New Risk • May 14
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 27% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 6.3% per year for the foreseeable future. High level of non-cash earnings (27% accrual ratio). Minor Risk Dividend is not well covered by cash flows (177% cash payout ratio). Buy Or Sell Opportunity • May 13
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 35% to CA$2.87. The fair value is estimated to be CA$2.38, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to decline by 14% in the next 2 years. Upcoming Dividend • May 07
Upcoming dividend of CA$0.03 per share Eligible shareholders must have bought the stock before 14 May 2026. Payment date: 28 May 2026. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 5.5%. Within top quartile of Canadian dividend payers (5.4%). Higher than average of industry peers (3.5%). Buy Or Sell Opportunity • Apr 27
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 39% to CA$2.89. The fair value is estimated to be CA$2.39, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to decline by 14% in the next 2 years. Price Target Changed • Apr 25
Price target increased by 18% to CA$3.50 Up from CA$2.96, the current price target is provided by 1 analyst. New target price is 23% above last closing price of CA$2.84. Stock is up 62% over the past year. The company is forecast to post earnings per share of CA$0.25 for next year compared to CA$0.29 last year. New Risk • Apr 16
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.9% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 16
Full year 2025 earnings: EPS in line with analyst expectations despite revenue beat Full year 2025 results: EPS: CA$0.29 (down from CA$0.34 in FY 2024). Revenue: CA$76.7m (down 3.7% from FY 2024). Net income: CA$28.0m (down 15% from FY 2024). Profit margin: 37% (down from 42% in FY 2024). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 5.2% p.a. on average during the next 2 years, compared to a 3.9% growth forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Apr 08
Upcoming dividend of CA$0.03 per share Eligible shareholders must have bought the stock before 15 April 2026. Payment date: 28 April 2026. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 5.6%. Within top quartile of Canadian dividend payers (5.6%). Higher than average of industry peers (3.4%). Announcement • Mar 31
Hemisphere Energy Corporation, Annual General Meeting, Jun 10, 2026 Hemisphere Energy Corporation, Annual General Meeting, Jun 10, 2026. Location: british columbia, vancouver Canada Declared Dividend • Mar 15
Dividend of CA$0.03 announced Dividend of CA$0.03 is the same as last year. Ex-date: 15th April 2026 Payment date: 28th April 2026 Dividend yield will be 6.1%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is well covered by both earnings (32% earnings payout ratio) and cash flows (34% cash payout ratio). The dividend has increased by an average of 12% per year over the past 4 years and payments have been stable during that time. EPS is expected to decline by 16% over the next 2 years. However, it would need to fall by 65% to increase the payout ratio to a potentially unsustainable range. Price Target Changed • Mar 12
Price target increased by 8.6% to CA$3.16 Up from CA$2.91, the current price target is an average from 2 analysts. New target price is 22% above last closing price of CA$2.58. Stock is up 46% over the past year. The company is forecast to post earnings per share of CA$0.28 for next year compared to CA$0.34 last year. Declared Dividend • Jan 30
Dividend of CA$0.025 announced Dividend of CA$0.025 is the same as last year. Ex-date: 12th February 2026 Payment date: 26th February 2026 Dividend yield will be 7.7%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is well covered by both earnings (32% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 12% per year over the past 4 years and payments have been stable during that time. EPS is expected to decline by 13% over the next 2 years. However, it would need to fall by 65% to increase the payout ratio to a potentially unsustainable range. Announcement • Jan 29
Hemisphere Energy Corporation Declares Quarterly Cash Dividend, Payable on February 26, 2026 Hemisphere announced 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, 2026 to shareholders of record as of the close of business on February 12, 2026. Declared Dividend • Nov 27
