HOUSTON, Aug. 5, 2021 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) ("HNR or the Company") has a strong balance sheet to continue its aggressive growth in 2021 with a debt- to-equity ratio of less than 2%.
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 $4.71 per share for the period ending March 31, 2021.
In addition, the Company's subsidiary Houston Natural Resources, Inc ("HNRI") has independently appraised value of $69,000,000 in proven reserves that are valued at $4.47 per share. HNR Oil Services LLC, has independently appraised value of $7,600,000 in equipment and permits that are valued a $0.49 per share.
The company currently has a total of $9.67 per share in assets. The Company intends to focus on realizing the value on the total of $9.67 per share in assets held by its subsidiaries for the benefit of the shareholders. The strategy may include asset sales, a spin-off of one or more of its subsidiaries and dividends to shareholders.
According to industry research, the S&P 500 Integrated Oil & Gas Index, forward earnings, & valuation, as of August 4, 2021, is between 8x and 14x forward earnings. This would imply a target value for HNRC of $6.16 per share and $10.78 per share based on its projected earning.
HNRC is a diversified holding company that has two subsidiaries, Houston Natural Resources, Inc ("HNRI") and Worldwide Diversified Holdings, Inc ("WDHI"). HNRI owns oil and gas properties and a waste-water treatment plant. WDHI has business operations that provide products & services in the Information Technology & Healthcare markets. HNRC anticipates up listing onto OTCQX or major exchange. The company is preparing an SEC filing to become an SEC reporting company.
About Houston Natural Resources Corp
Houston Natural Resources Corp (www.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.
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.
Houston Natural Resources Corp.
E-mail: [email protected]
Houston Texas USA.
SOURCE Houston Natural Resources Corp.