InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQX Exchange under the symbol IPOOF.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Hans Baldau, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Transaction highlights. The acquisition appears to offer significant synergies and benefits to InPlay’s operations. InPlay’s production is expected to more than double to 18,750 boe/d from previous guidance of 8,650-9,150. Additionally, on a per share basis, 2025 adjusted funds flow (AFF) is expected to increase to C$204 million from previous guidance of C$69-75 million. Furthermore, the nature of the assets acquired is expected to enhance operational efficiencies to InPlay’s existing Pembina asset base by increasing the scale and contributing to lower decline, higher oil-weighting, and less capital-intensive production.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Expands Exclusive License Rights to Asia and Africa
OKLAHOMA CITY, OKLAHOMA – FEBRUARY 20, 2025 – Comstock Inc. (NYSE American: LODE) today announced that its subsidiary, Comstock Fuels Corporation (“Comstock Fuels”), executed an amendment to its exclusive license agreement with RenFuel K2B AB (“RenFuel”) for use of RenFuel’s patented catalytic esterification process to refine Comstock Fuels’ proprietary BioleumTM biointermediates.
The amendment expanded the territory from North America, Central America, South America, Australia, New Zealand, and Vietnam to include all of Asia and Africa to facilitate ongoing project development by licensees of Comstock Fuels’ broader lignocellulosic biomass refining process.
Johan Löchen, RenFuel’s chief executive officer, stated, “Comstock and its licensees are making great and rapid progress developing sites for construction of demonstration and commercial scale facilities based on Comstock’s Bioleum refining process, including RenFuel’s patent catalytic esterification process. Our partnership with Comstock has been productive in many ways and we are pleased with the rapid progress and the mutual benefits of expanding the scope of our collaboration and our license.”
David Winsness, Comstock Fuels’ president, added, “Our patented and patent-pending technologies integrate proven systems from multiple industries in new ways to create a new class of petroleum refinery – a Bioleum Refinery, to refine abundant woody biomass into renewable fuels at market-leading yields and profitability. The RenFuel process is a key enabling step in that integration and we continue to be excited to work with the RenFuel team on our combined commercialization efforts.”
About RenFuel K2B AB
RenFuel innovates technologies that contribute to decarbonization and circularity by effectively turning under-utilized biomass waste and residues into renewable fuels and materials. To learn more, please visit www.renfuel.se.
About Comstock Fuels Corporation
Comstock Fuels Corporation (“Comstock Fuels”) delivers advanced lignocellulosic biomass refining solutions that set industry benchmarks for production of cellulosic ethanol, gasoline, renewable diesel, sustainable aviation fuel (“SAF”), and other renewable Bioleum™ fuels, with extremely low carbon intensity scores of 15 and market-leading yields of up to 140 gallons per dry metric ton of feedstock (on a gasoline gallon equivalent basis, or “GGE”), depending on feedstock, site conditions, and other process parameters. Comstock Fuels additionally holds the exclusive rights to intellectual properties developed by Hexas Biomass Inc. (“Hexas”) for production of purpose grown energy crops in liquid fuels applications with proven yields exceeding 25 to 30 dry metric tons per acre per year. The combination of Comstock Fuels’ high yield Bioleum refining platform and Hexas’ high yield energy crops allows for the production of enough feedstock to produce upwards of 100 barrels of fuel per acre per year, effectively transforming marginal agricultural lands with regenerative practices into perpetual “drop-in sedimentary oilfields” with the potential to dramatically boost regional energy security and rural economies.
Comstock Fuels plans to contribute to domestic energy dominance by directly building, owning, and operating a network of Bioleum Refineries in the U.S. to produce about 200 million barrels of renewable fuel per year by 2035, starting with its planned first 400,000 barrel per year commercial demonstration facility in Oklahoma. Comstock Fuels also licenses its advanced feedstock and refining solutions to third parties for additional production in the U.S. and global markets, including several recently announced and other pending projects. To learn more, please visit www.comstockfuels.com.
About Comstock Inc.
Comstock Inc. (NYSE: LODE) innovates and commercializes technologies that are deployable across entire industries to contribute to energy abundance by efficiently extracting and converting under-utilized natural resources, such as waste and other forms of woody biomass into renewable fuels, and end-of-life electronics into recovered electrification metals. Comstock’s innovations group is also developing and using artificial intelligence technologies for advanced materials development and mineral discovery for sustainable mining. To learn more, please visit www.comstock.inc.
Comstock Social Media Policy
Comstock has used, and intends to continue using, its investor relations link and main website at www.comstock.inc in addition to its Twitter, LinkedIn and YouTube accounts, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Contacts
For investor inquiries: RB Milestone Group LLC Tel (203) 487-2759 ir@comstockinc.com
This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future market conditions; future explorations or acquisitions; future changes in our research, development and exploration activities; future financial, natural, and social gains; future prices and sales of, and demand for, our products and services; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land and asset sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; business opportunities, growth rates, future working capital, needs, revenues, variable costs, throughput rates, operating expenses, debt levels, cash flows, margins, taxes and earnings. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments, and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious and other metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; challenges to, or potential inability to, achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology and efficacy, quantum computing and generative artificial intelligence supported advanced materials development, development of cellulosic technology in bio-fuels and related material production; commercialization of cellulosic technology in bio-fuels and generative artificial intelligence development services; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows, or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund, or any other issuer.
