88 Energy (88E) AI Stock Analysis

• Market Cap: AU$24.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: N/A
• EPS Growth: 29.12%
• Country: AU
• Employees: 10
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.02
• Shares Outstanding: 1,157,350,500
• 10 Day Avg. Volume: 1,369,830
• 30 Day Avg. Volume: 1,086,866
• PEG Ratio: 0.00
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: AU$0.02 ▲(15.00% Upside)

The score is held down primarily by very weak financial performance (persistent losses, minimal revenue, and sustained cash burn), only partly offset by a debt-free balance sheet. Technicals are moderately positive with price above key moving averages and a positive MACD, while valuation is constrained by negative earnings and no dividend support.

Positive Factors

Strategic Lease Acquisition

Securing new leases adjacent to North America's largest oilfield enhances exploration potential and positions 88 Energy for long-term growth through low-CAPEX tie-backs to existing infrastructure.

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and provides flexibility for future investments, supporting long-term stability despite ongoing losses.

Strategic Divestment

Divesting Project Longhorn enhances financial position by avoiding substantial development costs, allowing focus on core projects and improving cash flow management.

Negative Factors

Persistent Losses

Ongoing and widening losses reflect deteriorating profitability, limiting the company's ability to generate internal funds for exploration and development.

Cash Burn

Sustained cash burn to fund exploration activities pressures financial resources, increasing reliance on external funding and heightening execution risk.

Equity Decline

Declining equity erodes shareholder value and reflects weak capital efficiency, potentially impacting investor confidence and future capital raising efforts.

88 Energy Business Overview & Revenue Model

Company Description

88 Energy Limited explores for oil and gas properties in the United States. It primarily holds a 75% working interest in the Icewine project, which covers an area of approximately 193,000 acres located in North Slope of Alaska, the United States; 100% working interest in the Yukon project covering an area of approximately 38,681 acres situated in the Central North Slope of Alaska; 50% working interest in Peregrine project covering an area of approximately 195,373 acres located in the NPR-A region of the North Slope of Alaska; and 100% working interest in the Umiat Oil Field project covering an area of approximately 17,633 acres situated in the immediate south of Peregrine project North Slope of Alaska. The company was formerly known as Tangiers Petroleum Limited and changed its name to 88 Energy Limited in February 2015. 88 Energy Limited was incorporated in 1996 and is based in Subiaco, Australia.

How the Company Makes Money

88 Energy Limited generates revenue primarily through the exploration and development of its oil and gas assets. The company makes money by discovering commercially viable oil and gas reserves, which it can then either sell directly or partner with larger energy companies to develop. Revenue can also be generated through the sale or farm-out of interests in its exploration acreage, allowing 88 Energy to share the costs and risks associated with exploration and development while still benefiting from potential discoveries. Additionally, the company may engage in strategic partnerships or joint ventures to enhance its exploration capabilities and financial backing, contributing to its overall earnings.

88 Energy Financial Statement Overview

Summary

88 Energy Limited faces substantial financial challenges. The income statement reveals zero or negligible revenues, significant losses, and negative margins. The balance sheet shows a strong equity position with no debt, but the persistent net losses undermine return on equity. Cash flow remains negative, reflecting operational inefficiencies and liquidity concerns, thus posing sustainability risks.

Income Statement

88 Energy Limited has consistently struggled with generating revenue, reflected in zero or negligible revenues over the years. The company has faced significant losses, with negative EBIT and EBITDA margins, indicating ongoing operational challenges. The absence of revenue growth further highlights the company's difficulties in improving its top line.

Balance Sheet

The balance sheet of 88 Energy Limited shows a relatively strong equity position with no debt, leading to a favorable debt-to-equity ratio of zero. However, the company's return on equity is concerning due to persistent net losses. The equity ratio suggests a solid asset base, but the lack of profitability poses risks to stability.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating and free cash flows over the years. While the company has managed to secure financing, the inability to generate positive free cash flow and operating cash flow reflects operational inefficiencies and potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	2.50K	4.45K	241.53K
Gross Profit	-81.11K	-79.05K	-64.23K	-60.31K	4.36M	-93.39K
EBITDA	23.87M	-31.28M	-16.04M	-73.98M	-1.13M	-8.05M
Net Income	-23.40M	-32.82M	-14.44M	-70.72M	-2.41M	-22.03M
Balance Sheet
Total Assets	122.30M	148.99M	156.53M	133.03M	145.78M	85.36M
Cash, Cash Equivalents and Short-Term Investments	8.05M	7.20M	18.18M	14.12M	32.32M	14.85M
Total Debt	0.00	0.00	0.00	0.00	0.00	20.78M
Total Liabilities	596.63K	356.79K	840.04K	1.35M	5.94M	26.45M
Stockholders Equity	121.71M	148.64M	155.69M	131.68M	139.84M	58.91M
Cash Flow
Free Cash Flow	773.45K	-28.73M	-35.29M	-188.20M	-47.44M	-46.64M
Operating Cash Flow	776.03K	-3.41M	-5.38M	-135.55M	-5.65M	-5.12M
Investing Cash Flow	-1.74M	-17.38M	-23.67M	-57.84M	3.15M	-9.34M
Financing Cash Flow	0.00	9.03M	33.09M	43.90M	19.09M	13.63M

88 Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ROG	59 Neutral	AU$16.27M	-100.00	-8.36%	―	-7.30%	―
OEL	52 Neutral	AU$19.18M	43.33	2.14%	―	-22.76%	―
88E	48 Neutral	AU$24.30M	-1.09	-17.28%	―	―	29.12%
ADX	48 Neutral	AU$20.18M	-1.71	-59.58%	―	4.41%	-49.06%
BRU	48 Neutral	AU$17.04M	-1.33	-70.94%	―	―	―

88 Energy Corporate Events

88 Energy Secures Strategic Leases on Alaska’s North Slope

88 Energy Limited has successfully secured new leases on the North Slope of Alaska, adjacent to the largest oilfield in North America. This strategic acquisition expands their operated acreage by 34,560 acres across two key areas, South Prudhoe and Kad River East. The leases are expected to enhance 88 Energy’s exploration potential, with plans for 3D seismic data acquisition and a multi-zone exploration well targeting the Ivishak Formation, known for its high-quality sandstone reservoir. This move positions the company for near-term value catalysts and longer-term growth, with opportunities for low-CAPEX tie-backs to existing infrastructure.

88 Energy Limited Announces Cessation of 3.6 Million Securities

88 Energy Limited announced the cessation of 3,600,000 securities due to the expiry of options or other convertible securities without exercise or conversion. This development may impact the company’s capital structure and could influence investor perceptions, as it reflects on the company’s strategic financial management and operational decisions.

88 Energy Advances Alaskan and Namibian Projects, Completes Strategic Divestment

88 Energy Limited reported significant progress in its Alaskan and Namibian projects for the quarter ending September 2025. In Alaska, the company advanced planning for the Franklin Bluffs-1H well at Project Phoenix and the Tiri-1 exploration well at Project Leonis. The Namibian portfolio saw a 12-month extension for PEL93 and plans for a high-resolution gravity survey. Additionally, 88 Energy completed the strategic divestment of its interest in Project Longhorn, enhancing its financial position by avoiding substantial development costs. Corporate activities included a change in leadership and the closure of a small holding share sale facility.