Houston Natural Resources Corp. continues on its growth trajectory with projections to substantially increase revenues and earnings in the next three years. The company’s revenues have increased by more than 200 percent to $9.5 million in the last three years with net income increasing by more than 300 percent to nearly $3 million. The company’s portfolio companies have generated more than $30 million in revenue since 2016.

The company projects total combined revenues of $23 million and $12 million in earnings. The forward earnings per share are projected to be $0.77 per share compared to $0.19 per share for 2020. The company expects second quarter earnings to be in line with the projections. The company expects the strong revenues to come from new equipment that comes online in the third quarter, internal growth and acquisitions.

According to industry research, the S&P 500 Integrated Oil and Gas Index, forward earnings and valuation as of July 26,2021 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.

The Street Now has initiated coverage of the company with a strong buy recommendation.

The company expects to complete a transaction in third or fourth quarter 2021 and anticipates the acquisition to be at least $100 million in revenue.