Finalizes Commercial Licensing Agreement in Pakistan for SAF and Other Renewable Fuels
OKLAHOMA CITY, OKLAHOMA – FEBRUARY 13, 2025 – Comstock Inc. (NYSE: LODE) today announced the execution of a definitive master license agreement between Comstock Fuels Corporation (“Comstock Fuels”) and Gresham’s Eastern (Pvt) Ltd (“Gresham’s”), a leading sustainable energy engineering, equipment and construction company based in Pakistan, under which Comstock Fuels granted Gresham’s a license to develop and manage facilities based on Comstock Fuels’ advanced lignocellulosic biomass refining processes in Pakistan.
Gresham’s plans to initially develop a commercial demonstration facility in Lahore, Pakistan, capable of initially processing 75,000 metric tons of biomass annually, marking Comstock Fuels’ fifth licensed refinery project under contract. The Lahore facility will be designed to generate the prerequisite operational and economic data for scaling up to a 1,000,000 metric tons per year (“MTPY”) commercial facility, aligning with the rapidly growing global market demand for increased production of sustainable aviation fuel (“SAF”). Gresham’s ultimately plans to develop several similar facilities to use abundant, locally available agricultural and forestry residuals, as well as sustainably grown energy crops with the potential to unlock billions of dollars in exports while positioning Gresham’s as a leading contributor toward Pakistan’s commitment to producing 60% renewable energy by 2030.
Mian Suhail Husain, CEO of Gresham’s, commented, “We are focused on deploying truly scalable and sustainable energy solutions in Pakistan. We are on the doorstep of a globally significant opportunity where our combined competencies can generate significant economic growth for our nation and communities alike.”
Pakistan’s abundant biomass resources provide an ideal foundation for developing a robust renewable fuel production ecosystem that prioritizes fulfilling regional demand while targeting export markets across the Middle East and North Africa (“MENA”). Pakistan produces about 100 million metric tons of agricultural residue biomass per year, or enough to produce about 14 billion gallons of renewable fuels per year at Comstock Fuels’ proven yields of up to 140 gallons per dry metric ton on a gasoline gallon equivalent basis (“GGE”), depending on the feedstock, site conditions, and other process parameters.
“Gresham’s is well positioned to make a transformative contribution to Pakistan’s economic development and sustainable energy objectives,” stated David Winsness, President of Comstock Fuels. “This partnership showcases the quality and speed of global adoption of our industry-leading solution, and we’re excited to get started in Lahore and well beyond.”
Under the agreement, Gresham’s will lead the development, financing, construction, and management of facilities based on Comstock Fuels’ proprietary Bioleum refining technologies. Each Bioleum Refinery will operate under a site-specific license agreement to ensure compliance with Comstock Fuels’ performance and quality standards. Comstock Fuels will contribute site specific technology rights in exchange for a 20% equity stake in each Bioleum Refinery, a 6% royalty fee on each refinery’s product revenues, and a 6% engineering fee equal to total capital and construction costs. The agreement additionally granted Gresham’s the exclusive right to market projects based on Comstock Fuels’ technologies in Pakistan, subject to satisfaction of a series of commercialization milestones, including financing, construction, and commissioning of Gresham’s planned Lahore facility and multiple subsequent commercial facilities.
About Gresham’s Eastern (Pvt) Ltd.
For the better part of six decades, Gresham’s name has been synonymous with Quality and Innovation. Today, Pakistan-based Gresham’s is a premier project developer, engineering, equipment fabricator and construction company focused on deploying technology-leading, sustainable energy solutions and initiatives across Pakistan. To learn more, visit www.gel1947.com.
About Comstock Fuels Corporation
Comstock Fuels Corporation (“Comstock Fuels”) delivers advanced lignocellulosic biomass refining solutions that set industry benchmarks for production of cellulosic ethanol, gasoline, renewable diesel, sustainable aviation fuel (“SAF”), and other renewable Bioleum™ fuels, with extremely low carbon intensity scores of 15 and market-leading yields of up to 140 gallons per dry metric ton of feedstock (on a gasoline gallon equivalent basis, or “GGE”), depending on feedstock, site conditions, and other process parameters. Comstock Fuels additionally holds the exclusive rights to intellectual properties developed by Hexas Biomass Inc. (“Hexas”) for production of purpose grown energy crops in liquid fuels applications with proven yields exceeding 25 to 30 dry metric tons per acre per year. The combination of Comstock Fuels’ high yield Bioleum refining platform and Hexas’ high yield energy crops allows for the production of enough feedstock to produce upwards of 100 barrels of fuel per acre per year, effectively transforming marginal agricultural lands with regenerative practices into perpetual “drop-in sedimentary oilfields” with the potential to dramatically boost regional energy security and rural economies.
Comstock Fuels plans to contribute to domestic energy dominance by directly building, owning, and operating a network of Bioleum Refineries in the U.S. to produce about 200 million barrels of renewable fuel per year by 2035, starting with its planned first 400,000 barrel per year commercial demonstration facility in Oklahoma. Comstock Fuels also licenses its advanced feedstock and refining solutions to third parties for additional production in the U.S. and global markets, including several recently announced and other pending projects. To learn more, please visit www.comstockfuels.com.
About Comstock Inc.
Comstock Inc. (NYSE: LODE) innovates and commercializes technologies that are deployable across entire industries to contribute to energy abundance by efficiently extracting and converting under-utilized natural resources, such as waste and other forms of woody biomass into renewable fuels, and end-of-life electronics into recovered electrification metals. Comstock’s innovations group is also developing and using artificial intelligence technologies for advanced materials development and mineral discovery for sustainable mining. To learn more, please visit www.comstock.inc.
