Over the next few days I will be updating all of the forecast/valuation models for the 12 companies in our High Yield Income Portfolio. I am updating them primarily for my new oil & gas price deck. My oil price forecast is starting to look too conservative already.
Hemisphere Energy is a pure play on Canadian Heavy Oil. It has a pristine balance sheet, has ~10% annual production growth locked in at Atlee Buffalo and has a significant new project area in Southern Saskatchewan that could double the Company's production within a few years.
Hemisphere pays a nice dividend already and the recent spike in oil prices should give them enough free cash flow to raise the dividend.
Due to higher oil prices, my valuation of HMENF increases by $0.35 to $2.40US per share.
At the time of this post HMENF was trading at $1.26US. < 2024 operating cash flow should be approximately $0.36US per share with over $0.20US of free cash flow per share.
Hemisphere Energy (HMENF) Valuation Update - Apr 10
Hemisphere Energy (HMENF) Valuation Update - Apr 10
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group