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1. Company Snapshot

1.a. Company Description

Lucero Energy Corp., an independent oil company, engages in the acquisition, development, and production of oil-weighted assets primarily in the Bakken and Three Forks formations in the Williston Basin area of North Dakota.It holds interests in the Middle Bakken and Three Forks Benches One, Two, Three, and Four formations, as well as Pronghorn/Sanish and Lodgepole areas.As of December 31, 2021, the company had approximately 72.0 million barrels of oil equivalent of total proved plus probable reserves.


The company was formerly known as PetroShale Inc.and changed its name to Lucero Energy Corp.in May 2022.


Lucero Energy Corp.was founded in 1994 and is based in Calgary, Canada.

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1.b. Last Insights on LOU

Here is a ready-to-use analysis (max 90 words) of the drivers behind the recent stock performance of Lucero Energy Corp: Lucero Energy Corp's recent stock performance was driven by the announcement of its acquisition by Vitesse Energy, which is expected to be accretive to Vitesse's dividend. The company's evolution of business condition, sales, and acquisition of activity, as well as its new products and legal issues, are also seen as positive drivers.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Vitesse Energy Announces Completion of Lucero Acquisition

Mar -07

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LUCERO ENERGY CORP. ANNOUNCES COMPLETION OF ACQUISITION BY VITESSE ENERGY, INC.

Mar -07

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LUCERO ENERGY CORP. ANNOUNCES SHAREHOLDER AND COURT APPROVAL FOR PLAN OF ARRANGEMENT

Mar -07

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TSX Penny Stocks To Watch In February 2025

Feb -05

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TSX Penny Stock Opportunities To Watch In January 2025

Jan -06

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Vitesse Energy to Acquire Lucero Energy in Accretive All-Stock Transaction Supporting Increase to Vitesse’s Dividend

Dec -16

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December 2024 TSX Penny Stocks: Opportunities To Consider

Dec -06

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Lucero Energy Third Quarter 2024 Earnings: EPS: CA$0.01 (vs CA$0.02 in 3Q 2023)

Nov -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.73%)

6. Segments

Tight Oil

Expected Growth: 12%

Lucero Energy Corp.'s Tight Oil segment growth is driven by increasing demand for crude oil, improved drilling efficiencies, and enhanced oil recovery techniques. Additionally, strategic acquisitions and divestitures have optimized their asset portfolio, allowing for focused investment in high-growth areas. Furthermore, favorable oil prices and decreasing operating costs have contributed to the 12% growth rate.

Royalties

Expected Growth: 10%

Lucero Energy Corp.'s 10% royalty growth is driven by increasing oil and gas production, rising commodity prices, and strategic partnerships. Additionally, the company's focus on optimizing operations, reducing costs, and expanding its asset base through acquisitions also contribute to its growth momentum.

Shale Gas

Expected Growth: 13%

Lucero Energy Corp.'s 13% growth in Shale Gas is driven by increasing demand for clean energy, advancements in hydraulic fracturing technology, and favorable government regulations. Additionally, the company's strategic acreage positions in the Permian Basin and Eagle Ford Shale, coupled with its efficient operations and cost management, have contributed to the robust growth.

Natural Gas Liquids

Expected Growth: 11%

Lucero Energy Corp.'s 11% growth in Natural Gas Liquids is driven by increasing demand for petrochemical feedstocks, growing exports to Asia, and strategic acquisitions of acreage in the Permian Basin, coupled with operational efficiencies and cost savings from horizontal drilling and hydraulic fracturing.

7. Detailed Products

Crude Oil

Lucero Energy Corp.'s crude oil is a type of unrefined petroleum product that is extracted from the ground and refined into various petroleum products such as gasoline, diesel fuel, and jet fuel.

Natural Gas

Lucero Energy Corp.'s natural gas is a type of fossil fuel that is composed primarily of methane and is used as a clean-burning fuel for power generation, industrial processes, and heating.

Refined Petroleum Products

Lucero Energy Corp.'s refined petroleum products include gasoline, diesel fuel, jet fuel, and other petroleum-based products that are used to power vehicles, generate electricity, and provide energy for industrial and commercial applications.

Petrochemicals

Lucero Energy Corp.'s petrochemicals are used to manufacture a wide range of products, including plastics, fibers, and other chemicals.

Energy Services

Lucero Energy Corp.'s energy services include the exploration, production, and transportation of energy resources, as well as the provision of energy-related services such as energy trading and risk management.

8. Lucero Energy Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Lucero Energy Corp. operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Lucero Energy Corp.'s customers have limited bargaining power due to the company's strong market position and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Lucero Energy Corp. relies on a few key suppliers for its operations, which gives them some bargaining power. However, the company's strong relationships with its suppliers help to mitigate this threat.

Threat Of New Entrants

The energy industry is highly regulated, and new entrants face significant barriers to entry. However, Lucero Energy Corp. still faces a high threat from new entrants due to the increasing trend of renewable energy sources.

Intensity Of Rivalry

The energy industry is highly competitive, and Lucero Energy Corp. faces intense rivalry from established players. The company must continually innovate and improve its operations to stay ahead of the competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.19%
Debt Cost 13.28%
Equity Weight 99.81%
Equity Cost 13.28%
WACC 13.28%
Leverage 0.19%

11. Quality Control: Lucero Energy Corp. passed 5 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
Lucero Energy

A-Score: 4.4/10

Value: 7.0

Growth: 4.1

Quality: 6.6

Yield: 0.0

Momentum: 3.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Mexco Energy

A-Score: 4.2/10

Value: 7.1

Growth: 7.2

Quality: 7.5

Yield: 1.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Ring Energy

A-Score: 3.9/10

Value: 9.1

Growth: 3.7

Quality: 6.4

Yield: 0.0

Momentum: 1.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Gran Tierra Energy

A-Score: 3.6/10

Value: 9.8

Growth: 4.1

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Amplify Energy

A-Score: 3.2/10

Value: 8.0

Growth: 3.0

Quality: 5.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Vital Energy

A-Score: 2.9/10

Value: 9.1

Growth: 2.1

Quality: 2.4

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

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

0.42$

Current Price

0.42$

Potential

-0.00%

Expected Cash-Flows