Comstock Social Media Policy
Comstock Inc. has used, and intends to continue using, its investor relations link and main website at www.comstock.inc in addition to its Twitter, LinkedIn and YouTube accounts, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Contacts
For investor inquiries: RB Milestone Group LLC Tel (203) 487-2759 ir@comstockinc.com
For media inquiries or questions: Colby Korsun Comstock Fuels Corporation fuels@comstockinc.com
Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future market conditions; future explorations or acquisitions; future changes in our research, development and exploration activities; future financial, natural, and social gains; future prices and sales of, and demand for, our products and services; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land and asset sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; business opportunities, growth rates, future working capital, needs, revenues, variable costs, throughput rates, operating expenses, debt levels, cash flows, margins, taxes and earnings. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments, and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious and other metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; challenges to, or potential inability to, achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology and efficacy, quantum computing and generative artificial intelligence supported advanced materials development, development of cellulosic technology in bio-fuels and related material production; commercialization of cellulosic technology in bio-fuels and generative artificial intelligence development services; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows, or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund, or any other issuer.
InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQX Exchange under the symbol IPOOF.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Hans Baldau, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Updated 2024 guidance. Inplay Oil modestly lowered its 2024 production guidance to 8,700 to 8,750 boe/d from 8,700 to 9,000. Additionally, the company lowered its expectations for crude oil prices and slightly raised expense guidance. Due to these changes, the adjusted funds flow (AFF) is expected to range from C$68 million to C$70 million compared to prior guidance of C$70 million to C$73 million. Capital expenditures for 2024 are expected to come in at around C$63 million compared to original expectations of C$64-67 million. The savings are mainly due to cost efficiencies from the Pembina Cardium Unit #7 (PCU7) drilling program.
Outlook for 2025. Management has planned a capital-efficient program in 2025. The company expects to increase production by 2%, in the range of 8,650 to 9,150 boe/d, compared to 2024, while spending around C$20 million less. The total capital budget for 2025 is C$41 million to C$44 million and will primarily be directed toward the Pembina Cardium Unit #7 property. Management expects adjusted funds flow (AFF) to benefit from lower capital expenditures and anticipates 2025 AFF to be between C$69 million and C$75 million.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Key Points: – TPG Rise Climate will acquire Altus Power for $5.00 per share in a $2.2 billion deal, taking the company private to accelerate clean energy expansion. – Altus Power’s Board of Directors unanimously approved the transaction, which represents a 66% premium to its October 2024 stock price and is expected to close in Q2 2025. – This acquisition aligns with TPG Rise Climate’s strategy to scale climate solutions, leveraging its expertise in clean energy infrastructure to support Altus Power’s growth.
Altus Power, the largest owner of commercial-scale solar in the U.S., has announced that it has entered into a definitive agreement to be acquired by TPG through its TPG Rise Climate Transition Infrastructure strategy. Under the terms of the agreement, TPG will acquire Altus at $5.00 per share, valuing the company at approximately $2.2 billion, including outstanding debt. Upon completion of the transaction, Altus Power will become a privately held company.
Strategic Rationale and Market Impact
On October 15, 2024, Altus Power initiated a formal review of strategic alternatives. Today’s purchase price represents a 66% premium to Altus’ closing price on that date. The company expects this acquisition to bolster its ability to provide greater value to both commercial and Community Solar customers while expanding access to clean electric power.
“This transaction represents a pivotal moment for Altus Power,” said Gregg Felton, CEO of Altus Power. “We are incredibly excited to partner with TPG Rise Climate to continue to build our position as the leading commercial-scale provider of clean electric power to businesses and households from coast to coast. TPG Rise Climate’s deep expertise in the clean energy sector, investment-oriented mindset, and value-driven approach to infrastructure development align perfectly with our vision. This partnership strengthens our ability to serve both our Community Solar and commercial clients with clean electric power at a time when demand for power is expected to grow substantially. As a private company, Altus Power will be better positioned for continued long-term growth, which we believe will allow us to scale our operations, drive innovation, and enhance the value we deliver to our customers. Together with TPG Rise Climate, we believe we are poised to accelerate clean energy adoption and ensure more businesses and communities have access to the power they need for a sustainable future.”
Transaction Details
The Board of Directors of Altus has unanimously approved the transaction and recommends that Altus stockholders vote to adopt the merger agreement.
The deal is contingent upon majority approval by Class A stockholders.
The transaction is expected to close in Q2 2025.
About TPG Rise Climate
TPG Rise Climate is the dedicated climate investing platform of TPG, a leading global alternative asset management firm. With dedicated pools of capital across private equity, transition infrastructure, and the Global South, TPG Rise Climate focuses on climate-related investments that benefit from the expertise of TPG’s investment professionals and its global network of executives, advisors, and corporate partners. As part of TPG’s $25 billion global impact investing platform, TPG Rise Climate invests broadly in the climate sector, emphasizing clean electrons, clean molecules and materials, and negative emissions.
About Altus Power
Altus Power is a leader in commercial-scale solar energy, providing clean, renewable energy solutions for businesses and communities across the U.S. The company is currently traded on the New York Stock Exchange under the ticker symbol AMPS.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Hans Baldau, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Outlook for 2025. Hemisphere Energy expects 2025 capital expenditures of approximately C$17 million which are expected to support ~15% growth in annual average production to 3,900 barrels of oil equivalent per day (boe/d) compared to 2024. Expenditures will be funded entirely from adjusted funds flow. Most of the capital will be allocated to drilling, optimization, and facility work, with approximately 10% allotted to exploration and land acquisition. Most planned expenditures are scheduled for the third quarter of 2025, providing the company with the flexibility to adjust plans based on changes in commodity prices.
Updating estimates. We have increased our 2024 adjusted funds flow (AFF) and EPS estimates to C$45.4 million and $0.32, respectively, from C$43.5 million and $0.31 to reflect modestly higher operating earnings. AFF and EPS in the fourth quarter are estimated to be C$10.0 million and $0.06, respectively. We have also increased our 2025 AFF and EPS estimates to C$50.6 million and $0.37, respectively, from C$38.0 million and $0.27 to reflect higher average annual production of 3,900 boe/d compared to our prior estimate of 3,625 boe/d. Additionally, we increased our WTI crude oil price assumption to US$72.00 per barrel versus our prior estimate of US$70.00.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Vancouver, British Columbia–(Newsfile Corp. – January 29, 2025) – Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (“Hemisphere” or the “Company”) is pleased to provide a corporate update, announce the declaration of a quarterly dividend payment to shareholders, and deliver guidance for 2025.
Corporate Update
In 2024, Hemisphere achieved annual production growth of 10%, executed a $22 million capital expenditure program, and increased its positive year-end working capital position. The Company also returned over $0.22/share ($21.2 million) to shareholders in the form of dividends ($15.7 million) and share buybacks ($5.5 million), which represents an annualized 11.9% yield to shareholders based on Hemisphere’s market capitalization at December 31, 2024.
Hemisphere’s 2024 capital expenditure program grew production, added required infrastructure, and commenced testing a new resource play with an enhanced oil recovery (“EOR”) polymer pilot project. These investments were funded entirely by cash flow from the Company’s long-life reserve base and ultra-low production decline rates in the Atlee Buffalo oil assets, and have set up Hemisphere for continued growth in 2025.
Based on field estimates, production over the past two months (December 1, 2024 – January 27, 2025) has averaged approximately 3,800 boe/d (99% heavy oil) as new Atlee Buffalo wells were brought online through the fourth quarter of last year. With the addition of a new treater late in the quarter and upcoming injector conversions, these and other wells are expected to continue to be optimized during the first quarter of 2025 in Hemisphere’s flagship EOR polymer flood projects.
Balance sheet strength in 2024 allowed Hemisphere to invest in its pilot EOR project in the Marsden area of western Saskatchewan. The Company drilled 5 wells (3 production wells and 2 injection wells) and built facilities required to produce oil and inject polymer back into a known accumulation of oil that had been previously produced with vertical wells and abandoned, with the plans of rebuilding reservoir pressure and increasing the recovery factor of the oil-in-place from the pool. First injection commenced late in the third quarter of 2024 and Hemisphere is anticipating to see potential EOR response in mid-to-late 2025.
Quarterly Dividend
Hemisphere is pleased to announce that its Board of Directors has approved a quarterly cash dividend of $0.025 per common share in accordance with the Company’s dividend policy. The dividend will be paid on February 26, 2025 to shareholders of record as of the close of business on February 12, 2025. The dividend is designated as an eligible dividend for income tax purposes.
2025 Corporate Guidance
Hemisphere’s Board of Directors has approved a 2025 capital expenditure program of approximately $17 million, which is planned to be entirely funded by Hemisphere’s estimated 2025 adjusted funds flow1 (“AFF”) of $51 million and is anticipated to provide 15% annual production growth. The majority of capital will be allocated to drilling, optimization, and facility work, with approximately 10% allotted to exploration and land acquisition. Most of the planned capital expenditures are scheduled for the third quarter of 2025, providing Hemisphere with the flexibility to adjust plans subject to the commodity price environment.
After capital expenditures and asset retirement obligations (“ARO”), 2025 free funds flow1 (“FFF”) is estimated to be $34 million, of which approximately 30% is budgeted to be paid in quarterly base dividends as shown in the table below. The balance of cash will be used for discretionary purposes, which may include potential acceleration of other development or exploration projects, acquisitions, and additional return of capital to shareholders through Hemisphere’s normal course issuer bid (“NCIB”) program and/or special dividends. In 2024, two special dividends totaling $0.06/share ($5.7 million) were paid to shareholders in addition to Hemisphere’s base quarterly dividends of $0.10/share ($10 million), and share buybacks amounted to $0.06/share ($5.5 million), bringing total shareholder returns to $0.22/share ($21.2 million).
Management believes that the 2025 development plan provides stable production growth and consistent shareholder returns, with significant flexibility built in to allow for necessary adjustments based on changing political and commodity environments.
Highlights and assumptions of Hemisphere’s guidance at US$75/bbl WTI are as follows:
Average annual production of 3,900 boe/d (99% heavy oil), a 15% increase as compared to 2024
Average WTI price of US$75/bbl, with sensitivities shown at US$65/bbl and US$85/bbl
WCS differential of US$14.00/bbl and quality adjustment of $7.00/bbl
CAD/US FX of 1.43
Operating and transportation costs of $15.25/boe
Royalties and GORRs on gross revenue of 21% at US$75/bbl WTI, 19% at US$65/bbl WTI, and 23% at US$85/bbl WTI
Net G&A of $3.66/boe
Tax Costs of $8.10/boe at US$75/bbl WTI, $5.64/boe at US$65/bbl WTI, and $10.37/boe at US$85/bbl WTI
Notes: (1) AFF, Capital Expenditures, and FFF (including per share amounts) are non-IFRS financial measures that are forward looking and do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. AFF per basic share and FFF per basic share are non-IFRS financial ratios that are forward looking and do not have any standardized meaning under IFRS and therefore may not be comparable to similar ratios presented by other entities and include non-IFRS financial measure components of AFF and FFF. See “Non-IFRS Measures“. (2) See assumptions noted above within “2025 Corporate Guidance”. (3) Using a 2025 weighted average of 97.4 million basic shares issued and outstanding. (4) The amounts above do not include potential future purchases through the Company’s NCIB program or other discretionary uses of available funds.
About Hemisphere Energy Corporation
Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, ultra-low decline conventional heavy oil assets through polymer flood enhanced recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME” and on the OTCQX Venture Marketplace under the symbol “HMENF”.
