Hemisphere Energy (HMENF) Q4 Results - April 20
Posted: Thu Apr 20, 2023 11:51 am
Vancouver, British Columbia--(Newsfile Corp. - April 20, 2023) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) ("Hemisphere" or the "Company") is pleased to provide its financial and operating results for the fourth quarter and year ended December 31, 2022.
2022 Highlights
Increased annual production to 2,828 boe/d (99% heavy oil), a 55% increase over 2021. < Compares to my forecast of 2,825 boe/d
Achieved record annual revenue of $96.7 million, a 124% increase over 2021.
Realized record annual adjusted funds flow from operations ("AFF") of $46.7 million, a 152% increase over 2021. < Beat my forecast of $44.7 million.
Executed a successful $18.3 million capital expenditure program that included implementing a new polymer flood at the F pool, expanding and upgrading facilities, purchasing land and seismic, and drilling eight development, two (one net) exploration, and three re-entry wells.
Generated $28.4 million of free funds flow ("FFF") after all capital expenditures, a 337% increase over the previous year.
Decreased year-end net debt by 95% to just under $1.0 million. < Now that Hemisphere is virtually debt free, they should be able to increase their dividends.
Implemented Hemisphere's first ever quarterly dividend in June, and dispersed total returns of $7.7 million to shareholders during the year at $0.025/share.
Re-purchased and cancelled 2.3 million shares, returning $3.4 million to shareholders.
Increased Proved Developed Producing (PDP) NPV10 BT reserve value to $228 million and volumes to 8.2 MMboe (99.7% heavy crude oil). < Over $2.20Cdn PV10 Net Asset Value per share and the stock is trading today at $1.34Cdn. There is nothing to justify this stock trading below the PV10 of just their PDP reserves.
Increased Proved (1P) NPV10 BT reserve value to $309 million and volumes to 12.1 MMboe (99.7% heavy crude oil).
Increased Proved plus Probable (2P) NPV10 BT reserve value to $395 million and volumes to 16.0 MMboe (99.3% heavy oil).
I will be posting my updated forecast/valuation model for Hemisphere to the EPG website later today.
2022 Highlights
Increased annual production to 2,828 boe/d (99% heavy oil), a 55% increase over 2021. < Compares to my forecast of 2,825 boe/d
Achieved record annual revenue of $96.7 million, a 124% increase over 2021.
Realized record annual adjusted funds flow from operations ("AFF") of $46.7 million, a 152% increase over 2021. < Beat my forecast of $44.7 million.
Executed a successful $18.3 million capital expenditure program that included implementing a new polymer flood at the F pool, expanding and upgrading facilities, purchasing land and seismic, and drilling eight development, two (one net) exploration, and three re-entry wells.
Generated $28.4 million of free funds flow ("FFF") after all capital expenditures, a 337% increase over the previous year.
Decreased year-end net debt by 95% to just under $1.0 million. < Now that Hemisphere is virtually debt free, they should be able to increase their dividends.
Implemented Hemisphere's first ever quarterly dividend in June, and dispersed total returns of $7.7 million to shareholders during the year at $0.025/share.
Re-purchased and cancelled 2.3 million shares, returning $3.4 million to shareholders.
Increased Proved Developed Producing (PDP) NPV10 BT reserve value to $228 million and volumes to 8.2 MMboe (99.7% heavy crude oil). < Over $2.20Cdn PV10 Net Asset Value per share and the stock is trading today at $1.34Cdn. There is nothing to justify this stock trading below the PV10 of just their PDP reserves.
Increased Proved (1P) NPV10 BT reserve value to $309 million and volumes to 12.1 MMboe (99.7% heavy crude oil).
Increased Proved plus Probable (2P) NPV10 BT reserve value to $395 million and volumes to 16.0 MMboe (99.3% heavy oil).
I will be posting my updated forecast/valuation model for Hemisphere to the EPG website later today.