Dividend of CA$0.025 announced Dividend of CA$0.025 is the same as last year. Ex-date: 9th December 2025 Payment date: 30th December 2025 Dividend yield will be 7.9%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is well covered by both earnings (8% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 17% per year over the past 3 years and payments have been stable during that time. EPS is expected to decline by 20% over the next 2 years. However, it would need to fall by 91% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Nov 26
Third quarter 2025 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2025 results: EPS: CA$0.07 (down from CA$0.087 in 3Q 2024). Revenue: CA$19.1m (down 8.3% from 3Q 2024). Net income: CA$6.93m (down 19% from 3Q 2024). Profit margin: 36% (down from 41% in 3Q 2024). Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 12% per year. Price Target Changed • Oct 21
Price target increased by 8.3% to CA$2.93 Up from CA$2.70, the current price target is an average from 2 analysts. New target price is 42% above last closing price of CA$2.06. Stock is up 12% over the past year. The company is forecast to post earnings per share of CA$0.30 for next year compared to CA$0.34 last year. Price Target Changed • Aug 20
Price target increased by 8.8% to CA$2.78 Up from CA$2.55, the current price target is an average from 2 analysts. New target price is 43% above last closing price of CA$1.94. Stock is up 11% over the past year. The company is forecast to post earnings per share of CA$0.30 for next year compared to CA$0.34 last year. Declared Dividend • Aug 17
Dividend of CA$0.025 announced Shareholders will receive a dividend of CA$0.025. Ex-date: 29th August 2025 Payment date: 12th September 2025 Dividend yield will be 9.7%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is well covered by both earnings (15% earnings payout ratio) and cash flows (38% cash payout ratio). The dividend has increased by an average of 17% per year over the past 3 years and payments have been stable during that time. EPS is expected to decline by 36% over the next 3 years. However, it would need to fall by 83% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Aug 15
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: CA$0.07 (down from CA$0.11 in 2Q 2024). Revenue: CA$19.4m (down 14% from 2Q 2024). Net income: CA$7.05m (down 32% from 2Q 2024). Profit margin: 36% (down from 46% in 2Q 2024). Revenue exceeded analyst estimates by 15%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Revenue is forecast to stay flat during the next 3 years compared to a 3.2% growth forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 24
Upcoming dividend of CA$0.03 per share Eligible shareholders must have bought the stock before 31 July 2025. Payment date: 15 August 2025. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 8.2%. Within top quartile of Canadian dividend payers (6.1%). Higher than average of industry peers (4.7%). Upcoming Dividend • Jun 12
Upcoming dividend of CA$0.025 per share Eligible shareholders must have bought the stock before 19 June 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 8.7%. Within top quartile of Canadian dividend payers (6.1%). Higher than average of industry peers (4.8%). New Risk • May 29
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 7.2% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 18% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Declared Dividend • May 25
Dividend of CA$0.025 announced Shareholders will receive a dividend of CA$0.025. Ex-date: 19th June 2025 Payment date: 30th June 2025 Dividend yield will be 11%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is well covered by both earnings (28% earnings payout ratio) and cash flows (36% cash payout ratio). The dividend has increased by an average of 17% per year over the past 3 years and payments have been stable during that time. EPS is expected to decline by 41% over the next 3 years. However, it would need to fall by 69% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • May 23
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: CA$0.09 (up from CA$0.069 in 1Q 2024). Revenue: CA$21.3m (up 25% from 1Q 2024). Net income: CA$8.94m (up 32% from 1Q 2024). Profit margin: 42% (up from 40% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.5%. Earnings per share (EPS) also surpassed analyst estimates by 5.9%. Revenue is forecast to stay flat during the next 3 years compared to a 2.1% growth forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 24
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CA$104.2m to CA$99.4m. EPS estimate also fell from CA$0.36 per share to CA$0.32 per share. Net income forecast to shrink 2.1% next year vs 12% growth forecast for Oil and Gas industry in Canada . Consensus price target of CA$2.73 unchanged from last update. Share price was steady at CA$1.72 over the past week. Announcement • Apr 19
