Camber Energy’s Value Proposition Increases Ahead Of Two Planned And Transformative 2023 Acquisitions ($CEI)

Camber Energy's Value Proposition Increases Ahead Of Two Planned And Transformative 2023 Acquisitions  ($CEI)

The value proposition in Camber Energy, Inc. (NYSE-Amer: CEI) in 2022 and Q1 of 2023 was already compelling. But since March, it’s gotten even stronger. In fact, milestones in the crosshairs may act more like catalysts to support significantly higher share prices. Investors apparently agree, with at least two appreciable upticks in volume suggesting the bullish thesis is not being ignored. On the contrary, it’s attracting attention.

And rightly so. Camber’s 10-K filed last month provided the CEI bulls plenty of supporting firepower. It showed comparative revenues higher, expenses lower, and only 20 million outstanding shares. But there was more good news. It showed Camber also positioned itself to maximize its bottom line growth and increase shareholder value by reducing derivative liability by 92% to $7.59 million, shrinking total liabilities by 56% to $51.82 million compared to 2021, and decreasing net loss by 89%. 

While impressive, those accomplishments are only a part of why CEI is well-positioned to attack 2023 opportunities. Investors may also be eyeing that the most potent value drivers are that CEI has at least two transactions in its crosshairs, which are more than accretive to creating sustainable shareholder value; they are expected to exponentially increase revenues. 

Video Link:

Building A Formidable Revenue-Generating Arsenal

The most near-term value driver is Camber’s plan to acquire 100% ownership of Viking Energy (OTC: VKIN), a fast-growing company providing custom energy & power solutions to commercial and industrial clients in North America. Camber already owns the lion’s share of VKIN, so it’s already contributed to growth. However, making it a wholly-owned asset increases Camber’s interest in a solid revenue-generating company that leverages significant IP and, like CEI, is on a mission to accrue additional interests to expand its stake in the United States oil and natural gas markets. Like other assets in the CEI portfolio, VKIN’s value is inherent to them being in the right sectors at the right time.

As important, they are better positioned in 2023 to exploit their potential in several developing markets. Viking shared details regarding IP rights to fully developed, patent-pending, ready-for-market proprietary Electrical Transmission and Distribution Open Conductor Detection Systems, interests in conventional oil assets in the Mid-Continent Region (USA), and maximizing an Intellectual Property License Agreement with ESG Clean Energy, LLC. That agreement leverages value inherent to its patent rights and stationary electric power generation know-how. It includes methods to capture 100% of carbon dioxide and utilize heat to produce saleable commodities (e.g., distilled water, DEF, NH3, NH4).

The better news is that more than US-based target markets are in play. Through its current majority stake, Camber will accrue value through VKIN holding an exclusive license in Canada to a patented carbon-capture system and interest inherent to intellectual property rights to a fully developed and patented Waste Treatment system using Ozone Technology. In addition to that, they can also accrue value through intellectual property rights to fully developed, patent-pending, ready-for-market proprietary Electric Transmission and Distribution Open Conductor Detection Systems. 

In other words, the growth in CEI assets is fueling its larger mission through stable positive cash flows from conventional energy and resource opportunities and interests that do more than accelerate CEI’s development; they provide tangible support for higher valuations. 

Moreover, those interests are expected to increase substantially, taking revenue growth in tow. 

Planned Acquisition Supports Bullish Analyst Models

In Q4 last year, Camber Energy announced entering into an agreement to acquire certain privately-owned companies generating $55 million in annual gross revenues. Commentary included with that update indicates steps are being taken to close that deal, including measures to protect shareholder value. Once the deal closes, it gives CEI working interests in 169 producing oil wells (producing 2000 barrels of oil per day), 174 proved non-producing wells, and 12 proved underdeveloped well locations. Of course, these interests are commodity-price dependent, which in recessionary times can be weak. Still, despite current oil and natural gas market conditions, the agreement can be a significant growth catalyst as markets recover, whether later this year or in 2024. In either case, CEI can be well-positioned to capitalize. Analysts covering Camber Energy agree.

