Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: JEV; JROOF; JLM

Canadian Hydrogen and Energy Co. Well Positioned To Scale
Research Report

View Important Disclosures for this Article
Share on Stocktwits

Source:

Recent financial results for Jericho Energy Ventures Inc. were aligned with expectations, noted an Atrium Research report.

Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC; JLM:FSE) reported Q3 results in line with expectations, noted Atritum Research analystss Nicholas Cortellucci and Ben Pirie in a November 23 report. The company's oil and gas joint venture (JV) posted positive EBITDA based on higher commodity prices.

According to the analystss, this shows Jericho can shift capital from the low multiple oil and gas production business to fund the growth of its high multiple hydrogen technologies division.

In Q3, the JV produced 389 barrels of oil equivalent per day, with 173 attributable to Jericho. It realized strong oil, gas, and natural gas liquids pricing, though revenue declined year-over-year.

JEV ended Q3 with US$0.5 million in cash and US$3.6 million in debt. The analysts see the company's cash flow potential strengthening in 2024 as the JV plans new drilling and benefits from higher oil prices.

On the hydrogen side, the company continues to make advancements through its Hydrogen Technologies unit and minority investments. The analysts expect initial commercial orders in 2023 and potentially larger contracts in 2024 as the hydrogen industry develops.

With progress across both the traditional energy and clean hydrogen businesses, the analysts see Jericho Energy as well positioned to scale and maintain a Buy rating and CA$0.50 price target. 


Want to be the first to know about interesting Alternative - Cleantech investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Important Disclosures:

  1. Jericho Energy Ventures Inc is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Jericho Energy Ventures Inc.
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Disclosures for Atrium Research, Jericho Energy Ventures Inc., November 23, 2023

Analyst Certification Each authoring analyst of Atrium Research on this report certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated securities discussed (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the research, (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer, (iv) the analyst does not own common shares, options, or warrants in the company under coverage, and (v) the analysts adhere to the CFA Institute guidelines for analyst independence

Atrium Research Corporation (ARC) has created and distributed this report. This report is based on information we considered reliable; we have not been provided with any material non-public information by the company (or companies) discussed in this report. We do not represent that this report is accurate or complete and it should not be relied upon as such; further any information in this report is subject to change without any formal or type of notice provided. Investors should consider this report as only one factor in their investment decisions; this report is not intended as a replacement for investor’s independent judgment.

ARC is not an IIROC registered dealer and does not offer investment-banking services to its clients. ARC (and its employees) do not own, trade or have a beneficial interest in the securities of the companies we provide research services for and does not serve as an officer or Director of the companies discussed in this report. ARC does not make a market in any securities. This report is not disseminated in connection with any distribution of securities and is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. ARC does not make any warranties, expressed or implied, as to the results to be obtained from using this information and makes no express of implied warranties for particular use. Anyone using this report assumes full responsibility for whatever results they obtain. This does not constitute a personal recommendation or take into account any financial or investment objectives, financial situations or needs of individuals. This report has not been prepared for any particular individual or institution. Recipients should consider whether any information in this report is suitable for their particular circumstances and should seek professional advice. Past performance is not a guide for future results, future returns are not guaranteed, and loss of original capital may occur. Neither ARC nor any person employed by ARC accepts any liability whatsoever for any direct or indirect loss resulting from any use of its research or the information it contains.

This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Such statements involve a number of risks and uncertainties such as competition, technology shifts, market demand and the company’s (and management’s) ability to correctly forecast financial estimates; please see the company’s MD&A “Risk Factors” Section for a more complete discussion of company specific risks for the company discussed in this report. ARC is receiving a cash compensation from Jericho Energy Ventures Inc. for 12-months of research coverage.

ARC retains full editorial control over its research content. ARC does not have investment banking relationships and does not expect to receive any investment banking driven income. ARC reports are primarily disseminated electronically and, in some cases, printed form. Electronic reports are simultaneously available to all recipients in any form. Reprints of ARC reports are prohibited without permission. To receive future reports on covered companies please visit https://www.atriumresearch.ca/research or subscribe on our website.

The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.





Want to read more about Alternative - Cleantech investment ideas?
Get Our Streetwise Reports' Research Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe