Hemisphere Energy Corp. - HME-V

Company Website 

Company Highlights: 

  • Hemisphere has two heavy oil projects in SE Alberta (Atlee Buffalo and Jenner) that are on waterflood and are now being polymer flooded.
  • Production in Q2/22 was 2,883 boe/d (99% heavy oil) up 61% from 1,786 boe/d in Q2/21. Cash flow came in at $15M up from $5M in Q2/21 or $0.14 versus $0.05 per share in Q2/21.
  • HME is now debt free and has initiated a variable dividend that currently provides $0.025 quarterly ($0.10 annually) providing a dividend yield of 7.7%.
  • The company has a strong balance sheet to make acquisitions and add new core areas. We see them doing so in 2023.
  • HME has 103M shares outstanding and a market capitalization of over $130M. Insiders are material shareholders.
  • We see Hemisphere generating $0.50 in cash flow in 2022. Our Bull Market Peak Target for HME is $10.00 per share.
Don Simmons
Don Simmons
President & CEO
Mr. Simmons has extensive experience in petroleum geology and a proven track record of discovering oil and gas in Western Canada and internationally. He became President and Chief Executive Officer in February 2008. Prior to joining Hemisphere, Mr. Simmons was a Geologist at Sebring Energy, private oil and gas company, and before that he spent five years with EnCana (now Ovintiv) working on various projects in southeast Alberta and Ecuador. Mr. Simmons holds a Bachelor of Science degree in Geological Sciences from Queen's University and is a member of the Association of Professional Engineers and Geoscientists of Alberta.