Last week, Brent and WTI Crude prices went on a massive run, hitting 14-year highs on the heels of sanctions based on the conflict in Ukraine. Camber Energy (NYSE: CEI) and its subsidiary Viking Energy Group, Inc. (OTCMKTS: VKIN) were among the biggest winners in the energy sector as the stocks moved on the macroeconomic news. While oil prices have come back down so too have most stocks that made runs last week. However, while most energy stocks will stabilize, there are long-term catalysts that make CEI and VKIN the two energy penny stocks investors should pay the closest attention to.
WHAT YOU NEED TO KNOW
-CEI is the majority shareholder of VKIN
-Both companies are legacy oil & gas producers
-Rising energy prices make VKIN’s upcoming revenue report likely to be a major improvement over 2020.
-CEI and VKIN have both made a shift to become ‘diversified green energy’ plays
-Many analysts are pointing to renewables as the long term answer to these energy crises
-CEI and VKIN will profit off of rising energy as well as increased emphasis on renewables making them two of the best energy stocks to watch today
E.U. CLIMATE CHIEF PUTS PUTIN IN PERSPECTIVE
“If we really want to stop long-term making Putin very rich, we have to invest in renewables and we need to do it quickly,” E.U. Climate Cheif, Frans Timmermans said earlier this year. “If you really want to make sure that you can provide stable, affordable energy to your citizens, renewables is the answer.”
CEI and VKIN ARE BUILT TO LAST
As noted, both Camber and Viking Energy are moving toward more green energy verticals with a string of impressive acquisitions and partnerships over the past 12 months. The technologies range from carbon capture to green biodiesel production to medical waste treatment. This varied approach ensures that CEI and VKIN are in a position to thrive even if oil demand dips as countries around the world work to meet climate change accords.
The US plans to achieve a 50-52 percent reduction from 2005 levels in economy-wide net greenhouse gas pollution in 2030
E.U. plans to cut emissions by 55%, it expects to reduce its natural gas consumption by more than 25% compared with 2015 levels by 2030.
The latest Russian aggression and subsequent sanctions have improved public support for these accords making them much more realistic.
The US Energy Information Administration ‘EIA’ projects global energy demand to increase 47% in the next 30 years, driven by population and economic growth.
Liquid fuel will make up 28% of global energy demand by 2050, compared with renewables at 27%. This assumes a 36% increase in liquid fuel demand and a 165% increase by renewables from 2020 levels.
CEI AND VKIN GREEN ENERGY STORY
Camber Energy, Inc. (NYSE: CEI), became VKIN’s 62% majority owner, fueling operations and acquisitions, of which there have been many.
CEI bought $11 million worth of Viking Energy (OTCMKTS: VKIN) stock early 2021. The proceeds of that transaction were then used to buy 60.5% of a Company engaged in the manufacture of industrial engines.
The proceeds of the investment were also used to fund the license from ESG Clean Energy LLC (ESG).
ESG CLEAN ENERGY
The IP license from ESG Clean Energy, LLC to generate clean energy from internal combustion engines. The technology creates clean electricity by capturing and repurposing carbon dioxide emissions from combustion engines. The technology is useful for recycling operations, nitrogen removal, microgrids, data centers, and crypto mining operations; to name a few.
Not only does the process capture carbon dioxide (CO2), it also generates numerous precious commodities for sale creating multiple revenue streams from one process. These commodities include:
Environmentally-conscious customers’ concerns are quelled by the process VKIN’s technology produces:
-Zero carbon emissions
–Distilled/de-ionized water
-UREA (NH4)
-Ammonia (NH3)
-Ethanol
-Methanol
The company also acquired a majority interest in subsidiary Simson-Maxwell, Ltd. It uses the Simson-Maxwell platform to promote the ESG Clean Energy System.
RENEWABLE GREEN BIODIESEL PRODUCTION FACILITY
Viking Energy (OTCMKTS: VKIN) has a Membership Interest Purchase Agreement in place to acquire a Renewable diesel production facility in the corporate tax-free city of Reno, Nevada. The facility is capable of producing 43 million gallons per year, according to estimates. VKIN’s biofuel could net larger margins than average biofuel producers because there is a pretreatment center at the facility allowing the company to purchase pure feedstock rather than the pricy pre-treated feedstock many companies use in the production process.
VKIN AND CEI’s LATEST ELECTRIC GRID DEAL
Most recently, Viking Energy Group, Inc. (OTCMKTS: VKIN) has purchased a controlling interest in a grid distribution line solution, known as “The Line Sentinel”. This is the latest ESG component the company has added to its already diverse green portfolio.
VKIN’s ‘Line Sentinel’ is a fully developed, patent-pending, ready-for-market proprietary Electric Transmission and Distribution Open Conductor Detection Systems. These systems detect a break in a transmission line, distribution line, or coupling failure. It immediately terminates power to the line prior to reaching the ground.
This technology improves public safety and strengthens the reliability of existing infrastructure. This can help prevent wildfires which created $148.5 billion in damage in California in 2018 alone. The value of this system is hard to put a number on.
The $21 million deal has the potential to net VKIN up to $500 million in revenues. The initial $5 million due upon closing covers the first $50 million in revenue. VKIN owes a new tranche at every additional $50 million level of revenue all the way up to $500m. That would take only 100k units sold.
MAKE SURE CEI AND VKIN ARE ON YOUR WATCHLIST
These are only a few of the two company’s green assets. The companies are also producing commodities that are projected to rise in value. This is one way you can have your energy cake and eat it too, so to speak.
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