DEBT TO EQUITY RATIO OF LESS
TX -- August 5, 2021 -- InvestorsHub NewsWire
-- Houston Natural
Resources Corp. (OTC:
HNRC) ("HNR or the Company") has a strong balance
sheet to continue its
aggressive growth in 2021
to-equity ratio of less than 2%.
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.
Investopedia… "Investors in
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
ratings, weakening its
ability to purchase new equipment or finance other capital
projects. Poor credit
also harm its ability to acquire new businesses."
"Debt, when used
properly, can increase shareholder returns. Having too much debt,
however, leaves firms vulnerable to economic downturns
Too much debt can also increase the perceived risk with the
business and discourage investors from investing more
The Company's net
asset value is $4.71 per
share for the period ending March
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
The company currently
has a total
of $9.67 per
share in assets. The Company intends
to focus on realizing the value on
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
diversified holding company that
Houston Natural Resources, Inc ("HNRI")
Diversified Holdings, Inc ("WDHI").
gas properties and a
WDHI has business operations
that provide products & services in the Information Technology
& Healthcare markets. HNRC
major exchange. The company is preparing an SEC filing to become an
Houston Natural Resources Corp
Natural Resources Corp (www.HoustonNaturalResources.com)
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
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.
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.
Natural Resources Corp.