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Australis Oil & Gas Ltd. (AU:ATS)
ASX:ATS

Australis Oil & Gas (ATS) AI Stock Analysis

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Australis Oil & Gas

(Sydney:ATS)

Rating:46Neutral
Price Target:
Australis Oil & Gas Ltd. exhibits significant financial and operational challenges, highlighted by declining revenues and negative profitability. The technical analysis shows stagnation, indicating lack of market momentum, while the valuation metrics suggest a heavily undervalued stock with no immediate income potential. These factors collectively result in a low overall score, emphasizing the need for strategic improvements.

Australis Oil & Gas (ATS) vs. iShares MSCI Australia ETF (EWA)

Australis Oil & Gas Business Overview & Revenue Model

Company DescriptionAustralis Oil & Gas Ltd. (ATS) is an Australian-listed oil and gas exploration and production company. The company focuses on the acquisition, development, and production of oil and gas reserves, primarily in the United States. Australis Oil & Gas Ltd. is committed to leveraging its technical expertise to maximize the potential of its oil and gas assets, with a particular emphasis on the Tuscaloosa Marine Shale (TMS) in Louisiana and Mississippi.
How the Company Makes MoneyAustralis Oil & Gas Ltd. generates revenue primarily through the exploration, development, and production of oil and gas reserves. The company's key revenue streams include the sale of crude oil and natural gas extracted from its operations in the Tuscaloosa Marine Shale (TMS). Australis targets areas with significant hydrocarbons in place and employs advanced drilling techniques to increase production efficiency and output. The company’s earnings are influenced by factors such as global oil and gas prices, production rates, and operating costs. Partnerships with other oil and gas industry players may also provide Australis with additional revenue opportunities, although specific partnerships are not detailed.

Australis Oil & Gas Financial Statement Overview

Summary
Australis Oil & Gas Ltd. faces challenges with declining revenues and persistent losses, affecting its income statement score. While the balance sheet reflects some stability in equity, the cash flow position needs improvement to support long-term operations. The company should focus on reversing revenue declines, enhancing profitability, and optimizing cash flows to strengthen its financial position.
Income Statement
45
Neutral
The company has experienced declining revenues over the past few years, with revenue decreasing from $75.5M in 2019 to $29.8M in 2024. Gross profit margin has also deteriorated, and the net profit margin remains negative, indicating ongoing losses. Despite an improvement in EBITDA margin in the latest year, the overall profitability remains weak due to significant EBIT losses.
Balance Sheet
60
Neutral
Stockholders' equity has decreased over time but remains positive, which is a stable factor. The debt-to-equity ratio has improved slightly, suggesting better financial leverage management. However, the equity ratio has declined, indicating a higher proportion of liabilities relative to total assets.
Cash Flow
55
Neutral
Free cash flow has shown improvement in recent years, moving from negative to positive territory. However, free cash flow growth is inconsistent, and the operating cash flow is not sufficient to cover net losses. The cash flow situation suggests a need for better operational efficiency to ensure sustainability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue29.82M29.61M33.47M37.67M31.11M
Gross Profit5.26M3.52M5.42M14.15M10.49M
EBITDA3.18M-8.32M8.86M3.65M-119.68M
Net Income-13.36M-15.31M2.84M-3.21M-181.87M
Balance Sheet
Total Assets103.05M70.78M133.28M124.93M114.33M
Cash, Cash Equivalents and Short-Term Investments10.07M5.51M11.57M12.73M6.07M
Total Debt13.72M8.16M18.05M23.70M27.06M
Total Liabilities29.03M25.76M35.90M39.87M38.27M
Stockholders Equity74.02M77.96M97.38M85.05M76.07M
Cash Flow
Free Cash Flow4.46M1.62M5.83M1.91M4.23M
Operating Cash Flow4.57M4.54M9.63M4.19M9.63M
Investing Cash Flow523.49K-2.76M-3.81M-1.61M-5.26M
Financing Cash Flow-1.16M-5.22M-7.56M3.97M-21.05M

Australis Oil & Gas Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUATS
46
Neutral
$9.20M-16.71%-2.29%45.56%
AUVEN
44
Neutral
AU$8.35M-41.54%27.03%58.18%
44
Neutral
AU$1.40B-6.68-23.02%6.54%5.33%-26.92%
AUGAS
41
Neutral
AU$8.64M-9.81%-73.68%
AUPGY
39
Underperform
AU$19.43M-45.97%0.69%-30.00%
AUGGE
38
Underperform
AU$5.64M-5.86%3.34%64.29%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ATS
Australis Oil & Gas
0.01
>-0.01
-9.09%
AU:VEN
Vintage Energy Ltd.
0.01
0.00
0.00%
AU:GGE
Grand Gulf Energy Limited
AU:GAS
State Gas Ltd.
0.02
-0.07
-77.78%
AU:PGY
Pilot Energy Limited
0.01
-0.01
-50.00%

Australis Oil & Gas Corporate Events

Australis Oil & Gas Seeks Partners for Tuscaloosa Marine Shale Project
Jun 10, 2025

Australis Oil & Gas Ltd has released updated asset information as part of its strategy to attract partners for its Tuscaloosa Marine Shale project. The company is actively engaging with potential partners to explore various partnership models, which could significantly impact its operational capabilities and market positioning.

Australis Oil & Gas Reports Successful AGM Resolutions
May 22, 2025

Australis Oil & Gas Limited announced the successful passing of all six resolutions at its Annual General Meeting. Key resolutions included the adoption of the remuneration report, re-election of directors, issuance of performance rights, and renewal of proportional takeover provisions, indicating strong shareholder support and strategic alignment for future operations.

Australis Oil & Gas Focuses on Strategic Asset Management Amid Market Challenges
May 22, 2025

During the 2025 Annual General Meeting, Australis Oil & Gas Limited highlighted its efforts to balance asset control with financial management and third-party engagement. Despite challenges from macroeconomic issues and reduced industry confidence, the company remains committed to delivering value and achieving its objectives.

Australis Oil & Gas Issues New Securities to Boost Market Position
May 1, 2025

Australis Oil & Gas Limited announced the issuance of 17,555,844 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX). This move is part of an employee incentive scheme, indicating the company’s efforts to align employee interests with corporate growth and enhance its market position.

Australis Oil & Gas Reports Q1 2025 Results Amid Operational Challenges
Apr 23, 2025

Australis Oil & Gas Limited reported a decrease in sales volume and revenue for the first quarter of 2025, attributed to weather-related operational disruptions. Despite these challenges, the company maintained a stable financial position with reduced debt and a cash balance of $5.6 million. Australis continues to seek partnerships for developing the TMS, emphasizing the region’s potential in a maturing industry environment with scarce quality inventory.

Australis Oil & Gas Announces 2025 Annual General Meeting Details
Apr 22, 2025

Australis Oil & Gas Limited has announced the details for its 2025 Annual General Meeting (AGM), scheduled for May 22, 2025, at the REIWA Building in Subiaco, WA. The meeting will be conducted in a physical format, with resolutions voted upon by poll. Shareholders are encouraged to participate either by attending in person or by submitting proxy votes in advance. The company has provided instructions for voting and submitting questions ahead of the AGM, emphasizing the importance of shareholder engagement in the decision-making process.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 08, 2025