Alvopetro Energy (ALV.V)

ALV is quite cheap on valuation, especially considering the 8.43% yield. The dividend was last raised in March 2025, but a 2c special dividend was just declared (ex dividend Dec. 31). 12-month payout ratio is 35% and the balance sheet is net-debt-free with $5M net cash. With $39M in annual cash flow we would see the dividend as sustainable (but no dividend is guaranteed, and the sector is more volatile than most). Earnings and cash flow bounce around with commodity prices, but consensus calls for very good growth in 2026. Production has been good, andthe Q3 showed record production. Insiders own 9.5% and have bought this year. We think it looks good and it is priced very well. Its small size and sector do add risk, and we would take this under consideration in sizing a position. 
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This was a spin out from a deal that Petrorubiales did about 6 months ago. Often these spin outs get dumped because people want to own the larger company. This is trading below cash and some nice prospects. Likelihood of success by the drill bit is pretty high.