Thursday, March 20, 2025
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.
Reserve report. Hemisphere released results from its independent reserve evaluation as of December 31, 2024. Compared to the year-end 2023 reserve report, proved developed producing (PDP) reserves increased 13.1% to 9,302.2 thousand barrels of oil equivalents. The growth in PDP reserves replaced 186% of 2024 production. Hemisphere’s estimated 2024 capital expenditures of ~C$22 million funded PDP reserve growth, annual production growth of ~10%, additional infrastructure, and the testing of a new resource play in Saskatchewan with an enhanced oil recovery (EOR) polymer pilot project.
Outlook for 2025.Hemisphere expects 2025 capital expenditures of ~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. Most of the capital will be allocated to drilling, optimization, and facility work, with ~10% allotted to exploration and land acquisition. The majority of the 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.
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