Metgasco Ltd (MEL) AI Stock Analysis

• Market Cap: AU$1.03M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -9.10%
• EPS Growth: 80.11%
• Country: AU
• Employees: 3,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.07
• Shares Outstanding: 36,742,275
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.55
• Price to Book (P/B): -56.81
• Price to Sales (P/S): 67.96
• P/FCF Ratio: -196.35
• 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: 42 Neutral
• Price Target: AU$0.03 ▼(-10.00% Downside)

The score is primarily driven by weak financial performance, including persistent losses, negative equity, and strained cash flows. Technical signals are mildly negative but not capitulatory, offering limited support. Valuation does not offset the risk due to a negative P/E and no dividend yield data.

Positive Factors

Strategic asset base in Cooper Basin

Concentrated assets in the Cooper Basin imply access to a mature Australian gas province, supporting multi-year production potential and lower exploration risk versus frontier plays. This geographic focus underpins predictable resource development and long-term supply optionality.

Stable buyer channels via gas sales agreements

Long-term sales agreements with utilities and industrial buyers create predictable demand and revenue visibility, insulating operations from spot-price volatility and supporting planning for production, investment and debt servicing over multiple quarters to years.

Partnership/JV option to share development costs

Ability to pursue JVs reduces capital intensity and execution risk for development projects, enabling scale-up without sole-borne funding. Structurally, this preserves cash, accelerates resource appraisal, and leverages partner technical capabilities over the medium term.

Negative Factors

Negative equity and weak solvency

Negative equity indicates liabilities exceed assets, constraining financial flexibility and increasing refinancing or covenant risk. Persisting negative equity can force dilutive capital raises or asset sales, impairing long-term investment capacity and strategic options.

Negative operating and free cash flow

Sustained negative operating and free cash flows undermine the firm's ability to fund operations, capital expenditure and service debt internally. Over months, this pressures liquidity, may necessitate external financing, and limits capability to pursue growth or cushion commodity cycles.

Persistent negative margins and operating losses

Negative gross and EBITDA margins show core operations are loss-making and lack scale or cost efficiency. Without sustained margin improvement, profitability will remain elusive, increasing reliance on external capital and reducing resilience to lower commodity prices or cost overruns.

Metgasco Ltd Business Overview & Revenue Model

Company Description

Metgasco Ltd (ASX: MEL) is an Australian energy company focused on the exploration and development of natural gas resources, primarily in the Cooper Basin region of South Australia. The company engages in the production of natural gas and is involved in various stages of gas development, including exploration, appraisal, and production. Metgasco aims to contribute to the energy sector by providing sustainable and reliable natural gas solutions.

How the Company Makes Money

Metgasco generates revenue primarily through the sale of natural gas produced from its exploration and production activities. The company's revenue model is centered on the extraction and commercialization of natural gas, where it sells gas to domestic markets and potentially to export markets. Key revenue streams include sales agreements with utility companies and other industrial consumers, which provide a steady income. Additionally, Metgasco may engage in joint ventures or partnerships with other energy companies to share development costs, enhance exploration capabilities, and expand its resource base, thereby contributing to its overall earnings. Factors such as market demand for natural gas, pricing trends, and operational efficiencies also play significant roles in the company's financial performance.

Metgasco Ltd Financial Statement Overview

Summary

Metgasco Ltd faces significant financial challenges across all verticals. The income statement reflects ongoing losses and operational inefficiencies, while the balance sheet shows financial instability with negative equity and high leverage. Cash flow issues further compound these problems, highlighting the need for strategic restructuring and improved financial management to ensure long-term viability.

Income Statement

Metgasco Ltd has experienced significant challenges in its income statement metrics. The company reported negative gross profit and net profit margins, indicating a lack of profitability. Revenue growth has been volatile, with a notable increase in the most recent year, but this is overshadowed by substantial losses at the EBIT and EBITDA levels. These factors highlight ongoing operational difficulties and a need for strategic improvements.

Balance Sheet

The balance sheet reveals a concerning financial structure, with negative stockholders' equity and a high debt-to-equity ratio, indicating financial instability. The return on equity is positive due to negative equity, which is misleading as it reflects significant losses. The equity ratio is also negative, further emphasizing the company's weak financial position and potential solvency risks.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Although the free cash flow to net income ratio is positive, it results from significant net losses rather than operational efficiency. Overall, cash flow management appears to be a critical area needing attention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.16M	2.16M	2.37M	475.84K	0.00	0.00
Gross Profit	-12.31K	-177.28K	1.14M	-286.00K	-861.00	-1.29K
EBITDA	-103.44K	-1.25M	-11.78M	-1.34M	-6.11M	-1.18M
Net Income	-3.27M	-3.27M	-13.20M	-1.53M	-6.11M	-1.18M
Balance Sheet
Total Assets	9.76M	9.76M	9.16M	18.05M	17.28M	7.58M
Cash, Cash Equivalents and Short-Term Investments	1.12M	1.12M	880.61K	642.16K	3.64M	731.64K
Total Debt	4.30M	4.30M	2.66M	771.41K	0.00	0.00
Total Liabilities	12.35M	12.35M	9.45M	6.78M	6.98M	683.89K
Stockholders Equity	-2.58M	-2.58M	-291.79K	11.27M	10.30M	6.89M
Cash Flow
Free Cash Flow	-2.79M	-746.97K	-2.33M	-7.56M	-6.13M	-5.54M
Operating Cash Flow	-651.81K	-651.81K	-282.74K	-1.37M	2.85M	-986.92K
Investing Cash Flow	-2.01M	-2.01M	-2.05M	-6.19M	-8.81M	-2.41M
Financing Cash Flow	2.90M	2.90M	2.57M	4.56M	9.03M	3.80M

