HNRC INTENDS TO BE DEBT-FREE AND ACQUIRE INCOME-PRODUCING ASSETS
HOUSTON, January 27, 2022 /PRNewswire/ — Houston Natural Resources Corp. (OTC: HNRC) (“HNR or the Company”) today announced that it has a strong balance sheet to continue its aggressive growth in 2022 and intends to be debt free.
The company has a current debt ratio of less than 2% with current liabilities of less than $1,300,000 of which less than $700,000 in notes payable.
The oil industry has a debt threshold of around 40%. Above this level, the cost of debt increases significantly. The company was able to use its low debt ratio to acquire equipment and is now well positioned to make future acquisitions.
According to Investopedia… “Investors in the oil and gas industry should keep an eye on balance sheet debt levels. It is a capital-intensive industry that high levels of debt can put a strain on ratings. a company’s credit rating, impairing its ability to purchase new equipment or finance other capital projects.Poor credit ratings can also affect its ability to acquire new businesses.
Additionally, Investopedia states… “Debt, when used correctly, can increase shareholder returns. Having too much debt, however, makes companies vulnerable to economic downturns and interest rate hikes. Debts can also increase perceived risk with the business and discourage investors from investing more capital.”
The net asset value of the Company is $4.00 per share for the period ending September 30, 2021.
According to industry research, the S&P 500 Integrated Oil & Gas Index, forward earnings and valuation between 8x and 14x forward earnings. This would imply a target value for HNRC of between $6.00 per share and $10.00 per share based on its projected earnings.
The company intends to continue to focus on acquiring companies in the energy sector. The focus is on acquiring and managing mature oil and gas properties to generate cash flow and provide stability and growth for the long-term benefit of our stakeholders.
This is in addition to the company acquiring additional wastewater treatment facilities and technologies to improve the provision of a nationwide wastewater treatment network.
The company is also exploring opportunities for waste-to-energy (“WTE”) which is the process of generating energy in the form of electricity and/or heat from the primary treatment of waste, or the transformation of waste into a source of fuel. WTE is a form of energy harvesting. Most WTE processes generate electricity and/or heat directly through combustion, or produce a fuel such as methane, methanol, ethanol or synthetic fuels. In addition to traditional energy opportunities, the company is also evaluating renewable energy projects.
The Company intends to finance acquisitions through traditional financing sources and through sponsorship of special purpose acquisition companies focused on energy and energy transition projects with capital between $50 million and $150 million.
About Houston Natural Resources Corp.
Houston Natural Resources Corp (HoustonNaturalResources.com) (OTC: HNRC). The Company is dedicated to increasing shareholder value by developing natural resources with cutting-edge innovative technologies in tandem with sustainable environmental oilfield toxic waste disposal and recycling services that are environmentally friendly and socially responsible.
About Worldwide Diversified Holdings, Inc.
Worldwide Diversified Holdings, Inc. (www.wdhinc.net). The company is a diversified holding company with business operations and investments. Portfolio companies include investments in information technology and healthcare.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees. performance or results and involve a number of risks and uncertainties.
Houston Natural Resources Corp.
Telephone: +1 757-707-4563
SOURCEHouston Natural Resources Corp.