Reason #1: Lineal Star Is Newly Acquired
It wasn’t that long ago that CEI acquired Lineal Star Holdings. In fact, the deal took place in July of this year. When it comes to acquisitions, we generally see one of two things:
- Either the acquirer relies on the aquiree to generate organic growth and bulster the balance sheet or
- the acquirer actively takes part in turning the acquiree into a high value asset.
In this particular case, the latter is true.
Since the acquisition of Lineal Star Holdings, Camber Energy has made multiple announcements about project wins and completions, and seems to be grabbing the bull by the horns each step of the way.
Reason #2: Revenue
As mentioned in the company’s press release, the client that was won back by Lineal is no small fish. In fact, it is one of the largest wholesale distributors of refined petroleum in the United States.
The company has already provided CEI with multiple projects that will not only lead to revenue now, but will lead to residual revenue as a result of service and maintenance requirements.
This is just the beginning. Should all go well with these initial projects, this customer is likely to play an integral role in revenue generation for Lineal ahead. Ultimately, that equates to a strong opportunity for revenue growth for CEI and its investors ahead.