HNRC INTENDS TO BE
DEBT FREE AND ACQUIRE INCOME PRODUCING
ASSETS
HOUSTON, TX -- January 27, 2022 --
InvestorsHub NewsWire -- 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
