Sign In  |  Register  |  About Pleasanton  |  Contact Us

Pleasanton, CA
September 01, 2020 1:32pm
7-Day Forecast | Traffic
  • Search Hotels in Pleasanton

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Camber Energy Inc.’s Growth In 2023 Can Be Exponential With Planned Acquisition Of A $55 Million Revenue Generating Asset ($CEI)

Camber Energy Inc.'s Growth In 2023 Can Be Exponential With Planned Acquisition Of A $55 Million Revenue Generating Asset  ($CEI)

Camber Energy, Inc. (NYSE-Amer: CEI) scored massive investor attention on Monday, with shares jumping over 26% on 3X its average volume. And that happened for excellent reasons. In addition to completing a share consolidation, CEI announced its intention to close an accretive acquisition expected to add $55 million to its revenue streams. That's not all. To ensure that value earned is value kept, CEI also announced hiring Shareholder Intelligence Services, LLC as part of its overall efforts to help identify and combat potential short selling of its stock and protect the interests of its shareholders. That initiative may be helpful sooner than later, especially with its potential acquisition likely utilizing the buying power of treasury shares in combination with cash.

Remember, the proactive measures to protect shareholder value do more than support stock prices; it comforts asset sellers that the compensation taken will be less volatile and not preyed upon by illegal trading activities. That can help keep a floor in the stock price and add leverage to the CEI bargaining team. Additionally, with its cap table adjusted and subsidiary interests continuing to capitalize on U.S. and overseas revenue-generating opportunities, income to shares could generate higher multiples for CEI stock. With a $55 million acquisition in its crosshairs and only about 22.2 million shares outstanding, that's a probable scenario.

Asset Interests Strengthen Value Proposition

Still, while that planned deal adds plenty of value-creating firepower, it's far from being the only value driver. CEI also maximizes value from current assets that are already accelerating a growth-oriented diversified business strategy. Perhaps the most significant contributor so far comes through its majority-owned subsidiary interest in Viking Energy (OTC: VKIN), a fast-growing company providing custom energy & power solutions to commercial and industrial clients in North America. Further benefits accrue from the value inherent to its interests in United States oil and natural gas assets. 

And they aren't limited to the U.S. Markets. Through its majority-owned subsidiary reach, which CEI plans to make wholly-owned, Camber benefits from subsidiary interests holding an exclusive license in Canada to a patented carbon-capture system, interest inherent to intellectual property rights to a fully developed, patented Waste Treatment system using Ozone Technology, and additional asset interests benefits CEI through intellectual property rights to fully developed, patent-pending, ready-for-market proprietary Electric Transmission and Distribution Open Conductor Detection Systems. In other words, CEI accrues value on several levels, each contributing to creating sustainable shareholder value. 

Moreover, stable positive cash flows already in play from conventional energy and resource opportunities and interests position CEI well to drive its interests and subsequent valuation upward through a diverse portfolio of innovative, clean energy technologies. As noted, much of that potential appreciation could come through the already-mentioned Viking Energy Group. Camber Energy, Inc. owns a majority of the issued ordinary shares of VKIN, which creates, in addition to those already listed, value from being a leading manufacturer and supplier of industrial engines, power generation products, services, and custom energy solutions. They also hold substantial I.P., with VKIN recently updating investors about a fully developed, patent-pending, ready-for-market proprietary Waste Treatment system using Ozone Technology. 

There's more. Viking also shared details regarding I.P. rights to fully developed, patent-pending, ready-for-market proprietary Electrical Transmission and Distribution Open Conductor Detection Systems, interests in conventional oil assets in the Mid-Continent Region (USA), and leveraging an Intellectual Property License Agreement with ESG Clean Energy, LLC regarding its patent rights and know-how related to stationary electric power generation, including methods to capture 100% of carbon dioxide and to utilize heat to produce saleable commodities (e.g., distilled water, DEF, NH3, NH4).

Tangible Value Drivers With Inherent Attributes

The combined contributions from CEI's interests are valuable and, more importantly, from an investors standpoint, position them well to execute its diversified growth strategy. Still, while assets in hand provide rev-gen momentum, what's in store could add appreciably to CEI's growth spurt. During Q4/22, Camber Energy announced entering into an agreement to acquire certain privately-owned companies generating $55 million in annual gross revenues. Once finalized, the deal will give CEI working interests in 169 proved producing oil wells (producing 2000 barrels of oil per day), 174 proved non-producing wells, and 12 proved underdeveloped well locations. Of course, these interests are oil-price dependent, which in recessionary times can be weak. Still, despite current oil market conditions, the agreement can be a significant catalyst as markets recover in 2023. Assets in the ground can be untapped but enormous contributors to the balance sheet.

In January, CEI announced entering a Membership Interest Purchase Agreement to acquire a 100% interest in companies bringing a processing plant designed to produce renewable diesel into commercial operations. Once operational, the plant's estimated production capacity is expected to be roughly 43,000,000 gallons per year. It's a timely deal. Renewable diesel fuel, sometimes called green diesel, is a biofuel chemically the same as petroleum diesel fuel and is produced through various thermochemical processes such as hydrotreating, gasification, and pyrolysis. Renewable diesel is made from renewable feedstocks instead of crude oil and is approximately 50%-55% less carbon-intensive than traditional petroleum diesel. 

Here's good news related to that interest: global renewable energy consumption is increasing annually, which is likely to continue as governments mandate and businesses and individuals voluntarily shift to less carbon-intensive energy sources. Keep in mind, though, that the deal is still open. Camber's obligation to complete the transaction is conditional on a number of items set out in the Membership Interest Purchase Agreement, and there is no guarantee the conditions will be satisfied. With that said, meeting those conditions and closing the deal could be a transformative moment for CEI. 

Milestones Reached Into Catalysts

While investors would embrace that closing, it's essential to recognize the totality of contributing assets that can make CEI a much larger company in 2023. in fact, with many milestones reached in 2022, catalyst opportunities are in play this year. And despite depressed oil prices possibly affecting near-term revenue-generating opportunities, that market will correct higher on a single headline indicating that global economic growth is again accelerating. In other words, lower oil prices could be enhancing CEI's value proposition.

Still, patience is a virtue when it comes to energy market investment considerations. And sometimes, the best success is earned by those trading ahead of the pack to capitalize on valuation disconnects created by short-term dynamics. CEI, at discounted prices, is a company to consider. While shares may trade in tandem with commodities, they certainly have a diversified portfolio of interests that can maximize opportunities in markets not so directly related to oil, especially those inherent to its VKIN interests. That makes CEI an attractive growth stock investment candidate. 

Yes, monetizing the entirety of its potential will take time to happen. But as subsidiary interests continue to contribute to a shared ambition of creating sustainable shareholder value, milestones reached can indeed become bullish catalysts. With that in mind and news likely in the queue, Camber Energy is a value play worth considering.

 

 

Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to twelve-thousand-five-hundred-dollars cash via wire transfer by a third party to produce and syndicate content for Camber Energy, Inc.. for a period of one month ending on 04/19/23. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

Media Contact
Company Name: STM, LLC.
Contact Person: Michael Thomas
Email: contact@primetimeprofiles.com
Phone: 917-773-0072
Country: United States
Website: https://primetimeprofiles.com/


Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photography by Christophe Tomatis
Copyright © 2010-2020 Pleasanton.com & California Media Partners, LLC. All rights reserved.