To put it mildly, 2021 was a year of ups and downs for investors of diversified energy and power solutions company Camber Energy (NYSEAMERICAN:CEI). To be honest, CEI stock holders went on a wild, months-long roller-coaster ride.
That’s how it often goes in the energy sector, especially when you’re dealing with low-priced stocks. Profiting in the long run requires nimble timing and deep due diligence.
As we’ll see, CEI stock ended 2021 on a low note. However, the stock’s price history shows returns of 100% or even more are a distinct possibility.
Just as importantly, Camber Energy has a portfolio of assets which should appeal to a multitude of forward-thinking investors. Whether you’re interested in tried-and-true oil-and-gas assets or more speculative green-energy markets, it’s worth your time to drill down to Camber’s true value proposition.
CEI Stock at a Glance
Chances are pretty good that some Reddit traders may have been involved when CEI stock rallied from $1 to $2 back in January 2021. That was a powerful run-up, no doubt. Yet it paled in comparison to what happened in the fall.
In late September, believe it or not, CEI stock catapulted from 66 cents to a 52-week high of $4.85. This just goes to show how quickly a low-priced stock can move.
Fast-forward to late December, and the Camber share price was back below $1. Some momentum-focused traders might see the glass as half-empty, but there’s another way of looking at the situation.
It’s possible that CEI stock traders are reloading for the next buying spree. With or without Reddit’s help, another swift rally could be right around the corner.
A Balanced Approach to Camber Energy
By learning more about Camber Energy’s growth strategy, we can discern a well-considered, prudent and diversified approach to energy-focused revenue generation.
With a balanced approach, Camber seeks to “acquire a majority interest in assets or entities with current revenue streams and realistic upside potential.”
Camber is already aggressively pursuing this strategy. The company holds majority interests in multiple oil and gas fields, which are primarily located in Texas and Louisiana.
The main idea here is to sell commodities at a premium to West Texas Intermediate (WTI) crude oil and Henry Hub natural gas prices. This is due to Camber Energy’s superior asset quality and proximity to the Gulf Coast.
Impressively, Camber Energy controls around 145 conventional producing oil and gas wells across 30 counties and parishes. Furthermore, the company boasts more than 30 proved drilling prospects and access to more than 900 square miles of 3D seismic data.
This approach resulted in Camber Energy generating $40.27 million in 2020 revenues from existing assets — not too shabby.
A Major Departure
At the same time, Camber’s credo is “Accelerating into the Curve,” which seems to imply ambitions of innovation. It’s one thing for a company to say that it’s accelerating. In Camber Energy’s case, the company is going beyond words and taking decisive action.
Specifically, Camber’s subsidiary, Viking Energy Group, has agreed to acquire a 100% interest in a group of companies developing the commercial operations of a processing plant located in Reno, Nevada.
What’s special about this plant is that it’s designed to produce renewable diesel fuel. In other words, it’s a major departure — and hence, a diversification — from Camber’s other assets.
The press release provides a concise explanation of what makes renewable diesel fuel different from traditional fossil fuels:
“Renewable diesel fuel, sometimes called green diesel, is a biofuel that is chemically the same as petroleum diesel fuel … Renewable diesel is made from renewable feedstocks instead of crude oil.”
The main part of the plant is already 95% complete. Once it’s operational, its estimated production capacity will be a whopping 43 million gallons per year.
The Takeaway on CEI Stock
Clearly, Camber’s story as a groundbreaking energy business is still being written. The CEI stock price might be near its low point, but that’s what should make the stock attractive to risk-tolerant investors.
So, don’t hesitate to add Camber Energy to your watch list. For a balanced mix of old-school and new-generation fuel sources, this is an investment opportunity that shouldn’t be missed.
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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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