Hemisphere Energy Corporation Provides Production Guidance for the First Quarter of 2025 Hemisphere Energy Corporation provided production guidance for the first quarter 2025. Company's first quarter 2025 field estimated production has since grown to 3,800 boe/d (99% heavy oil) through continued success of its polymer floods, despite no new wells being drilled since the third quarter of 2024. Reported Earnings • Apr 17
Full year 2024 earnings: EPS in line with analyst expectations despite revenue beat Full year 2024 results: EPS: CA$0.34 (up from CA$0.24 in FY 2023). Revenue: CA$79.1m (up 17% from FY 2023). Net income: CA$33.1m (up 37% from FY 2023). Profit margin: 42% (up from 36% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Apr 10
Upcoming dividend of CA$0.03 per share Eligible shareholders must have bought the stock before 17 April 2025. Payment date: 28 April 2025. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 9.6%. Within top quartile of Canadian dividend payers (6.7%). Higher than average of industry peers (5.2%). Announcement • Mar 24
Hemisphere Energy Corporation, Annual General Meeting, Jun 02, 2025 Hemisphere Energy Corporation, Annual General Meeting, Jun 02, 2025. Location: british columbia, vancouver Canada Buy Or Sell Opportunity • Feb 27
Now 21% overvalued Over the last 90 days, the stock has fallen 1.1% to CA$1.86. The fair value is estimated to be CA$1.54, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 41%. For the next 3 years, revenue is forecast to grow by 1.1% per annum. Earnings are forecast to decline by 7.4% per annum over the same time period. Recent Insider Transactions Derivative • Feb 07
Independent Director exercised options to buy CA$228k worth of stock. On the 5th of February, Gregg Vernon exercised options to buy 125k shares at a strike price of around CA$0.44, costing a total of CA$55k. This transaction amounted to 24% of their direct individual holding at the time of the trade. Since June 2024, Gregg has owned 529.80k shares directly. Company insiders have collectively bought CA$1.4m more than they sold, via options and on-market transactions, in the last 12 months. Declared Dividend • Feb 02
Dividend of CA$0.025 announced Dividend of CA$0.025 is the same as last year. Ex-date: 12th February 2025 Payment date: 26th February 2025 Dividend yield will be 8.6%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is covered by both earnings (33% earnings payout ratio) and cash flows (57% cash payout ratio). The dividend has increased by an average of 17% per year over the past 3 years and payments have been stable during that time. EPS is expected to decline by 22% over the next 3 years. However, it would need to fall by 63% to increase the payout ratio to a potentially unsustainable range. Announcement • Jan 30
Hemisphere Energy Corporation Approves Dividend, Payable on February 26, 2025 Hemisphere Energy Corporation 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. Declared Dividend • Nov 25
Dividend of CA$0.025 announced Dividend of CA$0.025 is the same as last year. Ex-date: 13th December 2024 Payment date: 27th December 2024 Dividend yield will be 8.5%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is covered by both earnings (33% earnings payout ratio) and cash flows (58% cash payout ratio). The dividend has increased by an average of 26% per year over the past 2 years and payments have been stable during that time. EPS is expected to decline by 24% over the next 3 years. However, it would need to fall by 63% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Nov 22
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: CA$0.09 (up from CA$0.084 in 3Q 2023). Revenue: CA$20.9m (up 8.3% from 3Q 2023). Net income: CA$8.60m (up 1.5% from 3Q 2023). Profit margin: 41% (down from 44% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 5.3%. Revenue is expected to decline by 1.7% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in Canada are expected to grow by 1.9%. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Declared Dividend • Sep 26
Dividend of CA$0.03 announced Shareholders will receive a dividend of CA$0.03. Ex-date: 11th October 2024 Payment date: 25th October 2024 Dividend yield will be 8.4%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is covered by both earnings (34% earnings payout ratio) and cash flows (53% cash payout ratio). The dividend has increased by an average of 14% per year over the past 2 years and payments have been stable during that time. EPS is expected to decline by 19% over the next 3 years. However, it would need to fall by 63% to increase the payout ratio to a potentially unsustainable range. Announcement • Sep 24
