Could you give me a little background on the company and why you like it enough to add it to the portfolio.
Thanks
Jeff
In 2017, revenue was just $9.1M, so HME has certainly grown in the past nine years. Sales have grown every year except for 2020 (Covid and negative oil prices). HME focuses its operations on conventional heavy oil assets in southeast Alberta, Canada, primarily the Atlee Buffalo area, which it fully owns and operates. These assets feature two significant Glauconitic Formation oil pools developed using polymer flood enhanced oil recovery (EOR) techniques. The company's main production comes from the Atlee Buffalo field, spanning multiple sections with low-decline reservoirs and up to 75 identified horizontal drilling locations historically. A secondary asset, Manito Lake in Saskatchewan, involves exploration and drilling with potential for heavy oil development, though it remains in evaluation stages. These properties emphasize 100% operated working interests for full control over development. For the portfolio, we like the yield and also wanted to add to the energy sector and add a small cap stock. HME is debt free with $25M cash, has good growth potential, and is quite cheap on nearly all valuation metrics. Insiders are also committed at 17% ownership.