TSXV:HWK.A - Post by User
Post by
UptownGirlon Dec 20, 2013 7:33am
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Post# 22025666
Hawk Highlights
Hawk Highlights
After Hawk Exploration (v.hwk.a) reported its Q3 results, it further shored up its stature as a greatly undervalued Canadian junior oil producer.
Once again for anyone unfamiliar with the company, Hawk reported 9 month cash flow of 0.14 / share, trading well under 3 times annualized cash flow at its current share price of 0.36. Other quarterly highlights included:
* record quarterly cash flow of $2.1 million (0.06 / share), up 47% from 2012 's cash flow of $1.4 mil.
* 9 mth cash flow of 0.14 / share, compared to 0.12 / share for 2012 (0.16 / share for entire 2012)
* 9 mth eps of 0.01 / share
* quarterly production up 17% from 2012 to 613 boe
* 9 mth average production of 621 boe, up 29% from 482 boe in 2012
* very low debt:cash flow ratio of 0.9:1
* estimated 2014 production average of 800 boe, with an exit production of 950 boe
* approximately 30% of float of 35 million shares is tightly held by insiders
* offers potential as a takeover candidate or to be taken private, given this perpetual undervaluation
Given the above attractive metrics and management's outlook for 2014, Hawk Exploration (hwk.a) is significantly undervalued at current prices relative to its peers; and provides significant upside potential going forward as the market becomes more attuned to this undervalued junior oil producer.