For further information, please visit the Company’s website at www.hemisphereenergy.ca to view its corporate presentation or contact:
Don Simmons, President & Chief Executive Officer Telephone: (604) 685-9255 Email: info@hemisphereenergy.ca
Certain statements included in this news release constitute forward-looking statements or forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as anticipate, continue, estimate, expect, forecast, may, will, project, could, plan, intend, should, believe, outlook, potential, target, and similar words suggesting future events or future performance. In particular, but without limiting the generality of the foregoing, this news release includes forward-looking statements regarding the record date and payment date for Hemisphere’s quarterly dividend; expectations for the continued optimization of certain wells during the first quarter of 2025 in Hemisphere’s flagship EOR polymer flood projects; expectations on timing for potential EOR responses for activities in the Marsden area of western Saskatchewan; that Hemisphere’s 2025 capital budget is planned to be entirely funded by Hemisphere’s estimated 2025 AFF and is anticipated to provide 15% annual production growth, including that the majority of capital will be allocated to drilling, optimization, and facility work, with approximately 10% allotted to exploration and land acquisition, as well as expectations for the timing of such expenditures; Hemisphere’s anticipation that approximately 30% of estimated $34 million in free funds flow will be paid in quarterly dividends with the balance of cash being used for discretionary purposes; the expected manner in which the Company’s 2025 capital budget will be spent, including the timing of such expenditures and any discretionary amounts, which may include potential acceleration of other development or exploration projects, acquisitions, and return of capital to shareholders through Hemisphere’s NCIB program and/or dividends, and the anticipated effects thereof, including as set forth under “2025 Corporate Guidance” and the Company’s dividend policy and the other matters and guidance set forth under “2025 Corporate Guidance”; and management’s belief that the 2025 development plan provides stable production growth and consistent shareholder returns, with significant flexibility built in to allow for necessary adjustments based on changing political and commodity environments.
Forward‐looking statements are based on a number of material factors, expectations or assumptions of Hemisphere which have been used to develop such statements and information, but which may prove to be incorrect. Although Hemisphere believes that the expectations reflected in such forward‐looking statements or information are reasonable, undue reliance should not be placed on forward‐looking statements because Hemisphere can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein (including the assumptions noted in respect of “2025 Corporate Guidance”), assumptions have been made regarding, among other things: the current and go-forward oil price environment; that Hemisphere will continue to conduct its operations in a manner consistent with past operations; continued trade-agreements remain in place and no trade related disputes will develop, including tariffs on Canadian energy production to the United States will be applicable, that results from drilling and development activities are consistent with past operations; the quality of the reservoirs in which Hemisphere operates and continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; inflationary pressure and related costs; that the Company’s dividend policy will remain the same and the Company will continue to be able to declare dividends; the accuracy of the estimates of Hemisphere’s reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Hemisphere’s current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Hemisphere operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Hemisphere to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Hemisphere has an interest in to operate the field in a safe, efficient and effective manner; the ability of Hemisphere to obtain financing on acceptable terms; field production rates and decline rates; the accuracy of the Company’s reservoir modelling; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Hemisphere to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Hemisphere operates; and the ability of Hemisphere to successfully market its oil and natural gas products.
The forward‐looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward‐looking statements including, without limitation: changes in commodity prices; regulatory risks, including penalties or other remedial actions, the ability of the Company to maintain legal title to its properties; changes in the demand for or supply of Hemisphere’s products, the early stage of development of some of the evaluated areas and zones; unanticipated operating results or production declines; results of Hemisphere’s waterflood operations; the ability of Hemisphere to, pending future events, return capital to shareholders as a result of any required third party approvals; changes in budgets; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Hemisphere or by third party operators of Hemisphere’s properties, increased debt levels or debt service requirements; inaccurate estimation of Hemisphere’s oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time‐to‐time in Hemisphere’s public disclosure documents, (including, without limitation, those risks identified in this news release and in Hemisphere’s most recent Annual Information Form).
The forward‐looking statements contained in this news release speak only as of the date of this news release, and Hemisphere does not assume any obligation to publicly update or revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Forward Looking Financial Information
This news release may contain future oriented financial information (“FOFI”) within the meaning of applicable securities laws, including with respect to the Company’s anticipated 2025 Free Funds Flow, Capital Expenditures and Adjusted Funds Flow (including where applicable per share amounts). The FOFI has been prepared by management to provide an outlook of the Company’s activities and results. The FOFI has been prepared based on a number of assumptions including the assumptions discussed and disclosed above, including in relation to “2025 Corporate Guidance” above and “Forward Looking Statements” above and that the Company is cash taxable in 2025. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits the Company will derive therefrom. The Company has included the FOFI in order to provide readers with a more complete perspective on the Company’s future operations and such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any FOFI statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-IFRS and Other Measures
This news release contains terms that are non-IFRS measures or ratios that are forward looking and commonly used in the oil and gas industry which are not defined by or calculated in accordance with International Financial Reporting Standards (“IFRS”), such as: (i) adjusted funds flow (ii) adjusted funds flow per basic share; (iii) capital expenditures; (iv) free funds flow; and (v) free funds flow per basic share. These terms should not be considered an alternative to, or more meaningful than the comparable IFRS measures (as determined in accordance with IFRS) which in the case of funds flow is cash provided by operating activities, in the case of adjusted funds flow (and adjusted funds flow per share) is cash provided by operating activities and in the case of capital expenditures is cash flow used in investing activities. There is no IFRS measure that is reasonably comparable to free funds flow. These measures are commonly used in the oil and gas industry and by Hemisphere to provide shareholders and potential investors with additional information regarding: (i) in the case of adjusted funds flow and free funds flow, the Company’s ability to generate the funds necessary to support future growth through capital investment and to repay any debt.
