Addressing Journey's Underperformance

In February 2023, we shared a positive perspective on Journey Energy and its management team. Since we shared our perspective, Journey has missed cash flow and production guidance, seen operating expenses rise 50% above peers, delayed key power generation projects by over a year, issued dilutive debt, and increased management salaries and director fees by 82% year-over-year for the nine months ended September 30, 2024. This has resulted in Journey's stock declining 66% since February 2023.

We met with three of Journey's five independent board members to present our findings and express our concerns about the company. Our presentation was not taken seriously.

Despite this dismissive response, we still believe in the underlying value potential of Journey Energy. In the latest reserve report, Journey's assets included a reserve PDP PV-10 of $362M, power generation PV-10 of $77M, and $34M in Duvernay acreage, totaling $473M in NAV. With net debt of $53M, the current enterprise value of $179M reflects a significant discount to the company's stated asset value.

Clearly, the market thinks that Journey’s assets are worth less than their intrinsic value under the status quo. To unlock Journey's full value, change is necessary.

Below are links to our letter to Journey’s board and a walkthrough of the presentation that we shared with them outlining Journey's underperformance:

Letter to the Board

Unbridling Journey's Potential: Video Walkthrough

If you have questions or would like to learn more about Bison, please reach out to us at info@bisoninterests.com.

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