In a business update that sent shockwaves through the market, HNR Acquisition Corp (HNRA), an independent oil and natural gas company, revealed significant developments and acquisition reports that propelled its stock to new heights. The company’s shares, which closed at $1.73 at the end of Monday’s trading session, saw a remarkable surge to $3.00 as trading commenced on Tuesday.
At the time of this publication, HNR Acquisition Corp stock (HNRA) has witnessed a surge.
HNR Acquisition Corp
Current Price: $2.81
Change : +1.08
Change (%): (62.43%)
Volume: 33.7M
Source: Tomorrow Events Market Data
The surge in stock value follows HNRA’s strategic acquisition of Pogo Resources, LLC and its subsidiary, LH Operating LLC (LHO), in a business combination finalized on November 15, 2023. The acquisition, detailed in the Super 8-K filed with the Securities and Exchange Commission (SEC) on November 21, 2023, marks a pivotal moment for HNRA’s expansion and operational portfolio.
LHO, a privately-owned entity, had been operating the Grayburg-Jackson field since early 2020, following its acquisition of the property in late 2019. Notably, the baseline production level in 2020 stood at approximately 500 barrels of oil equivalent (BOE) per day. Subsequently, LHO’s production experienced a substantial uptick, averaging 1,388 BOE per day for the nine months ending September 30, 2023. All of the company’s field production is being sold under long-term contracts to various customers in the USA.
The financials for LHO paint a positive picture, with revenues reaching $20.3 million and generating a net income of $3.9 million for the nine months ending September 30, 2023. As of September 30, 2023, LHO’s total assets amounted to $70.4 million.
With the acquisition completed, HNRA is poised to report its first consolidated financials for the fiscal year ending December 31, 2023. However, the results from the recent acquisition will only be reflected for six weeks in the fourth quarter of the fiscal year.
Crucially, all of LHO’s experienced field personnel, instrumental in the company’s production increase, have seamlessly transitioned to HNRA post-acquisition. Dean Rojas, Chief Executive Officer of HNRA, highlighted the ongoing consolidation efforts and the team’s commitment to maintaining operational excellence.
“The consolidation of the business has started, and, with the help of the prior management, our HNRA team has been engaged for months to become familiar with the operations of the field,” said Rojas. “We have completed our initial operational plan for the field and our field staff, who have worked the field for years. We have started improving the operation with continued modernization and maintenance so we can increase production. The expansion of the field with our disciplined operating philosophy should drive higher revenue and earnings. In addition, there are several analogous opportunities within the Permian Basin we are investigating with an eye to acquiring and exploiting other properties.”
Joseph V. Salvucci, Sr., Chairman of the Board, emphasized the significance of the acquisition as the foundation for future growth, stating, “HNRA has acquired an operating asset that is profitable, and is our foundation for future growth. The board and management are comprised of industry experts with many decades of operational experience at both major oil companies, as well as smaller independent entrepreneurial ventures.”
In conclusion, HNR Acquisition Corp’s robust performance and promising future, as reflected in its acquisition reports, position the company as a key player in the evolving energy landscape. As HNRA gears up to release its consolidated financials, investors are closely watching the company’s strategic moves and anticipating further developments in the dynamic energy sector.