Metgasco Ltd 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%
SHE	51 Neutral	AU$4.79M	―	-9.49%	―	-16.79%	-205.26%
BUY	45 Neutral	AU$4.68M	―	-30.63%	―	-32.65%	-66.67%
IPB	44 Neutral	AU$5.97M	-25.00	-7.32%	―	―	90.70%
GLL	43 Neutral	AU$6.29M	-1.72	-1481.88%	―	―	36.96%
MEL	42 Neutral	AU$1.03M	-0.25	―	―	-9.10%	80.11%

Metgasco Ltd Corporate Events

Metgasco Extends Repayment Date on GC1 Convertible Loan to June 2026

Metgasco Ltd has secured an extension to the repayment date of its convertible loan agreement with Glennon Small Companies Ltd (GC1), pushing the due date back six months from 31 December 2025 to 30 June 2026 on unchanged terms. The extension provides Metgasco with additional financial flexibility and time to meet its obligations under the facility, supporting the company’s capital management and potentially easing short‑term funding pressures as it progresses its energy projects.

The most recent analyst rating on (AU:MEL) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Metgasco Ltd stock, see the AU:MEL Stock Forecast page.

Metgasco Extends Commitment Deadline for Sale of Odin and Vali Gas Interests to Vintage

Metgasco Ltd has updated the timetable for its planned divestment of its 25% non‑operated interests in the Odin and Vali gas field joint ventures to Vintage Energy Ltd, extending Vintage’s deadline to commit to the acquisition and, if needed, obtain shareholder approval by one month to 31 January 2026. The company confirmed that the final completion date for the transaction remains no later than 31 March 2026 and that its Extraordinary General Meeting will proceed as scheduled on 14 January 2026, signalling continued progress on the asset sale that could reshape its portfolio and capital allocation once completed.

The most recent analyst rating on (AU:MEL) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Metgasco Ltd stock, see the AU:MEL Stock Forecast page.

Metgasco Ltd Announces Extraordinary General Meeting and Digital Communication Shift

Metgasco Ltd has announced an Extraordinary General Meeting scheduled for January 14, 2026, in Perth, WA. The company is encouraging shareholders to opt for electronic communications to reduce administrative costs, providing access to meeting materials online. This move reflects a broader industry trend towards digital transformation and cost efficiency, potentially impacting shareholder engagement and operational transparency.

Metgasco Ltd to Sell Gas Field Interests to Vintage Energy

Metgasco Ltd has entered into a Petroleum Title Sale Agreement with Vintage Energy Ltd to sell its 25% non-operated interest in the Odin and Vali Gas Fields. The sale, valued at $5.9 million, is subject to shareholder approval and certain conditions, marking a significant shift in Metgasco’s asset portfolio and strategic focus.

Vintage Energy Secures 25% Stake in Southern Flank Ventures

Vintage Energy Limited has entered into a formal Sale Agreement with Metgasco Limited to acquire Metgasco’s 25% stakes in the Southern Flank gas joint ventures ATP 2021 and PRL 211. The transaction, valued at $5.9 million, is contingent upon certain conditions being met, which were outlined in a previous announcement. This acquisition is expected to enhance Vintage Energy’s position in the gas industry by expanding its interests in strategic joint ventures.

Metgasco Ltd Announces Director’s Interest Change Following Capital Consolidation

Metgasco Ltd has announced a significant change in the director’s interest in securities, specifically involving Michael Glennon. The change is due to a consolidation of capital on a 50 for 1 basis, as approved by shareholders, which has resulted in a reduction of the number of securities held by Mr. Glennon. This adjustment reflects a strategic move by the company to streamline its capital structure, potentially impacting its market positioning and shareholder interests.

Metgasco Ltd Completes Capital Consolidation

Metgasco Ltd, a company listed on the Australian Securities Exchange under the code MEL, has completed a consolidation of its issued capital. The consolidation, approved at the company’s Annual General Meeting, involved converting every fifty shares into one share, affecting both ordinary shares and options. This restructuring aims to streamline the company’s capital structure, with new holding statements dispatched to security holders. Normal trading on a T+2 settlement basis will resume on 9 December 2025.