Hemisphere Energy Corporation Announces Special Dividend, Payable on October 25, 2024 Hemisphere Energy Corporation announced that its board of directors has approved the declaration of a special dividend of CAD 0.03 per common share, in accordance with its dividend policy. The special dividend will be paid on October 25, 2024 to shareholders of record on October 11, 2024, and is designated as an eligible dividend for Canadian income tax purposes. It is in addition to the Company's quarterly base dividend of CAD 0.025 per common share. Declared Dividend • Aug 22
Dividend of CA$0.025 announced Shareholders will receive a dividend of CA$0.025. Ex-date: 30th August 2024 Payment date: 13th September 2024 Dividend yield will be 9.1%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is covered by both earnings (35% earnings payout ratio) and cash flows (54% cash payout ratio). The dividend has increased by an average of 14% per year over the past 2 years and payments have been stable during that time. EPS is expected to decline by 19% over the next 3 years. However, it would need to fall by 62% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Aug 21
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: CA$0.11 (up from CA$0.057 in 2Q 2023). Revenue: CA$22.7m (up 51% from 2Q 2023). Net income: CA$10.4m (up 79% from 2Q 2023). Profit margin: 46% (up from 39% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.8%. Earnings per share (EPS) missed analyst estimates by 58%. Revenue is expected to decline by 1.1% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in Canada are expected to grow by 3.2%. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jul 18
Consensus EPS estimates increase by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from CA$92.9m to CA$100.9m. EPS estimate increased from CA$0.295 to CA$0.345 per share. Net income forecast to grow 35% next year vs 32% growth forecast for Oil and Gas industry in Canada. Consensus price target of CA$2.50 unchanged from last update. Share price fell 2.7% to CA$1.78 over the past week. Upcoming Dividend • Jul 05
Upcoming dividend of CA$0.03 per share Eligible shareholders must have bought the stock before 12 July 2024. Payment date: 26 July 2024. Payout ratio is a comfortable 40% and the cash payout ratio is 77%. Trailing yield: 5.6%. Lower than top quartile of Canadian dividend payers (6.5%). Higher than average of industry peers (4.8%). Recent Insider Transactions • Jun 27
Independent Director recently bought CA$122k worth of stock On the 20th of June, Gregg Vernon bought around 72k shares on-market at roughly CA$1.69 per share. This transaction amounted to 16% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$155k more in shares than they have sold in the last 12 months. Upcoming Dividend • Jun 13
Upcoming dividend of CA$0.025 per share Eligible shareholders must have bought the stock before 20 June 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 40% and the cash payout ratio is 77%. Trailing yield: 6.3%. Lower than top quartile of Canadian dividend payers (6.4%). Higher than average of industry peers (4.9%). Recent Insider Transactions Derivative • Jun 13
Chief Development Officer exercised options to buy CA$1.1m worth of stock. On the 7th of June, Ashley Ramsden-Wood exercised options to buy 680k shares at a strike price of around CA$1.19, costing a total of CA$808k. This transaction amounted to 41% of their direct individual holding at the time of the trade. Since September 2023, Ashley's direct individual holding has increased from 1.62m shares to 1.67m. Company insiders have collectively bought CA$902k more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Jun 06
Hemisphere Energy Corporation Declares Special Dividend, Payable on July 26, 2024 Hemisphere Energy Corporation announced that its board of directors has approved the declaration of a special dividend of CAD 0.03 per common share. The special dividend is part of Hemisphere's comprehensive shareholder return model, and will be paid on July 26, 2024 to shareholders of record on July 12, 2024. This special dividend is designated as an eligible dividend for Canadian income tax purposes. It is in addition to the Company's quarterly base dividend of CAD 0.025 per common share announced on May 29, 2024, and is in accordance with the Company's dividend policy. Reported Earnings • May 30
