First stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/dennis-da-silva-s-top-picks~2675451
Headwater Exploration (HWX TSX) Last purchased in April at $6.44.
Headwater is a mid-cap oil producer focused on one of the hottest plays in Canada, the Clearwater formation. It is budgeted to grow production by 40 per cent in 2023 and 25 per cent in 2024, while providing a six per cent yield, expanding inventory (10+ years) and maintaining $100 million cash (no debt) for land acquisitions. This is a very rare combination that should deliver a total return of 30 per cent. Roughly 25 per cent of the land base is developed and unallocated cash could build to 20-25 per cent of current market capitalization over the next couple of years.
TOP PICK
Headwater Exploration Inc. (HWX-T)
26/04/2023
His theme today is leverage, nice yield, and ability to grow cash. Growing 40% production this year, 25% next year. $100M of cash, which could grow to being 20-25% of market cap. Clean balance sheet. Can tuck in land acquisitions to build inventory. In one of the hottest plays in Canada. Very strong free cashflow. Yield is 6.39%, which could grow easily to 8-9%.
(Analysts’ price target is $9.11)
Oil / Gas
Denis da Silva
$6.05
Owned