2024-05-11 02:42:06 ET
Summary
- Headwater Exploration is an extremely profitable Canadian heavy oil producer.
- Management plans to increase capital expenditures and adjusted funds flow from operations, indicating a potential for faster growth later in the fiscal year.
- The company's strong management team, debt-free balance sheet, and increasing production make the dividend increasingly safe.
- The maintenance of a large cash balance is probably essential to the heavy oil business in conjunction with the debt free balance sheet.
- The exploration success indicates a lot of potential ways for the company to grow.
Headwater Exploration (CDDRF) is a Clearwater (pure play) Canadian heavy oil producer (that reports in Canadian dollars). Management is expanding into other areas as the production grows. But the clear strategy is very profitable heavy oil production. The growth story appears to be improving as management raised the capital expenditures and the guidance for adjusted funds flow from operations as shown below :
Headwater Exploration 2024 Guidance (Headwater Exploration May 2024, Corporate Presentation)
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For further details see:
Headwater Exploration: Cash Flow Guidance Change Bodes Well For Future Growth