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: CA$0.07 (up from CA$0.059 in 1Q 2023). Revenue: CA$16.6m (up 7.4% from 1Q 2023). Net income: CA$6.78m (up 14% from 1Q 2023). Profit margin: 41% (up from 39% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.3%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Revenue is forecast to stay flat during the next 3 years compared to a 5.5% growth forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 42% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 18
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CA$0.24 (up from CA$0.21 in FY 2022). Revenue: CA$68.6m (down 5.0% from FY 2022). Net income: CA$24.2m (up 14% from FY 2022). Profit margin: 35% (up from 30% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is expected to decline by 2.2% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in Canada are expected to grow by 5.3%. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 59% per year, which means it is significantly lagging earnings growth. Announcement • Mar 16
Hemisphere Energy Corporation, Annual General Meeting, May 30, 2024 Hemisphere Energy Corporation, Annual General Meeting, May 30, 2024. Location: Walker Room, Terminal City Club 837 West Hastings Street Vancouver British Columbia Canada Upcoming Dividend • Feb 01
Upcoming dividend of CA$0.025 per share at 7.5% yield Eligible shareholders must have bought the stock before 08 February 2024. Payment date: 23 February 2024. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 7.5%. Within top quartile of Canadian dividend payers (6.4%). Higher than average of industry peers (5.3%). Declared Dividend • Jan 29
Dividend of CA$0.025 announced Shareholders will receive a dividend of CA$0.025. Ex-date: 8th February 2024 Payment date: 23rd February 2024 Dividend yield will be 9.6%, which is higher than the industry average of 5.3%. Sustainability & Growth Dividend is covered by both earnings (43% earnings payout ratio) and cash flows (52% cash payout ratio). The dividend has not increased over the past 2 years but payments have been stable during that time. EPS is expected to decline by 35% over the next 3 years. However, it would need to fall by 52% to increase the payout ratio to a potentially unsustainable range. Price Target Changed • Jan 26
Price target increased by 13% to CA$2.40 Up from CA$2.13, the current price target is an average from 2 analysts. New target price is 80% above last closing price of CA$1.33. Stock is down 0.7% over the past year. The company is forecast to post earnings per share of CA$0.28 for next year compared to CA$0.21 last year. Announcement • Jan 25
Hemisphere Energy Corporation Approves Quarterly Cash Dividend, Payable on February 23, 2024 Hemisphere announced 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 23, 2024 to shareholders of record as of the close of business on February 9, 2024. New Risk • Jan 19
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 13% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 13% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (CA$124.7m market cap, or US$92.6m). Price Target Changed • Jan 10
Price target decreased by 15% to CA$2.13 Down from CA$2.50, the current price target is an average from 2 analysts. New target price is 66% above last closing price of CA$1.28. Stock is down 1.5% over the past year. The company is forecast to post earnings per share of CA$0.28 for next year compared to CA$0.21 last year. Announcement • Dec 19
Hemisphere Energy Corporation Appoints Ashley Ramsden-Wood as Chief Development Officer Hemisphere Energy Corporation announced the appointment of Ashley Ramsden-Wood as Chief Development Officer. Ms. Ramsden-Wood has served as Vice President of Engineering at Hemisphere since 2014 and has been instrumental in the successful growth and development of the Company. Along with her technical engineering strengths, Ms. Ramsden-Wood provides invaluable contributions to corporate affairs, capital planning, business development, strategic growth initiatives, and financial performance analysis. Upcoming Dividend • Dec 07
Upcoming dividend of CA$0.025 per share at 8.0% yield Eligible shareholders must have bought the stock before 14 December 2023. Payment date: 28 December 2023. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 8.0%. Within top quartile of Canadian dividend payers (6.6%). Higher than average of industry peers (5.2%). Price Target Changed • Nov 24
