Cue Energy Resources Limited (CUE) AI Stock Analysis

• Market Cap: AU$80.40M
• Dividend Yield: 17.39%
• Average Volume (3M): 323.69K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.77
• Revenue Growth: -16.65%
• EPS Growth: -46.22%
• Country: AU
• Employees: 14
• Sector: Utilities
• Sector Strength: 68
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.01
• Shares Outstanding: 699,092,650
• 10 Day Avg. Volume: 410,413
• 30 Day Avg. Volume: 323,695
• PEG Ratio: -0.49
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.19
• 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

• Rating: 70 Outperform
• Price Target: AU$0.00 ▼(-100.00%Downside)

Cue Energy Resources' overall stock score is driven by strong financial performance and attractive valuation. The company showcases robust profitability and solid cash flow generation, underpinned by minimal debt. While technical analysis indicates a bullish trend, the elevated RSI suggests potential overbought conditions. The stock's high dividend yield and low P/E ratio further enhance its attractiveness.

Cue Energy Resources Limited Business Overview & Revenue Model

Company Description

Cue Energy Resources Limited (CUE) is an independent oil and gas exploration and production company. It operates primarily in the Asia-Pacific region with a focus on managing a diversified portfolio of production assets and exploration permits. The company's core activities include the exploration, development, and production of hydrocarbons, primarily oil and natural gas. CUE is committed to sustainable and responsible operations, leveraging its technical expertise to optimize resource recovery while minimizing environmental impact.

How the Company Makes Money

Cue Energy Resources Limited generates revenue primarily through the exploration, development, and production of oil and natural gas. The company's key revenue streams include the sale of crude oil and natural gas extracted from its production assets. CUE operates and holds interests in several oil and gas fields, which provide a consistent source of income through the sale of produced hydrocarbons. Additionally, the company may enter into joint ventures and partnerships to share exploration risks and costs, which can enhance its operational capabilities and revenue potential. Regulatory, market, and geopolitical factors can also influence CUE's earnings as they affect commodity prices and demand in the energy market.

Cue Energy Resources Limited Financial Statement Overview

Summary

Cue Energy Resources demonstrates a stable financial position with efficient operations and strong cash flow generation. Despite a slight decline in revenue, the company maintains robust profitability margins and a strong balance sheet with minimal debt, which positions it well for future growth. The significant free cash flow growth is a positive indicator, suggesting effective management of capital expenditures and cash resources.

Income Statement

Cue Energy Resources shows a mixed performance in its income statement. While the gross profit margin has improved over the years, reaching 60.45% in the most recent year, the net profit margin has slightly decreased to 28.57% from 29.49% the previous year. Revenue has declined by 3.77% year-over-year, which is a concern. However, the EBIT margin is strong at 50.91%, and the EBITDA margin stands at 65.25%, indicating efficient operations and cost control.

Balance Sheet

The balance sheet of Cue Energy Resources is solid with a very low debt-to-equity ratio of 0.0033, reflecting minimal financial leverage. The return on equity is healthy at 21.86%, though slightly decreased from the previous year, indicating effective use of equity to generate profits. The equity ratio is robust at 57.31%, showcasing stability with a significant portion of the company's assets financed by equity.

