Operating cash flow of $17.8Cdn million ($0.17/share), up from $11.0Cdn million in Q1. < This compares to the full year Capex budget of $16Cdn million.

Production guidance should show steady production growth to an exit rate approaching 3,500 Boepd. (Last official guidance was 3,000 Boepd average with an exit rate of ~3,300 Boepd).

I would also like to hear that a couple more horizontal wells will be added to the Q4 drilling program in order to take advantage of higher oil prices this winter and raise the PV10 Net Asset Value of their proved reserves at 12-31-2022. PV10 NAV for P1 reserves was $2.45Cdn/share on 12-31-2021 based on $70WTI oil price, which is more than today's share price. The successful polymer flood and more producing wells this year should add a lot more P1 reserves.

My current valuation is $4.81Cdn and $3.85US per share.

Hemisphere is almost debt free, it pays a dividend and has a stock repurchase plan underway.
Dan Steffens
Energy Prospectus Group
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