Price target increased by 11% to CA$2.50 Up from CA$2.25, the current price target is an average from 2 analysts. New target price is 95% above last closing price of CA$1.28. Stock is down 12% over the past year. The company is forecast to post earnings per share of CA$0.28 for next year compared to CA$0.21 last year. Announcement • Nov 22
Hemisphere Energy Corporation Approves Quarterly Cash Dividend, Payable on December 28, 2023 Hemisphere Energy Corporation announced 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 December 28, 2023 to shareholders of record as of the close of business on December 15, 2023. The dividend is designated as an eligible dividend for income tax purposes. Reported Earnings • Nov 22
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: CA$0.06 (down from CA$0.091 in 3Q 2022). Revenue: CA$18.9m (down 3.5% from 3Q 2022). Net income: CA$8.47m (down 9.1% from 3Q 2022). Profit margin: 45% (down from 48% in 3Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue exceeded analyst estimates by 9.3%. Earnings per share (EPS) missed analyst estimates by 20%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has increased by 115% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Oct 12
Upcoming dividend of CA$0.03 per share at 7.6% yield Eligible shareholders must have bought the stock before 19 October 2023. Payment date: 01 November 2023. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 7.6%. Within top quartile of Canadian dividend payers (6.6%). Higher than average of industry peers (5.1%). Reported Earnings • Aug 25
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: EPS: CA$0.06 (up from CA$0.041 in 2Q 2022). Revenue: CA$14.8m (down 24% from 2Q 2022). Net income: CA$5.79m (up 40% from 2Q 2022). Profit margin: 39% (up from 21% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) missed analyst estimates by 7.7%. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 106% per year whereas the company’s share price has increased by 109% per year. Announcement • Aug 25
Hemisphere Energy Corporation Declares Quarterly Cash Dividend, Payable on September 14, 2023 Hemisphere Energy Corporation is 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 September 14, 2023 to shareholders of record as of the close of business on August 31, 2023. The dividend is designated as an eligible dividend for income tax purposes. New Risk • Jul 28
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: CA$103k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.7% per year for the foreseeable future. Minor Risks Short dividend paying track record (1 year of continuous dividend payments). Significant insider selling over the past 3 months (CA$103k sold). Market cap is less than US$100m (CA$126.3m market cap, or US$95.4m). Recent Insider Transactions • Jul 28
Independent Director recently sold CA$95k worth of stock On the 21st of July, Frank Borowicz sold around 75k shares on-market at roughly CA$1.26 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$466k more than they bought in the last 12 months. Major Estimate Revision • Jun 01
Consensus EPS estimates increase by 17% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from CA$0.24 to CA$0.28. Revenue forecast steady at CA$80.0m. Net income forecast to grow 29% next year vs 18% decline forecast for Oil and Gas industry in Canada. Consensus price target of CA$2.13 unchanged from last update. Share price was steady at CA$1.24 over the past week. Reported Earnings • May 27
First quarter 2023 earnings released: EPS: CA$0.06 (vs CA$0.05 in 1Q 2022) First quarter 2023 results: EPS: CA$0.06 (up from CA$0.05 in 1Q 2022). Revenue: CA$15.3m (up 23% from 1Q 2022). Net income: CA$5.96m (up 29% from 1Q 2022). Profit margin: 39% (up from 37% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in Canada are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 106% per year but the company’s share price has increased by 142% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Apr 21
Full year 2022 earnings released: EPS: CA$0.21 (vs CA$0.067 in FY 2021) Full year 2022 results: EPS: CA$0.21 (up from CA$0.067 in FY 2021). Revenue: CA$66.9m (up 89% from FY 2021). Net income: CA$21.3m (up 260% from FY 2021). Profit margin: 32% (up from 17% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 1.5% decline forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 108% per year but the company’s share price has increased by 168% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 02