Cash Flow

Cash flow generation is strong, with free cash flow showing significant growth of 1300% year-over-year. The operating cash flow to net income ratio is high at 1.90, reflecting strong cash generation relative to reported profits. The free cash flow to net income ratio is also impressive at 1.37, indicating that the company is converting a large portion of its profits into cash.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	47.48M	49.66M	51.60M	44.44M	22.45M	23.92M
Gross Profit	24.45M	36.34M	23.48M	24.45M	-1.14M	9.46M
EBITDA	25.95M	32.41M	27.19M	26.97M	-4.34M	11.13M
Net Income	9.46M	14.19M	15.21M	16.07M	-12.74M	1.31M
Balance Sheet
Total Assets	118.04M	113.28M	118.00M	106.91M	56.10M	69.16M
Cash, Cash Equivalents and Short-Term Investments	17.15M	16.26M	15.24M	23.22M	17.64M	31.94M
Total Debt	271.00K	217.00K	4.08M	7.10M	197.00K	96.00K
Total Liabilities	54.09M	48.37M	53.81M	58.97M	26.18M	25.59M
Stockholders Equity	63.95M	64.91M	64.19M	47.94M	29.92M	43.56M
Cash Flow
Free Cash Flow	13.85M	19.43M	1.39M	11.07M	-11.55M	5.73M
Operating Cash Flow	22.89M	26.94M	12.65M	17.66M	-8.03M	7.40M
Investing Cash Flow	-9.10M	-7.74M	-17.63M	-19.11M	-3.52M	-1.67M
Financing Cash Flow	-21.03M	-18.05M	-3.08M	6.85M	-84.00K	-85.00K

Cue Energy Resources Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CUE, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 65.15 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CUE.

Cue Energy Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STO	75 Outperform	$24.79B	13.36	7.94%	4.27%	-7.99%	-12.27%
CUE	70 Outperform	AU$80.40M	8.52	13.84%	17.39%	-16.65%	-46.22%
ORG	70 Neutral	$18.66B	13.18	14.75%	5.52%	8.09%	-13.99%
BPT	58 Neutral	$3.00B	32.55	2.70%	6.98%	6.43%	―
Sector *	58 Neutral	AU$886.84M	4.30	-2.39%	4.95%	22.98%	-116.74%

Cue Energy Resources Limited Corporate Events

Cue Energy Reports Strong Quarter with Increased Production and Shareholder Returns

Cue Energy Resources Limited reported a strong quarter with significant financial and operational achievements. The company returned $7 million to shareholders through dividends, contributing to a total of $28 million over 18 months. Cue achieved a production rate of 1,700 boe/d and increased cash receipts by 17% to $15.3 million. The successful drilling of Mereenie field wells boosted gas production, while ongoing development activities at Mahato PSC and progress towards a Final Investment Decision on the Paus Biru project highlight Cue’s commitment to growth. The company maintains a robust balance sheet with $11.1 million in cash and no debt, positioning itself well for future development and shareholder value.

Cue Energy’s Gas Supply Agreement for Nolans Project Lapses

Cue Energy Resources Limited announced that the conditional gas supply agreement for Arafura’s Nolans rare earths project has lapsed due to unmet conditions. As a result, the Mereenie Joint Venture, in which Cue holds a 7.5% interest, will market the gas production to other customers starting in 2028, impacting the company’s sales strategy and market positioning.

Echelon Resources Updates on Arafura Gas Agreement

Echelon Resources Limited announced that its conditional Gas Sales Agreement with Arafura Rare Earths has lapsed due to unmet conditions. The Mereenie Joint Venture, which includes Echelon, has decided to re-market the gas, parting with Arafura on good terms and expressing continued support for the Nolans Project. This decision reflects a strategic focus on production and development certainty, impacting the company’s operations and market positioning.

Horizon Oil to Re-Market Gas After Arafura Agreement Lapses

Horizon Oil Limited announced that the gas supply agreement for Arafura’s Nolans rare earths project has lapsed due to unmet conditions. As a result, Horizon and its Mereenie joint venture partners will re-market the gas production intended for the Nolans project to other customers, starting in 2028, across the Northern Territory and the East Coast. This decision follows delays in Arafura’s final investment decision, impacting the project’s timeline and Horizon’s operational plans.

Central Petroleum to Re-market Gas Supply Following Lapsed Agreement

Central Petroleum Limited announced that its gas supply agreement for Arafura’s Nolan’s rare earth project has lapsed due to unmet conditions, leading to the decision to re-market the gas supply to other customers in the NT and east coast. This move highlights Central’s commitment to providing reliable long-term gas supplies, backed by proven reserves, which are crucial for customers developing major capital projects. The lapse of the agreement underscores the challenges in securing final investment decisions but also presents an opportunity for Central to strengthen its market position by addressing the urgent demand for firm gas supplies in the region.