ENERGY PLAY: Verde Bio (VBHI) – An Insightful Look at a Unique Oil and Gas Company
As investors examine sectors and opportunities for timely investments, energy is always of interest. The S&P finished 2022 with record gains in its energy sector as market returns tumbled. However, cautious investors may remain hesitant as the sector rallies, due to recent market turmoil, inflationary pressures, and hesitation around when the next “shoe will drop.”
One interesting play in the energy space is an emerging oil and gas company, Verde Bio Holdings, Inc. (VBHI). Despite its current size, VBHI boasts growth potential due to its unique strategy in the space. VBHI is a mineral rights and acquisitions specialist acquiring interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the United States. The company is revenue-producing, with a portfolio of over 400 wells across 7 states, and 24 operators in 8 reservoirs.
Today, the company announced its engagement with a New York based investment banking firm that will act as advisor, lead underwriter, and deal manager for any future public offering and simultaneous up-listing as well as highlighting and exposing VBHI to the broader based investment community.
In a relatively short timeframe, VBHI management has transformed a company with significant debt to a viable company with a clean balance sheet and is capitalizing on its strategy by increasing its opportunistic acquisitions and playing both sides of oil and gas pricing. When commodity prices are high, investors benefit from the resulting rising share prices. When prices are low, VBHI utilizes its “boots on the ground” sourcing to acquire under-the-radar assets, at advantageous pricing. Investors may find this a good energy hedge in the space.
To further this concept, Founder and CEO Scott Cox recently stated, “With oil and gas commodity prices still trending at elevated levels, new oil and gas wells on our properties equates to more revenues for VBHI and for its investors. It does not require any additional investment by VBHI, as the mineral and royalty owner. We have been and continue to be diligent in buying properties at the right-price and in the right areas, thus the Company and its investors reap the benefits of the rise in commodity pricing as well as the continued development of our acreage.”
As the company continues to grow, investors may want to keep their eyes on a high margin and low capital cost company, in the emerging energy space.
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