Hemisphere Energy Corporation Approves Quarterly Cash Dividend, Payable on February 21, 2023 Hemisphere Energy Corporation announced that its board of directors has approved a quarterly cash dividend of $0.025 per common share in accordance with the Company's variable dividend policy. The dividend will be paid February 21, 2023 to shareholders of record as of the close of business on February 10, 2023. The dividend is designated as an eligible dividend for income tax purposes. Announcement • Dec 21
Hemisphere Energy Corporation Announces Drilling Program Hemisphere Energy Corporation that it has commenced a two-well drilling program in the Atlee Buffalo area of southeast Alberta. With service cost increases and labour shortages continuing to impact the industry, Hemisphere has taken advantage of an available rig at lower rates to accelerate its first quarter drilling program to December. While drilling operations are expected to be finished by year-end, the Atlee F pool wells are unlikely to be completed and brought online until January. Due to the accelerated drilling of these wells, the Company anticipates an increase of approximately $2 million of capital spending in 2022. The Company has also granted incentive stock options, in accordance with the Company's stock option plan, to purchase up to 2.075 million common shares until December 14, 2032, to directors, officers, and investor relations personnel at an exercise price of $1.30 per share. Reported Earnings • Nov 18
Third quarter 2022 earnings released: EPS: CA$0.09 (vs CA$0.026 in 3Q 2021) Third quarter 2022 results: EPS: CA$0.09 (up from CA$0.026 in 3Q 2021). Revenue: CA$19.6m (up 136% from 3Q 2021). Net income: CA$9.32m (up 303% from 3Q 2021). Profit margin: 48% (up from 28% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.0% p.a. on average during the next 3 years, compared to a 1.3% decline forecast for the Oil and Gas industry in Canada. Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has increased by 110% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Nov 18
Hemisphere Energy Corporation Declares Quarterly Dividend, Payable on November 30, 2022 Hemisphere Energy Corporation has approved a quarterly dividend of $0.025 per share, to be paid November 30, 2022 to shareholders of record as of the close of business on November 23, 2022. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 6 highly experienced directors. Independent Director Richard Wyman was the last director to join the board, commencing their role in 2014. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Sep 23
Hemisphere Energy Corporation Provides an Update on Its Operations in Southern Alberta Hemisphere Energy Corporation provided an update on its operations in Southern Alberta. Hemisphere completed construction of its new injection plant at the Atlee Buffalo F pool battery during the summer and moved into the early stages of tertiary recovery for the pool in August. Through the fourth quarter, the Company plans to expand its oil battery with the addition of a new treater, allowing for higher production from the pool over the coming years. The surfactant-polymer flood is expected to help reduce water channeling in the reservoir by slowing down movement of the injectant relative to the oil, and to maximize reservoir sweep by reducing interfacial tension between oil and water. The addition of surfactant may also serve as an injectant aid, allowing more volumes of injectant to cycle through the reservoir over the life of the project. Overall recovery of oil from the pool is modelled to increase by up to 50% under this flood, as compared to waterflood alone. Management believes there will be a gradual production response to the SP flood with limited impact in the coming year. This strategic investment is expected to add long term value to shareholders by supporting the Company's low decline and extending the life of its assets. Drilling and Operations Update: In September, Hemisphere commenced a drilling program across its Southern Alberta assets. Up to four wells will be drilled in this program to test potential new pools, pool extensions, and new production technologies. Successful wells are anticipated to be brought online through the fourth quarter. Well data from the spring drilling program indicated that the northwest portion of the G pool requires pressure maintenance, with seven producers and only one injector in the area. As a result, the Company recently converted one production well to an injection well, and is waiting on approval to convert another shortly. These conversions are expected to lead to increased production at offsetting producing wells in the future. Hemisphere anticipates third quarter production to be between 2,800-2,900 boe/d (99% heavy crude oil), due to low reservoir pressure in the area of the new wells, along with unplanned facility downtime at Hemisphere's G pool facility in August and a planned G pool facility turnaround in late September. Upcoming Dividend • Aug 23
