Houston Natural Resources Corp Raises its Revenue Guidance for 2022

Issues Dividend Policy Update

HOUSTON, Aug. 31, 2022 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) ("HNR or the Company") announced today that it expects to report strong results for the remainder of 2022, projecting $20 million in revenue and $10m in EBITDA for the year ending December 31,2022. The third quarter is projected to be $5 million in revenue and $2.5m in EBITDA. The nine months through September 30, 2022, is projected to be $13m in revenue and $7m in EBITDA. The increase is due to an increase in revenues from its portfolio companies.

Furthermore, the company recently announced a letter of intent to acquire Cunningham Energy, which would result in a significant increase in the company's assets for the year ending December 31,2022.

Financial Summary Through June 30, 2022

The company's revenues for the first six months of 2022 have increased by more than 34 % to $8,687,641 from $7,614,534 for the first six months of 2021. The company's earnings for the first six months of 2022 have increased by more than 37% to $5,627,641 from $4,105,594 for the first six months of 2021. The company's net assets have increased to $74,111,221 over the last year. The company's net asset value is $2.43 per share for the period ending June 30, 2022.

Dividend Policy

The company has identified two sources of potential dividends for its shareholders.

The company sponsored a successful $86 million NYSE listing of an energy focused special purpose acquisition corporation during the first quarter of 2022. This will result in a dividend to its shareholders after completion of the business combination and the lock up period has expired. 

The company is evaluating sponsoring other energy focused special purpose acquisition corporation and expects a second energy focused special purpose to be completed in the third quarter. The company is evaluating sponsoring other energy focused SPACS, including traditional oil and gas, renewable energy, and waste to energy opportunities. This would also result in an additional dividend to the shareholders.

The company expects to realize at least $3m on each of its SPAC investments to be added to its existing earnings in 2023. This could provide shareholders with more than $0.30c per share in annual dividends.

The Company announced that, effective June 30, 2022, the Board of Directors has approved the transfer of the non-energy investments of $53,307,324 in exchange for 10,661,465 common shares of Worldwide Diversified Holdings, Inc at $5.00 per share. The Company received the requisite stockholder approval granting the Board of Directors the authority to affect the transfer of the assets and approve the dividend to the shareholders. 

Worldwide Diversified Holdings, Inc ("WDHI") has audited statements and will provide for a listing later this year. The dividend record date will be announced during the third quarter and will automatically be distributed to the Company's shareholders. The company is anticipating an initial trading price of $5.00 per share to provide for the Company to list on a major exchange and receive additional capital. The transaction will provide for a dividend of $1.75 of WDHI shares for every one share of HNRC held by the shareholder on the record date.    

About Houston Natural Resources Corp

Houston Natural Resources Corp (www.hnrcholdings.com) (OTC:HNRC). The company is a diversified holding company with business operations and investments. The portfolio companies include investments in energy, information technology and healthcare.

FORWARD-LOOKING STATEMENTS:

This 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.

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SOURCE Houston Natural Resources Corp.