2024-07-03 06:36:37 ET
Summary
- Temporary headwinds like lowered local gas demand and FX depreciation resulted in a lower dividend, which the market overreacted to.
- Alvopetro has industry-leading netback margins at 87%.
- Production level can reverse to mean once working interest redetermination is effective and local demand returns to normal.
- Alvopetro has many growth projects available to it.
Alvopetro Energy ( ALVOF , ALV:CA ) is a Canadian-based oil and gas exploration and production small cap operating in Brazil, with 95% of its revenue derived from natural gas. Some temporary external headwinds have halved the share price over the last year, which is likely a market overreaction due to the dividend decrease combined with the shares' low liquidity. At a current share price, the 0.09US$ quarterly dividend offers a 9.56% dividend yield, but can potentially return to 16.3% when production recovers....
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Alvopetro Energy: Value, Growth And 9.55% Yield Amid Temporarily Lowered Gas Demand