Camber Energy Inc (NYSEAMERICAN: CEI) is flying early on in the trading session this morning, trading on gains of more than 17% in the pre-market hours. The gains come after the company announced a pipeline project win. Here’s what’s going on:
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CEI Stock Rockets After Pipeline Project Win
In a press release issued early this morning, Camber Energy announced that its recently acquired subsidiary has won a new project. The subsidiary, Lineal Industries, has been awarded a new contract from a large oil and gas player in the United States.
CEI said that under the terms of the agreement, the project will surround the reconstruction of about 2,000 lineal feet of 20-inch gas pipeline. This includes a complete road and creek crossing.
The project will take place in Pennsylvania and comes with a budget of $3.9 million. The company plans on starting the project immediately and completing it within the next 90 days.
In a statement, Craig Crawford, President of the CEI subsidiary, Lineal Industries, had the following to offer:
This is an exciting addition to our pipeline of business, with immediate positive results for Lineal. The ability to swiftly deploy our safe and efficient workforce to projects of this size to major customers is exactly why Camber Energy acquired Lineal and how we are creating value for Camber.
This News Is Huge
The news released by Camber Energy proved to be overwhelmingly positive. However, this news is about more than a single, $3.9 million project. The truth of the matter is that the Lineal Industries acquisition was announced what seems like just a few trading sessions ago.
Within a very short period of time, CEI has already started to see the fruits of this acquisition. As I’ve mentioned in previous articles, the deal between Lineal and Camber will likely lead to substantial revenue growth, and today’s project announcement goes to show just how quickly this substantial revenue growth can take place.
All in all, the news today proved to be a reminder of just how big this deal is; validation that the money spent to make it happen was a strong move. All in all, with Lineal now under its belt, CEI is an investment opportunity that’s hard to ignore.
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