HNRC INTENDS TO BE DEBT FREE AND ACQUIRE INCOME PRODUCING ASSETS

Rhea-AI Summary

Houston Natural Resources Corp. (OTC: HNRC) announced its plan to achieve a debt-free status and continue growth in 2022. The company boasts a debt-to-equity ratio of less than 2% and current liabilities under $1.3 million. With a net asset value of $4.00 per share, it aims to acquire mature natural gas and oil properties, as well as wastewater treatment facilities. HNRC projects a target stock value between $6.00 and $10.00 based on forward earnings. The company also explores waste-to-energy opportunities to expand its portfolio.

Positive

• Debt-to-equity ratio is below 2%, indicating a strong financial position.
• Current liabilities are less than $1.3 million, supporting acquisition plans.
• Net asset value is $4.00 per share, with potential stock value projected between $6.00 and $10.00.
• Focus on acquiring income-producing assets in energy and wastewater sectors.
• Exploring waste-to-energy opportunities for portfolio diversification.

Negative

• None.

HOUSTON, Jan. 27, 2022 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) ("HNR or the Company") announced today it has a strong balance sheet to continue its aggressive growth in 2022 and intends to become debt free.

The company has a current debt- to-equity ratio of less than 2% with current liabilities less than $1,300,000 including less than $700,000 in Notes payable.

The oil industry has about a 40% debt-to-capital threshold. Above that level, debt costs increase considerably. The company has been 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 the debt levels on the balance sheet. It is such a capital-intensive industry that high levels of debt can put a strain on a company's credit ratings, weakening its ability to purchase new equipment or finance other capital projects. Poor credit ratings can also harm its ability to acquire new businesses."

In addition, Investopedia states… "Debt, when used properly, can increase shareholder returns. Having too much debt, however, leaves firms vulnerable to economic downturns and interest rate hikes. Too much debt can also increase the perceived risk with the business and discourage investors from investing more capital."

The Company's net asset value 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, & 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 industry. The focus is to acquire and manage mature natural gas and oil properties to generate cash flows 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 provide for a nationwide network for wastewater treatment.

The company is also looking at waste-to-energy ("WTE") opportunities which is the process of generating energy in the form of electricity and/or heat from the primary treatment of waste, or the processing of waste into a fuel source. WTE  is a form of energy recovery. Most WTE processes generate electricity and/or heat directly through combustion, or produce a combustible fuel commodity, 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 the acquisitions through traditional financing sources and through the sponsoring of special purpose acquisition corporations focused on energy and energy transition projects with capital of 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 through developing natural resources with state-of-the-art innovative technologies in tandem with sustainable environmental services of toxic oil field waste disposal and recycling that are environmentally safe 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. The portfolio companies include investments in information technology and healthcare.

FORWARD-LOOKING STATEMENTS:

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 of future performance or results and involve a number of risks and uncertainties.

Contact:

Houston Natural Resources Corp.
E-mail:frank@hosutonnaturalresources.com  
Phone: +1 757-707-4563

View original content:https://www.prnewswire.com/news-releases/hnrc-intends-to-be-debt-free-and-acquire-income-producing-assets-301469849.html

SOURCE Houston Natural Resources Corp.

FAQ

What is Houston Natural Resources Corp's debt-to-equity ratio?

Houston Natural Resources Corp has a debt-to-equity ratio of less than 2%.

What are the current liabilities of HNRC?

HNRC's current liabilities are less than $1.3 million.

What is the target stock value for HNRC?

The target stock value for HNRC is projected between $6.00 and $10.00 based on forward earnings.

What type of assets is HNRC looking to acquire?

HNRC intends to acquire mature natural gas and oil properties as well as wastewater treatment facilities.

Is HNRC planning to become debt-free?

Yes, HNRC announced its intention to become debt-free while continuing its growth in 2022.