Metgasco Ltd Secures Strong Shareholder Support at AGM

Metgasco Ltd, an energy company listed on the Australian Securities Exchange, held its Annual General Meeting on November 26, 2025, where several resolutions were passed. Key resolutions included the adoption of the remuneration report, election and re-election of directors, approval of a 10% placement facility, consolidation of capital, and ratification of prior issue of placement shares. All resolutions were carried with significant majority votes, indicating strong shareholder support for the company’s strategic decisions.

Metgasco Ltd Expands Production in Cooper Eromanga Basin

Metgasco Ltd has announced the production status of its key projects in the Cooper Eromanga Basin. The Odin Field, which began production in September 2023, has been further expanded with Odin-2 coming online in October 2024. Additionally, the Vali Field has been producing via Vali-1 since February 2023. These developments are significant for Metgasco’s operational growth and position in the energy market, potentially enhancing its production capacity and market presence.

Vintage Energy to Acquire Metgasco’s Stakes in Southern Flank Joint Ventures

Vintage Energy Limited, an operator in the gas industry, has announced a significant move to reform its Southern Flank joint ventures by acquiring Metgasco’s 25% stakes in ATP 2021 and PRL 211. This strategic acquisition aims to accelerate value creation from the Vali and Odin gas fields, which hold substantial uncontracted gas reserves. Vintage is also considering acquiring Bridgeport’s 25% stakes in the same joint ventures, with plans to introduce new joint venture partners or raise equity capital to fund these transactions. The initiative is expected to enhance Vintage’s market position and operational focus on production and economic returns.

Metgasco Ltd Announces Sale of Gas Field Interests

Metgasco Ltd has entered into a conditional agreement to sell its 25% interest in the Odin and Vali Gas Fields to Vintage Energy Ltd. The transaction, valued at $5.9 million, is contingent upon Vintage securing necessary funding and completing a purchase of Bridgeport’s interest in the fields. This sale marks a significant shift in Metgasco’s operations, potentially impacting its market focus and stakeholder engagements. The completion of the transaction is subject to various approvals and conditions, including shareholder and ministerial consents.

Metgasco Ltd Requests Trading Halt Amid Potential Asset Disposal

Metgasco Ltd has requested a trading halt on its securities as it prepares to make an announcement regarding a potential asset disposal transaction. The halt will remain in effect until either the announcement is made or normal trading resumes on November 18, 2025. This move indicates a significant operational decision that could impact Metgasco’s market position and stakeholder interests.

Metgasco Ltd Reports Revenue Decline Amid Production Uplift Efforts

Metgasco Ltd reported a decrease in sales revenue and production for the quarter ending September 2025, primarily due to interruptions from the Production Uplift Program (PUP) and the absence of liquids liftings. The PUP, aimed at enhancing gas production in the Odin and Vali fields, showed modest improvements, with further results anticipated in the December quarter. The company is also exploring oil prospectivity in ATP2021, with ongoing farm-out discussions. Despite the current challenges, Metgasco is focused on improving production rates and exploring new prospects to enhance its market positioning.

Metgasco Ltd Announces Security Consolidation

Metgasco Ltd has announced a security consolidation involving its ordinary shares and several options with varying expiration dates. This reorganization is set to commence trading on a deferred settlement basis from November 28, 2025, with a record date of December 1, 2025, and an issue date of December 8, 2025. The consolidation aims to streamline the company’s securities, potentially impacting its market position and shareholder value.

Metgasco Ltd Announces 2025 AGM with a Push for Digital Communication

Metgasco Ltd has announced its Annual General Meeting (AGM) scheduled for November 26, 2025, at their Perth office. The company is encouraging shareholders to opt for electronic communication to reduce administrative costs, with meeting materials available online. This move towards digital communication reflects a broader industry trend of cost efficiency and environmental responsibility, potentially enhancing shareholder engagement and operational efficiency.

Metgasco Reports Interim Results of Production Uplift Project Phase 2

Metgasco Ltd has announced interim results from the second phase of its Production Uplift Project in the Vali gas field, reporting a total raw gas production of 2.4 MMscfd. The company is encouraged by the initial results from the Toolachee Formation in Vali-2, despite challenges in Vali-1, and anticipates further operations at Vali-3 in November. The ongoing project aims to enhance production rates and assess the potential of the Toolachee Formation, with implications for increased output and operational efficiency.

Vintage Energy Reports Interim Results of Production Uplift Program

Vintage Energy Ltd, in collaboration with Metgasco Ltd and Bridgeport (Cooper Basin) Pty Ltd, is progressing with the second phase of its Production Uplift Program in the Southern Flank gas fields, focusing on the Toolachee Formation in the Vali gas field. The interim results indicate some gas flow from the Toolachee Formation, though stable production has not yet been established. The Vali-2 well shows promising signs of increased gas flow once residual liquids are cleared, while Vali-3 is preparing for further dewatering operations. Production from the Southern Flank fields continues at a rate of 2.4 MMscf/d, with Odin contributing significantly.