$HNRC HNRC INTENDS TO BE DEBT FREE AND ACQUIRE INC
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Posted On: 01/27/2022 11:53:47 AM
$HNRC HNRC INTENDS TO BE DEBT FREE AND ACQUIRE INCOME PRODUCING ASSETS
https://www.prnewswire.com/news-releases/hnrc...69849.html
HOUSTON, Jan. 27, 2022 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) ("HNR or the Company"
announced today it has a strong balance sheet to continue its aggressive growth in 2022 and intends to become debt free.
The company has a current debt- to-equity ratio of less than 2% with current liabilities less than $1,300,000 including less than $700,000 in Notes payable.
The oil industry has about a 40% debt-to-capital threshold. Above that level, debt costs increase considerably. The company has been able to use its low debt ratio to acquire equipment and is now well positioned to make future acquisitions.
According to Investopedia… "Investors in the oil and gas industry should keep an eye on the debt levels on the balance sheet. It is such a capital-intensive industry that high levels of debt can put a strain on a company's credit ratings, weakening its ability to purchase new equipment or finance other capital projects. Poor credit ratings can also harm its ability to acquire new businesses."
In addition, Investopedia states… "Debt, when used properly, can increase shareholder returns. Having too much debt, however, leaves firms vulnerable to economic downturns and interest rate hikes. Too much debt can also increase the perceived risk with the business and discourage investors from investing more capital."
The Company's net asset value is $4.00 per share for the period ending September 30, 2021.
According to industry research, the S&P 500 Integrated Oil & Gas Index, forward earnings, & valuation between 8x and 14x forward earnings. This would imply a target value for HNRC of between $6.00 per share and $10.00 per share based on its projected earnings.
The company intends to continue to focus on acquiring companies in the energy industry. The focus is to acquire and manage mature natural gas and oil properties to generate cash flows and provide stability and growth for the long-term benefit of our stakeholders.
This is in addition to the company acquiring additional wastewater treatment facilities and technologies to improve the provide for a nationwide network for wastewater treatment.
The company is also looking at waste-to-energy ("WTE" opportunities which is the process of generating energy in the form of electricity and/or heat from the primary treatment of waste, or the processing of waste into a fuel source. WTE is a form of energy recovery. Most WTE processes generate electricity and/or heat directly through combustion, or produce a combustible fuel commodity, such as methane, methanol, ethanol or synthetic fuels. In addition to traditional energy opportunities, the company is also evaluating renewable energy projects.
The company intends to finance the acquisitions through traditional financing sources and through the sponsoring of special purpose acquisition corporations focused on energy and energy transition projects with capital of between $50 million and $150 million.
https://www.prnewswire.com/news-releases/hnrc...69849.html
HOUSTON, Jan. 27, 2022 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) ("HNR or the Company"
announced today it has a strong balance sheet to continue its aggressive growth in 2022 and intends to become debt free. The company has a current debt- to-equity ratio of less than 2% with current liabilities less than $1,300,000 including less than $700,000 in Notes payable.
The oil industry has about a 40% debt-to-capital threshold. Above that level, debt costs increase considerably. The company has been able to use its low debt ratio to acquire equipment and is now well positioned to make future acquisitions.
According to Investopedia… "Investors in the oil and gas industry should keep an eye on the debt levels on the balance sheet. It is such a capital-intensive industry that high levels of debt can put a strain on a company's credit ratings, weakening its ability to purchase new equipment or finance other capital projects. Poor credit ratings can also harm its ability to acquire new businesses."
In addition, Investopedia states… "Debt, when used properly, can increase shareholder returns. Having too much debt, however, leaves firms vulnerable to economic downturns and interest rate hikes. Too much debt can also increase the perceived risk with the business and discourage investors from investing more capital."
The Company's net asset value is $4.00 per share for the period ending September 30, 2021.
According to industry research, the S&P 500 Integrated Oil & Gas Index, forward earnings, & valuation between 8x and 14x forward earnings. This would imply a target value for HNRC of between $6.00 per share and $10.00 per share based on its projected earnings.
The company intends to continue to focus on acquiring companies in the energy industry. The focus is to acquire and manage mature natural gas and oil properties to generate cash flows and provide stability and growth for the long-term benefit of our stakeholders.
This is in addition to the company acquiring additional wastewater treatment facilities and technologies to improve the provide for a nationwide network for wastewater treatment.
The company is also looking at waste-to-energy ("WTE"
opportunities which is the process of generating energy in the form of electricity and/or heat from the primary treatment of waste, or the processing of waste into a fuel source. WTE is a form of energy recovery. Most WTE processes generate electricity and/or heat directly through combustion, or produce a combustible fuel commodity, such as methane, methanol, ethanol or synthetic fuels. In addition to traditional energy opportunities, the company is also evaluating renewable energy projects. The company intends to finance the acquisitions through traditional financing sources and through the sponsoring of special purpose acquisition corporations focused on energy and energy transition projects with capital of between $50 million and $150 million.
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