Lead analyst at Goldman Small Cap Research models for bullish performance, making a case for CEI shares to reach $2.75 this year. That expected 69% increase is supported by his factoring in the value inherent to its planned acquisitions. Foremost is that from CEI closing its planned merger with Viking Energy Group in Q3. According to the report, the combined revenue-generating firepower provides potent energy to steepen CEI’s stock price trajectory. Though Camber is already a diversified energy equipment and services company, Goldman believes the merger, once closed, could create new and lucrative opportunities. Specifically, he expects the deal would enable Camber to capitalize on expanded target market potential by adding new revenue streams from custom energy and power systems and services, clean energy technology, and oil and gas interests.

He added that while the deal is taking more time than expected to close, accretive steps taken in 2022 and so far in 2023 do get the two closer to consummating the agreement. CEI is already a majority owner in VKIN, and both companies understand the values added. Thus, despite a delay during a challenging period for smallcap energy stocks, the deal remains on track to close within the next two quarters. Once it does, Goldman suggests that CEI will be better positioned than ever to capitalize on and maximize the revenue potential inherent to a fortified pipeline business. Other acquisitions, including Camber’s intent to acquire a $55 million revenue-generating asset, are expected to strengthen that potential.

Ahead of that, plenty supports higher valuations using inputs from CEI and VKIN. Goldman’s full-year proforma revenue forecasts for the combined company to score $31 million in 2023 revenues, surging to $42.4 million in 2024. Estimates do not include expected revenue contributions from any deal or acquisition prospect not yet in the pipeline. That’s excellent news for those considering CEI now, noting that those revenue projections support Goldman’s modeling for share prices to reach $2.75 over the next 6-9 months, resulting from a finalized merger and 4X 2024 E revenue. That multiple is based upon a review of peers in the ESG, energy, and specialty industrial equipment sectors. Still, it does not include the expected contributions from its other planned acquisitions.

Diesel Market Opportunities Also In-Play

That includes its Membership Interest Purchase Agreement to acquire a 100% interest in companies bringing a processing plant designed to produce renewable diesel into commercial operations. Once operational, the plant’s estimated production capacity is roughly 43,000,000 gallons annually. It’s a timely deal. Renewable diesel fuel, sometimes called green diesel, is a biofuel chemically the same as petroleum diesel fuel and is produced through various thermochemical processes such as hydrotreating, gasification, and pyrolysis. Renewable diesel is made from renewable feedstocks instead of crude oil and is approximately 50%-55% less carbon-intensive than traditional petroleum diesel.

Here’s more to appreciate about that interest. Global renewable energy consumption is increasing annually, a trend likely to continue as government mandates and voluntary shifts to less carbon-intensive energy sources by businesses and individuals accelerate that initiative. Keep in mind that the deal is still in the works. Camber’s obligation to complete the transaction is conditional on several items in the Membership Interest Purchase Agreement. There is no guarantee that the conditions will be satisfied. 

With that said, meeting those conditions and closing the deal could add to what’s already expected to be a transformative growth period for CEI in 2023. And keep in mind that potential is in addition to the value expected from its other revenue-generating acquisition.

Value Through A Sum Of Its Parts 

Thus, while parts of CEI can justify higher valuations, investors may be wise to look at the bigger picture. Camber Energy has indeed completed the groundwork necessary to transform into a significantly larger energy company, not only from an acquisitions perspective but also from strengthening its balance sheet to allow 2023 revenues to fall faster to the bottom line. 

Hence, it’s the totality of circumstances that drives the value proposition. And they help expose a valuation disconnect between share price and assets worth seizing. Yes, there is still work to be done before CEI benefits fully from its ambitions. However, considering they are better positioned than ever financially and fundamentally to close their planned acquisitions, the path of least resistance for CEI stock is likely higher. And with several updates expected, perhaps even a headline announcing its 100% acquisition of VKIN, that trend could start sooner than later.



Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to twelve-thousand-five-hundred-dollars cash via wire transfer by a third party to produce and syndicate content for Camber Energy, Inc.. for a period of one month ending on 04/19/23. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. 

Media Contact
Company Name: STM, LLC.
Contact Person: Michael Thomas
Email: [email protected]
Phone: 917-773-0072
Country: United States