2024-02-23 14:45:49 ET
Summary
- HME’s low costs and unique economics enable it to generate huge free cash flow.
- The company generates an 18% free cash flow yield on its current stock price.
- We believe there's potentially much more upside to Hemisphere and it's one of our favorite names.
By: Jon Costello, HFI Research Energy Income
Note: Dollar references in this article are to Canadian dollars unless specified otherwise.
Hemisphere Energy ( HME:CA ) is a small gem among Canadian E&Ps. As one of the few remaining junior Canadian oil producers, it generates unusually high cash returns for shareholders. Its superior economics stem from its use of polymer floods as an enhanced recovery technique. These polymer floods increase the amount of oil recovered for the least amount of capital. They reduce ongoing operating and capital costs and maximize free cash flow generation....
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For further details see:
Hemisphere Energy: One Of Our Favorite Names In The E&P Space