Hemisphere’s determination of these measures may not be comparable to that reported by other companies. Adjusted funds flow is calculated as cash generated by operating activities, before changes in non-cash working capital and adjusted for any decommissioning expenditures; Adjusted funds flow per share is calculated using the outstanding basic shares of the company as footnoted in the 2024 Corporate Guidance table; Free Funds Flow is calculated as Adjusted Funds Flow less capital expenditures; and Free funds flow per share is calculated using the outstanding basic shares of the company as footnoted in the 2025 Corporate Guidance table. The Company has provided additional information on how these measures are calculated, including a reconciliation of such measures to their comparable IFRS measure, in the Management’s Discussion and Analysis for the year ended December 31, 2023 and the interim period ended September 30, 2024, which are available under the Company’s SEDAR+ profile at www.sedarplus.ca.
In respect of any forward-looking non-IFRS measures, there is no significant difference between the non-GAAP financial measure that are forward-looking information and the equivalent historical non-GAAP financial measures.
In this news release, Hemisphere uses the term market capitalization at year-end. Hemisphere’s market capitalization was $178.2 million based on 97,389,735 shares outstanding and the Company’s closing price of $1.83 per share on December 31, 2024.
All amounts are expressed in Canadian dollars unless otherwise noted.
Oil and Gas Advisories
Any references in this news release to recent production rates (including as a result of recent waterflood activities) which may be considered to be initial rates and are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.
A barrel of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Definitions and Abbreviations
bbl
Barrel
WTI
West Texas Intermediate
bbl/d
barrels per day
WCS
Western Canadian Select
$/bbl
dollar per barrel
US$
United States Dollar
boe
barrel of oil equivalent
boe/d
barrel of oil equivalent per day
IFRS
International Financial Reporting Standards
$/boe
dollar per barrel of oil equivalent
G&A
General and Administrative Costs
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Key Points: – Atlas’s $220M Moser deal adds 212MW power fleet, expanding beyond proppant – Deal valued at 4.3x 2025 EBITDA with Moser’s 50%+ margins – Q4 revenue up 92% YOY despite profit pressure, Moser adds stability
Atlas Energy Solutions (NYSE: AESI) is making a bold move into the distributed power market with its $220 million acquisition of Moser Energy Systems, marking a significant expansion beyond its core proppant and logistics business. The deal, announced Monday, represents a strategic pivot that could reshape Atlas’s market position in the energy sector.
The transaction, structured with $180 million in cash and approximately 1.7 million shares of Atlas common stock, values Moser’s operations at roughly 4.3x projected 2025 Adjusted EBITDA. This relatively attractive multiple reflects the strategic value Atlas sees in Moser’s distributed power solutions business, which brings with it a substantial fleet of natural gas-powered assets totaling approximately 212 megawatts.
“This acquisition diversifies the Company into attractive high-growth end markets in both production and distributed power while strengthening Atlas’s current market position,” said John Turner, President and CEO of Atlas. The deal appears well-timed, as the energy sector increasingly focuses on efficient power solutions and environmental considerations.
Mark Reichman, Senior research analyst at Noble Capital Markets, sees broader implications for Atlas’s market position. “In our view, the accretive acquisition of Moser is a strategic play on the theme of electrification and growing demand for electricity,” he notes. “It provides a platform for growth in the distributed power market and provides entry into adjacent end markets, including midstream infrastructure, RNG plants, data centers, and industrial backup power. It enhances and extends Atlas’s competitive position as an integrated solutions provider with exposure to both oilfield services and the distributed power market.”
The strategic rationale becomes clearer when examining Atlas’s preliminary fourth-quarter results for 2024. While the company reported strong revenue growth of approximately 92% year-over-year for Q4, reaching between $270-272 million, its gross profit and Adjusted EBITDA showed some pressure. This acquisition could help stabilize earnings through market cycles by adding Moser’s impressive 50%+ EBITDA margins and robust cash flow generation to Atlas’s portfolio.
Moser’s integration into Atlas creates an innovative energy solutions provider that combines Atlas’s existing completion platform with Moser’s distributed power expertise. The merger brings critical manufacturing capabilities in-house, potentially reducing maintenance and equipment replacement costs while improving quality control. This vertical integration could prove particularly valuable in the current market environment where supply chain reliability is paramount.
The geographic fit appears strong, with Moser’s operations complementing Atlas’s core presence in the Permian Basin while adding diversity through operations across other key oil and gas basins in the central United States. This expansion could help Atlas better serve existing customers while opening new market opportunities.
Looking ahead, Atlas expects the transaction to close by the end of the first quarter of 2025, subject to customary conditions. The company has secured financing through an upsizing amendment to its existing delayed draw term loan facility, demonstrating confidence in the deal’s financial structure.
For investors, this acquisition signals Atlas’s evolution from a pure-play proppant and logistics provider to a more diversified energy solutions company. The move could reduce the company’s exposure to completion operation volatility while positioning it to capitalize on the growing demand for distributed power solutions in the oil and gas sector.
The market will be watching closely to see how quickly Atlas can integrate Moser’s operations and whether the projected $40-45 million in Adjusted EBITDA contribution for 2025 materializes as expected. With energy markets continuing to evolve, this strategic expansion could position Atlas for more stable growth in the years ahead.
Key Points: – $1.275B deal creates $3.8B energy giant with doubled production – Shifts from gas-heavy to balanced oil/gas portfolio – 3.3x EBITDA price with $345M cash flow; EIG takes 20% stake
Diversified Energy (NYSE:DEC) made waves in the energy sector Monday with its $1.275 billion acquisition of Maverick Natural Resources, a move that signals a major shift in domestic energy production strategy and could spark further consolidation in the industry.
