Hemisphere Energy – Recapping A Solid Year Of Oil Production Growth, Increasing Free Cash Flows, Paying Off Debt, Initiating A Dividend, And Share Buybacks
Don Simmons, President and CEO of Hemisphere Energy (TSX.V:HME – OTCQB:HMENF), joins us to review the key Company milestones and work programs in 2022, and the business strategy moving into 2023. Overall, 2022 was a year of production growth, increased free cash flows, paying off debt, implementing a dividend, and buying back shares of the stock using the NCIB facility.
One of the key transitions this year was the successful implementation of the polymer flood process at the Atlee Buffalo G Pool, leading to an increase in production output. This gave the Company confidence in implementing the same polymer flood process at the F Pool in August, and so the expectations are for the flow rates to gradually improve ramping up into mid 2023. There are still more wells to be drilled around both the G Pool and F Pool, and based on their seismic surveys the projections are for both zones to have both consistency and future growth potential.
In addition to the ways the company has been returning value to shareholders with the dividend, share buy backs, and paying down the debt, we move the discussion into the area of potential acquisitions that the company could make to build further value in the future. Don outlines the kind of projects that their team is reviewing that would make sense as acquisition targets and how they view making sure it would be an accretive transaction.
if you have any follow up questions for Don on Hemisphere Energy, then please email us at either Fleck@kereport.com or Shad@kereport.com.
Click here to visit the Hemisphere Energy website and read over the recent news.
Happy Birthday Buzz. Cheers!
We just did a little work on US Thanksgiving, because our Canadian friends in the north were still hard at it today. They already celebrated their Thanksgiving back in October. 🙂
I’d rather be hard in it than hard at it! LOL! DT 😉
BUZZ, When I,m 64, The Beatles https://www.youtube.com/watch?v=OTgbWmaxu5s
Thx,
Feeling the deja vu !!
Ex i hope your watching because my call weeks ago for 1.04/1.02 us dollar is fast approaching.
Also wti is on target sideways for few more months then drop off a cliff into summer bottom. This call was also made at the peak of investor frenzy and attraction towards the oil..
Hi Glenfidish. Yes, the US Dollar has been a very key asset class and currency to follow this year, and the recent pullback into the mid 105’s has been quite a helpful tailwind for the PM sector, most commodities (except oil, which has continued to correct lately), and the general equity markets.
We did see a relief rally off the 105 level back up higher last week, where it did bounce up to 107.80. We had mentioned a bounce in the greenback was overdue, and many were watching for the 109 level to come back into play as resistance, but it rolled back over before reaching 108. Now the dollar is back down at 105.72, so we’ll see which way things break soon, if it gets down lower towards that 102 level, or makes another go at 109+ again.
Really, I’d have preferred to have seen it move a little higher for longer than where it got up to last week, before rolling back over. If it had continued bullishly into this week and made it up to that 109 resistance, and then peaked and rolled over, it likely would make a more sustained move lower. The concern now would be if does break lower soon down to 102, that it could run into selling exhaustion, then base, bottom, and blast back higher again in early 2023 and be a continued headwind on the markets next year.
I’d prefer not to see that scenario play out, and would rather see a more medium to longer-term rollover in the buck, so falling down and bottoming too quickly now, may provide a window of too much buying pressure coming in to support it and give currency traders too much upside fuel heading into early next year.
We are close to the seasonably favorable Q1 Run for the PMs, which typically starts in late December coming out of tax loss selling, blasting into January, February, and sometimes into early March. This has been a solid trade in many prior years, and is one of my favorite position trades each season. However, not every year plays out the same. Still, it would be best to see the greenback correcting during that period (instead of bottoming soon in December and then surging higher in Q1), but we’ll see how things go. Best to have trading strategy for either scenario.
Ever Upward!
The U.S. Shale Boom Is Officially Over
By Tsvetana Paraskova – Oilprice.com – Nov 24, 2022
– The days of the U.S. shale boom may be over, with production rising at a much slower rate than it did before the 2020 crash and showing no signs of ramping up.
– A combination of supply chain constraints, inflation, and the new shareholder-focused strategy of shale companies have transformed how the industry operates.
– With shale production facing headwinds, OPEC has regained its position as the world’s swing producer.
https://oilprice.com/Energy/Energy-General/The-US-Shale-Boom-Is-Officially-Over.html
How Crypto Goes To Zero
The Economist – Wed, November 23, 2022
f everyone stopped using it. That, in five words, is how crypto would go to zero. Still, the journey is more interesting than the destination. The death of ftx, an exchange declared bankrupt on November 11th after a spectacular blow-up, will encourage some people to turn their attention elsewhere. What would have to happen for everyone to give up?
“An answer requires a sense of how the industry works. At crypto’s base are blockchains, like Bitcoin and Ethereum, which record transactions verified by computers, a process incentivised by the issuance of new tokens. The Ethereum blockchain validates lines of code, which has made it possible for people to issue their own tokens or build applications. These include stablecoins, which are pegged to real-world currencies, and tokens like Uniswap, which manage decentralised-finance (DeFi) protocols. Major chains and a handful of Ethereum-based tokens, like stablecoins, account for about 90% of cryptocurrency value. Big businesses have been built on top of this world, including exchanges, investment funds and lending platforms.”
“To take out crypto entirely would require killing the underlying blockchain layers. They could either give way first, kicking the stool out from underneath everything else. Or the industry could unravel from the top down, layer by layer like a knitted scarf.”
“Knocking the stool out is extraordinarily hard, and the current high value of bitcoin and ether makes it even harder. To attack a blockchain and shut it down requires gaining 51% control of the computational power or value of tokens staked to verify transactions.”
“Unravelling is therefore the more conceivable path. The events of this year have revealed just how prone to this sort of thing crypto is. The implosion that seems to have set the chaos in motion is that of Terra-Luna, a decentralised stablecoin system, worth around $40bn at its peak. It collapsed in May, wiping $200bn off the market capitalisation of crypto. That led a few weeks later to the bankruptcy of several lending platforms and a hedge fund, events which wiped another $200bn off the market cap. The margin calls these platforms faced seem to have imperilled Alameda, the trading firm owned by Sam Bankman-Fried, and led to the decision to use ftx customer funds to plug the gap. When ftx failed, it wiped another $200bn off crypto’s market cap. Now other exchanges and lending platforms looks to be in trouble…”
https://www.economist.com/finance-and-economics/2022/11/23/how-crypto-goes-to-zero
I can see you have been hard at it, Happy wife, Happy life! DT😉
🙂
Sam Bankman-Fried Said He Would Give Away Billions. Broken Promises Are All That’s Left.
By Rachel Louise Ensign and Ben Cohen – Wall Street Journal – Nov 24, 2022
“The FTX founder pledged to donate billions. His firm’s swift collapse wiped out his wealth and ambitious philanthropic endeavors.”
Who works on Thanksgiving? Everybody take the day off, because today I turn 64