Upcoming dividend of CA$0.025 per share Eligible shareholders must have bought the stock before 30 August 2022. Payment date: 07 September 2022. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 7.9%. Within top quartile of Canadian dividend payers (5.4%). Higher than average of industry peers (4.4%). Announcement • Aug 19
Hemisphere Energy Corporation Approves Quarterly Dividend, Payable on September 7, 2022 Hemisphere Energy Corporation approved a quarterly dividend of $0.025 per share, to be paid on September 7, 2022 to shareholders of record as of the close of business on August 31, 2022. The dividend is designated as an eligible dividend for income tax purposes. Reported Earnings • Aug 18
Second quarter 2022 earnings released: EPS: CA$0.04 (vs CA$0.041 loss in 2Q 2021) Second quarter 2022 results: EPS: CA$0.04 (up from CA$0.041 loss in 2Q 2021). Revenue: CA$19.5m (up 134% from 2Q 2021). Net income: CA$4.13m (up CA$7.72m from 2Q 2021). Profit margin: 21% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has increased by 154% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Aug 11
Chairman of the Board recently sold CA$76k worth of stock On the 8th of August, Charles O'Sullivan sold around 50k shares on-market at roughly CA$1.51 per share. This was the largest sale by an insider in the last 3 months. This was Charles' only on-market trade for the last 12 months. Recent Insider Transactions Derivative • Jun 12
Vice President of Exploration exercised options to buy CA$1.0m worth of stock. On the 8th of June, Andrew Arthur exercised options to buy 570k shares at a strike price of around CA$0.25, costing a total of CA$143k. This transaction amounted to 58% of their direct individual holding at the time of the trade. Since December 2021, Andrew's direct individual holding has increased from 961.50k shares to 976.50k. Company insiders have collectively sold CA$232k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Jun 02
Chief Operating Officer exercised options to buy CA$408k worth of stock. On the 25th of May, Ian Duncan exercised options to buy 240k shares at a strike price of around CA$0.25, costing a total of CA$60k. This transaction amounted to 11% of their direct individual holding at the time of the trade. Since December 2021, Ian's direct individual holding has increased from 2.07m shares to 2.28m. Company insiders have collectively sold CA$418k more than they bought, via options and on-market transactions in the last 12 months. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 16% share price gain to CA$1.50, the stock trades at a trailing P/E ratio of 25.6x. Average trailing P/E is 8x in the Oil and Gas industry in Canada. Total returns to shareholders of 900% over the past three years. Recent Insider Transactions Derivative • May 14
President exercised options to buy CA$644k worth of stock. On the 12th of May, Don Simmons exercised options to buy 450k shares at a strike price of around CA$0.25, costing a total of CA$113k. This transaction amounted to 17% of their direct individual holding at the time of the trade. Since June 2021, Don's direct individual holding has increased from 2.37m shares to 2.67m. Company insiders have collectively sold CA$484k more than they bought, via options and on-market transactions in the last 12 months. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 5 highly experienced directors. Independent Director Richard Wyman was the last director to join the board, commencing their role in 2014. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 22
Full year 2021 earnings released: EPS: CA$0.07 (vs CA$0.005 loss in FY 2020) Full year 2021 results: EPS: CA$0.07 (up from CA$0.005 loss in FY 2020). Revenue: CA$30.3m (up 79% from FY 2020). Net income: CA$5.92m (up CA$6.33m from FY 2020). Profit margin: 20% (up from net loss in FY 2020). Oil reserves and sales price Proven reserves: 9.863 MMbbls Average sales price/bbl: US$65.46 Gas reserves and sales price Proven reserves: 0.074 Bcf Average sales price/mcf: US$3.42 Combined production and costs Oil equivalent production: 0.664 MMboe (0.623 MMboe in FY 2020) Average production cost/Boe: US$9.86 (US$7.41/Boe in FY 2020) Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has increased by 112% per year, which means it is tracking significantly ahead of earnings growth.