CA - Journey Energy: Upside Potential In 2024

2024-03-20 08:00:00 ET

Summary

• Journey Energy Inc. is a Canadian oil company with operations in Alberta, producing about 12,400 BOEPD.
• The company has increased production and reserves through acquisitions, but estimates for 2024 have been lowered to 11,500-12,000 BOEPD.
• Journey is expanding into the power generation business, with plans to increase its electrical generating capacity and capitalize on rising power demand in Alberta.

Introduction

This is our first write-up for this tiny Canadian waterflooder. Journey Energy Inc. ( JRNGF , JOY:CA ) has oilfield operations in Alberta province, from which it pumps about 12,400 BOEPD, with 55% liquids. It also has an emerging footprint in the power generation business, with several generating plants. In 2022, Journey completed an acquisition that significantly boosted its oil output. Through 2023, the company has increased production and reserves organically and through acquisitions, from ~8,000 BOEPD in 2021 to ~12,595 BOEPD. Much of the boost is attributed to the acquisition....

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