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Investor Insights

This summary was created by AI, based on 9 opinions in the last 12 months.

Headwater Exploration Inc. (HWX-T) is being viewed favorably by experts, with a focus on its strong management team, exposure to the WCS-WTI gap, and the potential for dividend growth. The company's solid financials, high yield, and strong cash flow are attracting positive attention, with analysts predicting upside potential and a favorable risk-reward profile. With a focus on the Clearwater play and expectations for growth and profitability, HWX is seen as a promising investment opportunity in the oil and gas sector.

Consensus
Positive
Valuation
Undervalued
PAST TOP PICK
(A Top Pick May 31/23, Up 18%)

Large selloff recently after a momentum frenzy in the sector, he added. Now about a 5.5% weight for him. Targets $11 price, 51% upside. Yield is 5.5%, which will grow over time.

oil / gas
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate HWX as a TOP PICK.  Management reports production remains on target for annualized production of 20,000 boe/d for 2024 and capital has been allocated on several projects for the balance of the year.  It trades at 11x earnings and supports a 27% ROE.  Its dividend is backed by a payout ratio under 65% of cash flow, which still allows quarterly cash flow to grow.  We recommend trailing up the stop from $6.25 to $7.00, looking to achieve $9.00 -- upside potential of 20%.  Yield 5.4%

(Analysts’ price target is $9.32)
oil / gas
BUY

Checks the boxes: quality management, strong balance sheet and have decent inventories.

oil / gas
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jan 30/24, Up 20.9%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with HWX is progressing well.  To remain disciplined, we recommend trailing up the stop (from $4.75) to $6.25 at this time.  

oil / gas
TOP PICK

Great exposure to the WCS-WTI gap shrinking this year as the Transmountain becomes fully operational later this year. The 6% dividend will grow 10-15% this year, and they plan to grow overall by 50% over 2023. Strong cash flow as they expand. Interesting exploration plans. Fantastic results.

(Analysts’ price target is $8.88)
oil / gas
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

The Calgary-based oil and gas producer focuses on slow declining long-life reserves in Marten Hills and New Brunswick.  Recently reported earnings were up over 50% on the year.  It trades at 11x earnings, 2.5x book and supports a 27% ROE.  Its high dividend is supported by a payout ratio under 65% of cash flow.  We recommend setting a stop-loss at $4.75, looking to achieve $9.00 -- upside potential over 35%.  Yield 6.3% 

(Analysts’ price target is $9.18)
oil / gas
PAST TOP PICK
(A Top Pick Apr 26/23, Up 27%)

High growth, about 40% production growth in 2023. Great ROC potential. Very well run. CEO change by year's end. Lots of running room. Good scalability. Expects a takeover in 12-18 months. Yields around 5%.

oil / gas
BUY

Excellent company with best oil play in North America.
Very strong management team.
New "Fish bone" drilling technique could be very profitable.
Expecting 50% upside given current oil price.
Owns shares in company. 

oil / gas
HOLD

Trades at a premium. Proven management team. Exposure to Clearwater, the most economic play in NA. Amenable to multi-lateral drilling, and there's upside embedded in that. He sold some, but still meaningful upside. Yield is 5.8%, lots of room to increase.

oil / gas
TOP PICK

Purest Clearwater play, the most economic play in Canada. Purest CWS exposure, and he's bullish on the differential. Recent good exploration drilling. Trades at a modest premium. Yield is 6.48%, which could potentially increase by 50% this fall.

(Analysts’ price target is $8.81)
oil / gas
BUY

CEO has a great reputation. Stock's not moved too much. Nice position in Clearwater, one of the best plays in Western Canada. Moving to a dividend strategy, which will increase investor interest. Assuming oil prices hold in, dividend should be well covered with cashflow and they should be able to grow production a bit. 

Too small for him, but great choice of a smaller name that has torque.

oil / gas
TOP PICK

His theme today is leverage, nice yield, and ability to grow cash. Growing 40% production this year, 25% next year. $100M of cash, which could grow to being 20-25% of market cap. Clean balance sheet. Can tuck in land acquisitions to build inventory. In one of the hottest plays in Canada. Very strong free cashflow. Yield is 6.39%, which could grow easily to 8-9%.

(Analysts’ price target is $9.11)
oil / gas
BUY

Currently in a net cash position. 
Owns 9.9% of company.
Large producer in Clearwater (most economic play in North America).
Remarkable exploration results recently.
Very good CEO with Neil Roszell.
More inventory that market thinks.
Currently yielding ~5.5% dividend. 

oil / gas
WEAK BUY

Instead, he has a significant position in SU. Energy prices will continue strong for a protracted time. Not widely followed. If an investor knows this company really well, go ahead, as the energy sector will continue to do well.

(Analysts’ price target is $9.28)
oil / gas
PAST TOP PICK
(A Top Pick Jan 28/22, Down 6%) Pure player in the Clearwater oil play. Exploration wells not panning out. Perception that company is inventory light. Public data suggestion new wells could be better. Will continue owning shares in the company. ~5% dividend yield helping shareholders.
oil / gas
Showing 1 to 15 of 29 entries

Headwater Exploration Inc. (HWX-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 6

Stockchase rating for Headwater Exploration Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Headwater Exploration Inc. (HWX-T) Frequently Asked Questions

What is Headwater Exploration Inc. stock symbol?

Headwater Exploration Inc. is a Canadian stock, trading under the symbol HWX-T on the Toronto Stock Exchange (HWX-CT). It is usually referred to as TSX:HWX or HWX-T

Is Headwater Exploration Inc. a buy or a sell?

In the last year, 6 stock analysts published opinions about HWX-T. 5 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Headwater Exploration Inc. .

Is Headwater Exploration Inc. a good investment or a top pick?

Headwater Exploration Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Headwater Exploration Inc. .

Why is Headwater Exploration Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Headwater Exploration Inc. worth watching?

6 stock analysts on Stockchase covered Headwater Exploration Inc. In the last year. It is a trending stock that is worth watching.

What is Headwater Exploration Inc. stock price?

On 2024-05-24, Headwater Exploration Inc. (HWX-T) stock closed at a price of $7.31.