Download PDF

1. Company Snapshot

1.a. Company Description

Headwater Exploration Inc., a junior resource company, engages in the exploration, development, and production of petroleum and natural gas in the Western Canadian Sedimentary Basin and onshore in New Brunswick.It holds interests in the McCully Field located to the northeast of Sussex, New Brunswick; the Clearwater play located in the Marten Hills, Alberta; and the Frederick Brook shale gas prospect located in New Brunswick.The company was formerly known as Corridor Resources Inc.


and changed its name to Headwater Exploration Inc.in March 2020.Headwater Exploration Inc.


is headquartered in Calgary, Canada.

Show Full description

1.b. Last Insights on HWX

Headwater Exploration's recent performance was driven by its strong financial results, with CA$514.293 million in revenue and CA$153.207 million in net income. The company's exposure to the Clearwater formation, one of Canada's most economic plays, is a key factor. BMO Capital raised its price target to C$11 from C$9.50, citing an Outperform rating. The company's quarterly dividend declaration also supports shareholder value. Its role in the Canadian energy sector has drawn investor attention, with a focus on its growth prospects.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Card image cap

Headwater Exploration (TSX:HWX) Valuation Check After Mixed Annual Results And Recent Share Price Volatility

Mar -09

Source:

Card image cap

Is It Too Late To Consider Headwater Exploration (TSX:HWX) After A 123% One-Year Surge?

Mar -09

Source:

Card image cap

HEADWATER EXPLORATION INC. ANNOUNCES YEAR END 2025 OPERATING AND FINANCIAL RESULTS, OPERATIONS UPDATE AND DECLARES QUARTERLY DIVIDEND

Mar -05

Source:

Card image cap

Headwater Exploration price target raised to C$11 from C$9.50 at BMO Capital

Jan -20

Source:

Card image cap

Headwater Exploration Announces Production Update

Jan -16

Source:

Card image cap

HEADWATER EXPLORATION INC. ANNOUNCES 2025 RESERVES, FOURTH QUARTER PRODUCTION RESULTS AND OPERATIONS UPDATE

Jan -16

Source:

Card image cap

Headwater Exploration (TSX:HWX) Valuation After 2026 Growth Plan, Dividend Commitment and Capital Discipline Update

Dec -06

Source:

Card image cap

HEADWATER EXPLORATION INC. ANNOUNCES 2026 BUDGET AND OPERATIONS UPDATE

Dec -03

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.51%)

6. Segments

Heavy Oil

Expected Growth: 4.5%

Growing demand for heavy oil from refineries, increasing investment in specialized refining processes, and rising production from Headwater Exploration Inc. are expected to drive the market growth.

Royalties

Expected Growth: 4.5%

Increasing demand for oil and gas, coupled with Headwater Exploration Inc.'s strategic property acquisitions, is expected to drive royalties revenue growth. Rising energy prices and improved operational efficiencies will also contribute to the growth.

Natural Gas

Expected Growth: 4.8%

Increasing demand for clean energy, government incentives for natural gas infrastructure development, and growing industrial applications drive the growth of the natural gas market.

Natural Gas Liquids

Expected Growth: 4.8%

Increasing demand for petrochemicals, growing use of natural gas liquids as a cleaner energy source, and expansion of shale gas production are driving the growth of Natural Gas Liquids market from Headwater Exploration Inc.

Gathering, Processing and Transportation

Expected Growth: 5.2%

Increasing demand for natural gas, growth in shale gas production, and infrastructure development drive the Gathering, Processing and Transportation segment's growth.

7. Detailed Products

Light Oil

Headwater Exploration Inc. produces high-quality light oil, a type of crude oil with a low density and sulfur content, ideal for refining into various petroleum products.

Natural Gas

Headwater Exploration Inc. extracts natural gas, a fossil fuel composed primarily of methane, used as a clean-burning fuel for power generation and heating.

Natural Gas Liquids (NGLs)

Headwater Exploration Inc. produces NGLs, a group of hydrocarbons that include ethane, propane, butane, and pentane, used as a feedstock for petrochemicals and fuels.

Crude Oil Blending

Headwater Exploration Inc. offers crude oil blending services, combining different types of crude oil to create customized blends for refineries.

8. Headwater Exploration Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Headwater Exploration Inc. is medium due to the availability of alternative energy sources.

Bargaining Power Of Customers

The bargaining power of customers for Headwater Exploration Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Headwater Exploration Inc. is medium due to the presence of multiple suppliers and moderate switching costs.

Threat Of New Entrants

The threat of new entrants for Headwater Exploration Inc. is high due to the relatively low barriers to entry and the attractiveness of the industry.

Intensity Of Rivalry

The intensity of rivalry for Headwater Exploration Inc. is high due to the presence of several competitors and the high stakes of the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.84%
Debt Cost 5.72%
Equity Weight 98.16%
Equity Cost 12.09%
WACC 11.97%
Leverage 1.87%

11. Quality Control: Headwater Exploration Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Headwater Exploration

A-Score: 7.8/10

Value: 5.0

Growth: 9.7

Quality: 8.2

Yield: 8.0

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Parex Resources

A-Score: 7.6/10

Value: 8.8

Growth: 6.1

Quality: 6.6

Yield: 10.0

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Freehold Royalties

A-Score: 7.4/10

Value: 5.2

Growth: 5.4

Quality: 7.4

Yield: 9.0

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Cardinal Energy

A-Score: 7.2/10

Value: 6.3

Growth: 4.2

Quality: 6.6

Yield: 10.0

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Dorchester Minerals

A-Score: 6.8/10

Value: 5.3

Growth: 5.8

Quality: 9.2

Yield: 10.0

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
VAALCO Energy

A-Score: 5.8/10

Value: 7.7

Growth: 6.7

Quality: 5.7

Yield: 9.0

Momentum: 1.0

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.1$

Current Price

12.1$

Potential

-0.00%

Expected Cash-Flows