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Hemisphere Energy Provides Corporate Update, Declares Quarterly Dividend, and Announces 2024 Guidance
Vancouver, British Columbia--(Newsfile Corp. - January 25, 2024) - Hemisphere Energy Corporation&...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Provides Corporate Update, Declares Quarterly Dividend, and Announces 2024 GuidanceVancouver, British Columbia--(Newsfile Corp. - January 25, 2024) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (\"Hemisphere\" or the \"Company\") is pleased to provide a corporate update, announce the declaration of a quarterly dividend payment to shareholders, and deliver guidance for 2024. Corporate Update Hemisphere realized another successful year in 2023, balancing production growth with balance sheet strength and shareholder return. During the year, $17.5 million was returned to shareholders in the form of dividends ($13.1 million) and share buybacks ($4.4 million), representing an approximate 14% yield to shareholders based on the market capitalization of Hemisphere at year-end.The Company achieved record average production in the fourth quarter of 3,375 boe/d (99% heavy oil), which represents a 16% increase over the same period in 2022. This growth in production year-over-year is the combined result of Hemisphere's successful third quarter drilling program with the Company's effective enhanced oil recovery (\"EOR\") polymer flood projects. Hemisphere's annual average production for 2023 was approximately 3,100 boe/d (99% heavy oil), representing 10% growth as compared to 2022.Balance sheet strength continued to be a priority in 2023, with Hemisphere exiting the year in a cash position. Hemisphere funded all of its shareholder returns and entire $16 million capital expenditure1 program on 2023 cash flow. In addition to drilling 8 successful Atlee Buffalo wells and upgrading some of its facilities, the Company acquired over 2,500 hectares of new land in Saskatchewan and Alberta. Hemisphere has plans to drill a new prospect on some of these Saskatchewan lands in the first half of 2024, and believes it to be prospective for EOR polymer flooding. Given the significant free cash flow generated by Hemisphere's ultra-low production decline and long-life reserve asset base, the Company was able to complement its $0.025 per share quarterly base dividend with a $0.03 per share special dividend paid in the fourth quarter of 2023. This brought total shareholder returns last year to $0.13 per share in dividends. Hemisphere also invested $4.4 million into its normal course issuer bid (\"NCIB\") share buyback program t...