Questerre Energy to Acquire Brazilian Shale Oil Firm PX Energy

The latest update is out from Questerre ( (TSE:QEC) ).

Questerre Energy Corporation has announced a definitive agreement to acquire 100% of PX Energy, a Brazilian shale oil production and refining company. This acquisition is expected to enhance Questerre’s operational base and expertise, supporting its oil shale and biofuel technology advancements. The transaction involves issuing 65 million common shares of Questerre, with performance milestones tied to future cash flow and equity financing achievements. The acquisition is subject to various approvals and conditions, including regulatory and shareholder approvals. The strategic move is anticipated to strengthen Questerre’s oil shale footprint and provide robust margin potential due to PX Energy’s established operations and favorable cost structures.

Spark’s Take on TSE:QEC Stock

According to Spark, TipRanks’ AI Analyst, TSE:QEC is a Neutral.

The overall stock score is primarily impacted by financial performance concerns, particularly negative net income and declining margins. While technical analysis suggests positive short-term momentum, valuation issues with a negative P/E ratio and lack of dividend yield weigh heavily on the score. Improving profitability is crucial for enhancing the stock’s appeal.

To see Spark’s full report on TSE:QEC stock, click here.

More about Questerre

Questerre Energy Corporation is a company operating in the energy sector, focusing on oil shale production and refining. It aims to expand its operations and expertise in the industry, particularly in advancing oil shale resources in Jordan.

Average Trading Volume: 27,383

Technical Sentiment Signal: Buy

Current Market Cap: C$128.6M

For an in-depth examination of QEC stock, go to TipRanks’ Overview page.