Alvopetro Energy (ALVOF)(ALV:CA)
Results On Recently-Initiated Company Meet Expectations, Dividend Increase Sooner Than Expected
Alvopetro Energy Ltd is a Canada based resource company engaged in the exploration, acquisition, development, and production of hydrocarbons in Brazil. The company holds interests in the Cabure and Gomo natural gas assets, two oil fields (Bom Lugar and Mae-da-lua) and seven other exploration assets in the Reconcavo basin onshore Brazil.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
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Alvopetro reported fourth quarter and 2021 results that were very much in line with our modeling. Production volumes for 2021 were 2,432 BOE/d versus 1,950 last year and slightly above our 2,370 estimate. Revenues of $35.0 million were in line with our $36.7 million estimate and up more than 200% versus 2020 revenues of $11.3 million. Funds flow from operations was $24.6 million versus our $22.7 million estimate and up 290% from 2020 levels of $6.2 million. All in all, it was a very good quarter and year for the company, albeit not unexpected.
The board raised the annual dividend 33% to $0.32 per share, sooner than we had expected. In our initiation report last week, we highlighted the tremendous amount of free cash flow that ALVO will be generating due to an increase in the price it will receive for gas sales. We indicated we believe the company would raise the dividend level that it set last fall. However, we did not expect the board …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.