Hidden Treasures #5
The Permian Basin's Unpolished Gem
Welcome back to Hidden Treasures, where we unearth fantastic companies that might just be your next brilliant investment! In the bustling heart of North America's most prolific energy basin, a relatively new contender is making some serious waves, yet it is on very few investor's radar.
In this series, I review companies which are off the beaten path, and have been overlooked by the market. I am also building what I call the Hidden Treasure Fund - a portfolio comprised solely of the companies reviewed in this series. This way I have my own money on the line, demonstrating my confidence in all the companies I review.
The company we will be looking at today:
Offers a very substantial dividend yield of 7.39%
Is trading significantly below estimates of its fair value
Increased Revenue 72% YoY in 2024
Has attracted huge interest from massive institutional investors and insiders (~75% Institutional Ownership and ~23% Insider Ownership).
You’re probably wondering what the catch is. Is this some sort of value trap? How could it possibly be so cheap? I’ll tell you right now it is not a value trap. As for how it is so attractively valued, let’s take a look: