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New Zealand Oil & Gas Limited
(Sydney:ECH)
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Rating:67Neutral
Price Target:
AU$0.38
▲(11.76% Upside)
Action:Reiterated
Date:03/31/26
The score is driven primarily by constructive technical momentum (price above major moving averages and positive MACD). Financial performance is improving but remains mixed due to thin net profitability, low ROE, and uncertain cash-flow quality. Valuation is tempered by a negative P/E despite a modest dividend yield.
Positive Factors
Improved free cash flow
A ~55% YoY improvement in free cash flow is a durable strength: it increases financial flexibility to fund distributions, cover capital needs, and invest in portfolio opportunities without relying on external financing. Strong FCF supports long-term resilience and strategic optionality.
Negative Factors
Operating cash flow uncertainty
Operating cash flow reported as zero reduces confidence in the sustainability of reported free cash flow and earnings quality. It suggests cash generation may rely on non-recurring items or investment realizations rather than repeatable operating receipts, raising structural cash-conversion risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow
A ~55% YoY improvement in free cash flow is a durable strength: it increases financial flexibility to fund distributions, cover capital needs, and invest in portfolio opportunities without relying on external financing. Strong FCF supports long-term resilience and strategic optionality.
Read all positive factors
New Zealand Oil & Gas Limited (ECH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$78.38M
Dividend Yield6.72%
Average Volume (3M)12.33K
Price to Earnings (P/E)9.8
Beta (1Y)-0.21
Revenue Growth30.05%
EPS Growth614.71%
CountryAU
Employees15
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.04
Shares Outstanding223,950,840
10 Day Avg. Volume30,454
30 Day Avg. Volume12,331
Financial Highlights & Ratios
PEG Ratio-2.14
Price to Book (P/B)0.59
Price to Sales (P/S)0.69
P/FCF Ratio1.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
New Zealand Oil & Gas Limited Business Overview & Revenue Model
Company Description
Echelon Resources Limited is an energy firm dedicated to the exploration, development, and production of oil and gas resources across New Zealand, Australia, and Indonesia. The company's operations encompass the output and sale of various hydrocar...
How the Company Makes Money
NZO’s earnings are primarily generated through returns on its investment portfolio rather than through direct sales of physical products or fee-for-service operations. Key sources of income typically include (1) dividends and distributions receive...
New Zealand Oil & Gas Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2021 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 165.80M | 124.19M | 92.87M | 83.81M |
| Gross Profit | 66.74M | 122.89M | 94.14M | 84.15M |
| EBITDA | 89.46M | 53.56M | 31.91M | 36.58M |
| Net Income | 13.55M | 3.48M | 3.93M | 17.16M |
Balance Sheet | ||||
| Total Assets | 333.42M | 323.75M | 332.64M | 282.36M |
| Cash, Cash Equivalents and Short-Term Investments | 38.10M | 39.63M | 42.29M | 64.59M |
| Total Debt | 40.16M | 51.57M | 53.00M | 0.00 |
| Total Liabilities | 147.78M | 155.24M | 157.76M | 119.95M |
| Stockholders Equity | 159.32M | 144.78M | 155.44M | 148.65M |
Cash Flow | ||||
| Free Cash Flow | 26.14M | 51.91M | 33.57M | 22.28M |
| Operating Cash Flow | 60.77M | 0.00 | 0.00 | 0.00 |
| Investing Cash Flow | -36.71M | -37.64M | -67.35M | -63.58M |
| Financing Cash Flow | -34.89M | -22.92M | 36.82M | 24.75M |
New Zealand Oil & Gas Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | AU$80.86M | 11.35 | 12.05% | 13.04% | 12.55% | -25.19% | |
67 Neutral | AU$78.38M | 9.81 | 2.32% | 6.72% | 30.05% | 614.71% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
56 Neutral | AU$45.17M | 10.00 | 11.28% | ― | 29.92% | 6000.00% | |
53 Neutral | AU$178.91M | -35.71 | -0.67% | ― | ― | -149.12% | |
43 Neutral | AU$16.29M | -1.80 | -35.17% | ― | ― | 64.71% | |
42 Neutral | AU$131.55M | -30.34 | -4.27% | ― | ― | -16.67% |
* Energy Sector Average
AU:ECH
New Zealand Oil & Gas Limited
0.35
<0.01
0.57%
AU:BRU
Buru Energy
0.01
>-0.01
-45.45%
AU:COI
Comet Ridge Ltd
0.09
-0.05
-37.14%
AU:CUE
Cue Energy Resources Limited
0.12
<0.01
6.48%
AU:CVN
Carnarvon Energy Limited
0.10
-0.02
-13.04%
AU:CTP
Central Petroleum Limited
0.06
<0.01
13.21%
New Zealand Oil & Gas Limited Corporate Events
O.G. Group Sells Major Cue Energy Stake to Horizon Oil
Jul 3, 2026
New Zealand Oil Gas-linked entities, collectively referred to as the O.G. Group Holders, have ceased to be substantial shareholders in Cue Energy Resources Limited following the disposal of their stake. The group accepted Horizon Oil Ltd’s ...
Echelon exits Cue stake and becomes major Horizon Oil shareholder
Jul 3, 2026
Echelon Resources Limited has completed the divestment of its stake in Cue Energy Resources following Horizon Oil’s off-market takeover, receiving a mix of cash and scrip and fully exiting its Cue shareholding. In turn, Echelon has become a ...
Echelon Boosts Balance Sheet with Cue Stake Sale to Horizon Oil
Jun 26, 2026
Echelon Resources Limited has completed the settlement of its sale of 139,885,879 shares in Cue Energy Resources to Horizon Oil, receiving approximately A$15.7 million in cash proceeds. The company plans to use most of the funds to repay existing ...
Echelon Resources Resets Revenue Base With New Gas Contracts and Cue Exit
Apr 29, 2026
Echelon Resources reported a 6.5% quarter-on-quarter decline in production to 380,648 barrels of oil equivalent for the March 2026 quarter, but highlighted a step change in revenue as legacy gas contracts roll off and are replaced by higher-priced...
Echelon backs Horizon takeover bid for Cue Energy after panel ruling
Apr 14, 2026
Echelon Resources Limited has accepted Horizon Oil’s off-market takeover offer for all remaining Cue Energy Resources shares it holds or controls, excluding those covered by an existing pre-bid agreement. The decision follows the Takeovers P...
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.