The deal, which combines two major players in the U.S. energy market, is set to nearly double Diversified’s revenue and significantly boost its free cash flow, according to company statements. Market observers note this could mark the beginning of a new wave of consolidation in the domestic energy sector, as companies seek to build scale and efficiency in an increasingly competitive market.
“This acquisition expands our unique and highly focused energy production company with a complementary portfolio of attractive, high-quality assets,” said Rusty Hutson, Jr., CEO of Diversified. The combined company will boast an enterprise value of approximately $3.8 billion and operate across five distinct regions, with production reaching approximately 1,200 MMcfe/d.
What’s catching investors’ attention is the deal’s attractive valuation at roughly 3.3 times LTM EBITDA, suggesting Diversified may have found value in a market where quality assets often command premium multiples. The transaction structure, including the assumption of $700 million in Maverick debt and the issuance of 21.2 million new shares, appears designed to maintain financial flexibility while expanding the company’s operational footprint.
Perhaps most significantly, the merger dramatically shifts Diversified’s production mix. While the company has historically been heavily weighted toward natural gas with about 85% of production, Maverick brings a more balanced portfolio with 55% liquids production. This diversification could prove crucial in navigating volatile energy markets.
The deal also marks a strategic entry into the coveted Permian Basin, while strengthening Diversified’s position in the Western Anadarko Basin. Industry analysts suggest this multi-basin exposure could provide valuable operational flexibility and help mitigate regional production risks.
EIG, a major energy-focused investor, will emerge as a significant stakeholder, owning approximately 20% of the outstanding shares post-merger. This backing from a sophisticated institutional investor may provide additional validation for Diversified’s growth strategy.
Looking ahead, the combined company is positioned to benefit from substantial operational synergies and improved market presence. With a projected free cash flow of $345 million, the merged entity should have ample resources to fund both growth initiatives and shareholder returns.
The transaction, expected to close in the first half of 2025, still requires shareholder approval and regulatory clearance. However, with unanimous board approval and strong strategic rationale, the deal appears well-positioned to move forward.
For investors watching the energy sector, this merger could signal a broader trend toward consolidation as companies seek to build scale and improve operational efficiency in an evolving market landscape. The success of this integration could set a template for future deals in the domestic energy sector.
Key Points: – The Biden administration finalized a tax credit offering up to $3 per kilogram for cleaner hydrogen production under the Inflation Reduction Act. – Groups cautiously support the move but warn about potential loopholes rewarding “dirty” hydrogen producers. – Clean hydrogen is expected to aid hard-to-electrify industries like steel manufacturing, aviation, and marine shipping in reducing carbon emissions.
The Biden administration has introduced finalized rules for a tax credit that promises billions of dollars to support cleaner hydrogen production. The rules, released Friday, aim to accelerate the transition away from fossil fuels in industries like transportation, steelmaking, and manufacturing, sectors that are notoriously challenging to decarbonize.
Hydrogen, hailed as a potential clean energy solution, is primarily produced today from natural gas, which emits significant greenhouse gases. However, it can also be produced using renewable or low-emission energy sources like solar, wind, or nuclear power. The new credit, part of the Inflation Reduction Act, is designed to encourage such low-carbon methods.
Under the final rules, producers using renewable energy to split water into hydrogen and oxygen can qualify for the full $3-per-kilogram credit. Producers relying on natural gas may also receive the full credit if they employ carbon capture and sequestration technologies. Alternative methods, such as using biogas or methane from landfills, could also qualify for varying levels of support.
Environmental groups have expressed cautious optimism about the rules. The Clean Air Task Force lauded the policy’s potential to reduce emissions by incentivizing cleaner hydrogen production methods.
“If the hydrogen qualifies for a credit, it means it’s being produced with fewer emissions than the fossil fuels it aims to replace,” said Conrad Schneider, senior director at the Clean Air Task Force.
However, concerns remain. Earthjustice highlighted the risk of “dirty hydrogen” producers exploiting loopholes. Critics worry that hydrogen derived from natural gas, even with carbon capture, might not meet stringent climate goals if methane emissions from gas extraction and transportation are not adequately monitored.
Treasury Deputy Secretary Wally Adeyemo emphasized that the credit, coupled with the Bipartisan Infrastructure Law, represents a transformative step for clean hydrogen development.
“We are advancing the world’s most ambitious policies to support clean hydrogen,” Adeyemo stated, pointing to its potential to replace fossil fuels in hard-to-decarbonize sectors like aviation and marine shipping.
The Fuel Cell & Hydrogen Energy Association, which includes over 100 members across the hydrogen value chain, welcomed the clarity provided by the finalized rules. However, Frank Wolak, the association’s president, expressed uncertainty about how the tax credit would impact industry investment decisions.
“The big question is whether this tax credit will universally spur confidence and drive investments or only work for certain players,” Wolak remarked.
As the clean hydrogen industry begins to navigate this new policy landscape, it faces challenges in ensuring the accurate tracking of emissions, particularly for hydrogen produced using natural gas. The effectiveness of the credit in advancing clean energy solutions while avoiding loopholes remains to be seen.
Key Points: – Jimmy Carter’s presidency spurred advancements in solar energy and laid groundwork for fracking. – His energy policies balanced environmentalism with fossil fuel development. – Conservation efforts during his term highlighted the importance of efficiency in energy consumption.
Jimmy Carter’s presidency left an indelible mark on the U.S. energy landscape, bridging the divide between renewable energy innovation and fossil fuel expansion. While widely celebrated for his environmental foresight, Carter’s policies also propelled the development of oil and natural gas sectors. His multifaceted energy strategy continues to shape America’s approach to energy production and conservation.
