Journey Energy (JOY.CA and JRNGF) Update - May 15

[dan_s]

Journey Energy is a Canadian Junior that has been on my Watch List for awhile.

This morning HFI Research sent out a report on JOY, concluding that the stock is oversold. Due to cost overruns on some power projects last year, the Company did get into a bit of a financial bind, but those issues have been resolved. Q1 results were good and Journey is now free cash flow positive.

HFI's conclusion: "With downside risk limited and upside potential intact, we view Journey shares as a particularly attractive buy at their current price." HFI does not give a specific price target, but their comments sound to me like they think it could be a double for us if WTI averages $80US/bbl.

Last week Journey agreed to host a webinar for us on June 11.

Journey Energy Inc. is involved in the exploration, development, and production of crude oil and natural gas in the province of Alberta, Canada. The company was formerly known as Sword Energy Inc. and changed its name to Journey Energy Inc. in July 2012. Journey Energy Inc. was founded in 2007 and is headquartered in Calgary, Canada.

Highlights for the first quarter and year to date are as follows:

Generated sales volumes of 11,906 boe/d in the first quarter (46% crude oil; 10% NGL's; 44% natural gas).

Realized Adjusted Funds Flow of $17.7 million or $0.29 per basic share and $0.27 per diluted share.

Closed a $38 million convertible debenture financing on March 20, 2024. The proceeds of the financing were partially utilized to retire the remaining $11 million of vendor-take-back financing and to accelerate a $12.1 million payment to AIMCo. The remainder will be used to expand Journey's 2024 capital program from $41 million to $51 million, as discussed in the March 28, 2024 press release. Guidance for 2024 remains unchanged since incremental volumes are phased in a way that will impact the exit rate but not annual averages.

Produced 6,968 megawatt hours of electricity at Journey's power generation facility in Countess, Alberta at an average price of $117.69/MWH.

Continued with the construction of the Gilby power generation asset. The generators have been moved into the newly constructed building.

On May 7, 2024 Journey announced its participation in a 128 section Joint Venture land block with Spartan Delta Corp. to mutually pursue the development of the west shale basin Duvernay. The initial working interest within the block is 37.5% Journey and 62.5% Spartan Delta Corp. The partners currently control 94 sections within the block. Two wells are planned for later in 2024. Journey's share of these expenditures will be funded through a combination of internally generated cash flows and proceeds from the recent closing of convertible debentures.

[Fraser921]

I like these guys. They are building a power plant and they will use their ng to power it

[mitchl]

I like these guys too. Looking forward to the webinar.

[JBtheBrit]

Good stuff Dan - I have had a holding in Journey for a while. Like Alex Verge (CEO) - the webinar should be interesting/helpful.