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Headwater Exploration Inc T.HWX

Alternate Symbol(s):  CDDRF

Headwater Exploration Inc. is a Canadian resource company engaged in the exploration for and development and production of petroleum and natural gas in Canada. The Company has heavy oil production and reserves in the Clearwater/Falher formations in the Marten Hills, Greater Nipisi and Greater Peavine areas of Alberta and natural gas production and reserves in the McCully field near Sussex, New Brunswick. The McCully Field is located approximately 10 kilometers (kms) northeast of Sussex, New Brunswick in the farming community of Penobsquis. It owns and operates a natural gas processing plant, with a processing capacity of approximately 35 mmscfpd, and a 50 km transmission line connected to the Maritimes and Northeast pipeline. The McCully Field is a winter producing asset connected to the northeast United States gas market. The Company drilled its first stratigraphic test and single-leg horizontal well, prospective for heavy oil, in Handel, Saskatchewan.


TSX:HWX - Post by User

Comment by riskion Mar 01, 2023 11:56am
151 Views
Post# 35312669

RE:RE:Nuttall

RE:RE:Nuttall I should add that TVE is still a great investment. It is one of the best available in CAD O&G with a bit of a hangover on the share price right now due to all the selling from the Delta acquisition. That is going to linger for another 9-12 months. 

But comparing it to HWX is unfair. These two companies are not in the same league. HWX is the best growth opportunity in North America if you believe oil stays here or higher over the next two years. 


riski wrote: I am seeing the opposite. I am getting cumulative per share growth through 2024 as follows:

TVE 24%
HWX 45%

Through 2026:
TVE 46%
HWX 94%

This is at strip prices and conservative growth metrics, so higher WTI would juice both estimates, but at $75, I would expect HWX to be about $12 in 2026 and TVE to be about $6.50. 

Remember that HWX is a pure clearwater play, so they have more leverage to the great clearwater economics than TVE since TVE has to commit capex to drilling and maintaining less prolific/profitable acreages. 

HWX share count is a fraction of TVE share count. HWX has cash in the bank with no debt and TVE will be servicing a large debt load for a number of years still. 

GoJerez2 wrote:

https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2571506

still loves the play and sticking to his thesis. I agree with him. If you look at the math.... TVE going to $8 is easier and quicker than HWX going to $12..... 100% increase. TVE has longer running room with much more land and plays. Kinda makes sense 

HWX is much cleaner and better company but the running room may be a concern after 2023.... 
they'll have lots of cash to buy good assets though





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