Bruce Campbell (2)
Southern Energy Corp
SOU-X
BUY ON WEAKNESS
Jan 19, 2023
More volatile than he expected. Using enhanced technology to recover gas from existing fields. Production rate's pretty low, but gets a premium on price. Growing, with nice profile over next few years.
It is a lot different from others in the space. Based in Mississippi it has a new technology to enhance recovery and is getting premium prices. Just raised money, enough to drill 15 to 20 new wells before needing more which may not be needed since cash flows will increase. A growth opportunity in a strong natural gas market. Under the radar because of size. Buy 2 Hold 0 Sell 0 (Analysts’ price target is $2.04)
Focused in Southern USA in natural gas. Applying technology to old natural gas plays(horizontal drilling). Close to LNG ports which allows for excellent pricing.. Growing production which is rare in energy(will triple production next year). Has owned stock for a long time.
This is a natural gas company in the Mississippi area of the U.S. It gets a premium to Nymex because of its location. It uses a new technology for the exploration of existing drill areas. Could double production next year
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