Post by
mrmomo on May 12, 2023 10:31am
Excellent Q1 .........
From the folks at HammerHead. Not too bad or shabby for the first financial results AFTER going public via IPO. These results are more less what i anticipated and are completely inline with the company's objectives and the everyone's expectations. The only black stain in those numbers, if i have to be picky, is that one time charge of $100M for the listing fees. Which more or less messed up a rather fantastic quarter. But that charge was to be expected. If it wasn't for that, these guys would be drenched in profits. In the future and past this quarter, it looks like these guys will be pulling in anywhere from $50M to $100M per quarter, depending on where oil prices land.
With a mix of 50/50 of liquids to gas, which is quite rare in the Canadian oil patch, and a guidance of 40k boepd, these guys will do very well even if oil & Ng stay where they are. HH is one of the lowest cost operators out there in the most proficient, lucrative in-demand land base in the Montney. As i don't expect they will get boughtout anytime soon, i do think they will want to get A LOT bigger by expanding either through selective acquisitions OR by M&A. So don't be surprised if they are on the lookout to scope a few targets in the next 12 to 18 months, and get very agressive with their plans to expand ops beyonf what they already have.
I STILL think the stock is VERY cheap here AND should be trading at the very least 50% higher with oil trading in the mid 70's. One of the very few highly leveraged value plays for anyone who wants some decent exposure to the Canadian oil patch....
GLTA
Comment by
EstevanOutsider on Jul 20, 2023 4:40pm
All the Pipestone bros here in Hammerhead. I managed to add as well this week picking up 5000 shares. Might buy more if they fall further. The insider buying is very foretellnig here and the volume has been extremely low with a wide bid-ask spread. The story has many catalysts like Pipestone in regards to M&A. Have to think it is a top 3 M&A play (Pipestone, Hammerhead, Crew) in my view.