Carter’s commitment to renewable energy emerged early in his presidency. Declaring the energy crisis the “moral equivalent of war,” he initiated policies to promote clean energy. Notable milestones included the installation of solar panels on the White House in 1979 and the passage of the National Energy Act of 1978 and the Energy Security Act of 1980. These laws incentivized solar energy, wind power, and non-fossil fuel usage, while establishing the Department of Energy as a key player in energy innovation.
His genuine environmentalism, rooted in his experience as a farmer, extended beyond renewable energy. Carter’s conservation efforts protected over 150 million acres of Alaskan wilderness while also encouraging efficiency in energy consumption nationwide. These actions, coupled with his appointment of climate advocates to federal agencies, underscored his commitment to sustainability.
Despite his green reputation, Carter’s policies also favored fossil fuel development. In response to the twin oil crises of the 1970s, he adopted an “all of the above” energy strategy. This included deregulating natural gas prices, a move that later catalyzed the fracking boom. His administration’s support for increased coal production and crude oil drilling reflected the urgency of reducing America’s dependence on foreign oil, cutting imports by half between 1979 and 1983.
Carter’s nuanced approach also extended to Alaska. While protecting vast swaths of land, he signed legislation permitting limited drilling in the Arctic National Wildlife Refuge, igniting a decades-long debate over resource extraction in the region.
Carter’s emphasis on conservation set him apart from other leaders. His televised appeal to Americans to lower thermostats and adopt energy-saving measures became iconic, symbolized by his signature cardigan sweater. However, these calls for personal sacrifice faced ridicule and dwindled after his term. Conservation—a cornerstone of his energy policy—was reframed as “efficiency” in subsequent administrations, diminishing its prominence in national discourse.
Despite these challenges, Carter’s conservation initiatives yielded measurable success. The reduction in oil imports during his tenure was driven by widespread adoption of energy-saving practices, a testament to the effectiveness of his vision.
Jimmy Carter’s farewell address in 1981 acknowledged the enduring energy challenges facing the nation. His prediction of continued competition for scarce resources remains relevant today. Carter’s energy policies, balancing environmental stewardship with practical fossil fuel use, provide a blueprint for addressing modern energy needs while fostering innovation and sustainability.
Vancouver, British Columbia–(Newsfile Corp. – December 16, 2024) – Hemisphere Energy Corporation (TSXV: HME)(OTCQX: HMENF) (“Hemisphere” or the “Company”) announces that its Board of Directors has approved a new Restricted Share Unit (“RSU”) Plan and made certain amendments to its existing Stock Option Plan that are intended to comply with the provisions of TSXV Policy 4.4 – Security Based Compensation, as well as other housekeeping changes, both subject to shareholder approval at the next annual general meeting in May 2025. The Company’s Board of Directors has also approved grants of incentive RSUs and stock options.
Restricted Share Units
Under the new RSU Plan, RSUs may be granted to directors, employees, and contractors of the Company. The RSU Plan permits the Company to either redeem RSUs for cash or by issuance of Hemisphere’s common shares.
On December 13, 2024, the Company conditionally awarded 930,000 incentive RSUs to directors and officers of Hemisphere, all of which will vest one-third annually over a three-year period and will expire on December 15, 2027.
The RSU Plan and the grant of the above noted RSUs each remain subject to the requisite approval of the shareholders of the Company, in accordance with the rules of the TSX Venture Exchange. These matters, as well as matters relating to the amendments and renewal of the Company’s Stock Option Plan, are expected to be presented for approval at the Company’s next annual meeting of shareholders.
Stock Options
Additionally, in accordance with the Company’s Stock Option Plan, Hemisphere has granted 48,000 incentive stock options to its investor relations service provider on December 13, 2024 at an exercise price of $1.84 per share which will vest quarterly over 12 months and expire on December 13, 2029.
About Hemisphere Energy Corporation
Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, ultra-low decline conventional heavy oil assets through polymer flood EOR methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME” and on the OTCQX Venture Marketplace under the symbol “HMENF”.
For further information, please visit the Company’s website at www.hemisphereenergy.ca to view its corporate presentation or contact:
Don Simmons, President & Chief Executive Officer Telephone: (604) 685-9255 Email: info@hemisphereenergy.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Third quarter financial results. Hemisphere Energy reported third-quarter net income of C$8.6 million or C$0.09 per share compared to C$8.5 million or C$0.08 per share during the third quarter of 2023. We had projected net income of C$8.4 million or C$0.08 per share. Year-over-year, oil and natural gas revenue increased 9.6% to C$26.7 million, driven by an 18.5% increase in average daily production to 3,621 barrels of oil equivalent (BOE) compared to 3,056 during the prior year period and our estimate of 3,600. The average sales price per BOE declined to C$80.06 compared to C$86.57 in the third quarter of 2023. Adjusted funds flow from operations amounted to C$11.7 million or C$0.12 per diluted share compared to C$11.7 million or C$0.11 per diluted share during the prior year period.
Updating estimates. While our 2024 EPS estimate is unchanged at C$0.31, we have modestly lowered our adjusted funds flow estimate to C$43.5 million from C$43.8 million. We lowered our full year average daily production expectations to 3,456 barrels of oil equivalent from 3,534 to reflect down time in the fourth quarter associated with vessel inspections and maintenance. While our 2025 average daily production estimate of 3,625 barrels of oil equivalent is unchanged, we lowered our 2025 AFF and EPS estimates to C$38.0 million and C$0.27 per share from C$42.6 million and C$0.32 to reflect lower crude oil prices.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
