Otto Energy Limited (OEL) AI Stock Analysis

• Market Cap: $19.18M
• Dividend Yield: N/A
• Average Volume (3M): 3.37M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• Revenue Growth: -22.77%
• EPS Growth: 96.05%
• Country: AU
• Employees: 8
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 4,795,010,000
• 10 Day Avg. Volume: 6,418,300
• 30 Day Avg. Volume: 3,371,545
• PEG Ratio: -0.28
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 185.92
• 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

• Rating: 52 Neutral
• Price Target: ―

Otto Energy Limited's overall score is primarily driven by its mixed financial performance, where strong equity and debt-free status are offset by revenue instability and net losses. Technical analysis indicates a neutral position with limited momentum, and valuation metrics highlight profitability challenges with a negative P/E ratio. The absence of earnings call data and corporate events further limits positive factors influencing the score.

Otto Energy Limited Business Overview & Revenue Model

Company Description

Otto Energy Limited, together with its subsidiaries, operates as an oil and gas exploration and production company in North America. The company's principal projects include its 50% interest in the South Marsh Island 71 project. Its projects portfolio also comprises 37.5% working interest in Lightning, Matagorda County Texas; and 16.7% working interest in Green Canyon 21 lease in the Gulf Mexico. The company was formerly known as Ottoman Energy Limited and changed its name to Otto Energy Limited in August 2006. Otto Energy Limited was incorporated in 2004 and is based in Adelaide, Australia.

How the Company Makes Money

Otto Energy Limited generates revenue primarily through the sale of oil and gas extracted from its exploration and production activities. The company invests in exploration projects to discover new reserves and develop existing fields, which are then monetized through partnerships and sales agreements. Otto Energy may also engage in joint ventures and partnerships with other energy companies to share resources and risks associated with exploration and production. Factors contributing to its earnings include the global demand for oil and gas, commodity prices, and the company's ability to efficiently manage its operations and production costs.

Otto Energy Limited Financial Statement Overview

Summary

Otto Energy Limited demonstrates mixed financial health characterized by revenue instability and ongoing net losses, impacting profitability. The company's strong equity position and absence of debt provide financial resilience, yet asset and equity declines present challenges. Cash flow management exhibits variability, highlighting potential risks in sustaining positive cash generation.

Income Statement

Otto Energy Limited has faced significant revenue volatility with a general declining trend from 2022 to 2024. The company's gross profit margin decreased from 2023 to 2024, impacting its financial stability. Although EBIT was positive in recent years, the company has experienced consistent net losses, indicating challenges in profitability.

Balance Sheet

The company maintains a strong equity position with no total debt as of 2024, reflecting prudent financial management. However, the decreasing total assets and equity since 2022 suggest potential challenges in asset growth and capital management. The equity ratio remains strong, bolstering the company's financial stability.

Cash Flow

Otto Energy's free cash flow showed improvement in the latest period, supported by positive operating cash flow. However, the company has experienced significant fluctuations in free cash flow over the years, which may indicate inconsistencies in cash generation and investment stability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
27.55M	30.53M	49.70M	55.93M	40.40M	34.35M
	Gross Profit
14.19M	15.92M	27.64M	38.18M	22.77M	-853.26K
	EBIT
-6.22M	-448.00K	18.27M	31.23M	17.48M	-7.93M
	EBITDA
316.81K	-870.00K	27.13M	38.30M	5.46M	11.64M
	Net Income Common Stockholders
-2.10M	-2.52M	-10.42M	21.39M	-603.26K	-2.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.67M	60.71M	39.63M	44.10M	25.61M	24.04M
	Total Assets
53.94M	82.09M	91.32M	104.99M	81.69M	100.62M
	Total Debt
18.88M	0.00	1.95M	2.83M	13.86M	27.19M
	Net Debt
9.21M	-60.63M	-36.89M	-36.09M	-928.40K	3.15M
	Total Liabilities
23.68M	12.08M	18.54M	24.35M	28.55M	35.77M
	Stockholders Equity
30.26M	70.01M	72.78M	80.64M	53.15M	64.85M
Cash Flow		Free Cash Flow
103.16K	11.70M	3.09M	19.92M	5.10M	-25.87M
	Operating Cash Flow
3.66M	11.70M	25.48M	20.67M	20.42M	-1.08M
	Investing Cash Flow
-3.92M	10.18M	-23.31M	13.71M	-15.39M	-24.73M
	Financing Cash Flow
10.73K	0.00	-3.42M	-12.76M	-12.36M	39.31M

Otto Energy Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OEL, the sentiment is Positive. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.68 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:OEL.

Otto Energy Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$7.23B	3.16	-4.49%	5.63%	0.82%	-49.15%
OEL	52 Neutral	$19.18M	―	-2.53%	―	-22.77%	96.05%
ADXRF		$13.01M	―	-71.83%	―	―	―
BRNGF		$17.77M	―	-65.98%	―	―	―
ROG	56 Neutral	AU$24.40M	―	3.98%	―	709.42%	―
FDR	45 Neutral	AU$16.77M	3.47	109.55%	―	-100.00%	―
GAS	41 Neutral	AU$9.82M	―	-9.81%	―	―	-73.68%

Otto Energy Limited Corporate Events

Otto Energy Reports Steady Q1 2025 Performance Amid Cost Reductions

Otto Energy Limited reported consistent operational performance in the first quarter of 2025, with a revenue of US$5.2 million despite a 9% decrease in production. The company saw a 16% increase in net revenue from the Lightning Field due to higher natural gas prices and managed to reduce its operating costs by 16%. Otto’s cash balance increased to US$35.6 million, aided by positive cashflows and an insurance claim. The company is also seeking a tax-free return of capital ruling from the ATO for a planned shareholder return of up to A$40 million.

Otto Energy Updates Capital Return Timetable Amid ATO Ruling Delay

Otto Energy Limited has announced an update on the timetable for its return of capital, which was approved by shareholders in November 2023. The company is awaiting a tax ruling from the Australian Tax Office to finalize the distribution, which amounts to up to A$40 million or A$0.008 per share. The new indicative timetable outlines key dates for the capital return, with the effective date set for May 13, 2025, and payment to shareholders scheduled for May 30, 2025. The company acknowledges the delay and thanks shareholders for their patience.

Otto Energy Reports H1 FY25 Results, Focuses on Cost Reduction and Shareholder Returns

Otto Energy Limited reported its financial results for the half-year ending December 2024, highlighting a strategic focus on cost reduction and shareholder returns. The company announced a return of up to A$40 million to shareholders and achieved a 55% reduction in general and administrative costs. Despite a decrease in production due to hurricanes and maintenance, Otto maintained a strong net cash position with zero debt. The company also undertook remedial activities to boost production and filed an insurance claim related to unexpected drilling challenges. The relinquishment of an exploration lease reflects Otto’s strategy to concentrate on producing assets and manage costs effectively.

Otto Energy Updates Capital Return Timetable Amid ATO Ruling Delays

Otto Energy Limited has announced a revised timetable for its previously approved capital return of up to A$40 million. While the company awaits a tax ruling from the Australian Tax Office to finalize the distribution as tax-free, it has outlined new dates for the capital return process. The adjustments to the timeline reflect the company’s ongoing efforts to manage shareholder expectations and its responsiveness to regulatory requirements.