Red Sky Energy Limited (ROG) AI Stock Analysis

• Market Cap: AU$13.56M
• Dividend Yield: N/A
• Average Volume (3M): 14.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: -7.30%
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 5,422,227,000
• 10 Day Avg. Volume: 10,697,866
• 30 Day Avg. Volume: 14,011,195
• PEG Ratio: -1.64
• Price to Book (P/B): 8.17
• Price to Sales (P/S): 20.54
• P/FCF Ratio: 201.90
• 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: 59 Neutral
• Price Target: AU$0.01 ▲(0.00% Upside)

The score is primarily supported by improved 2024 financial performance (return to profitability and positive cash flow) and a conservative, zero-debt balance sheet. Offsetting this is limited technical visibility (missing indicators with high beta) and weak/unclear valuation signals due to a negative P/E and no dividend yield data.

Positive Factors

Zero-Debt Balance Sheet

A zero-debt balance sheet provides financial flexibility, reducing risk and enabling the company to invest in growth opportunities without the burden of interest payments.

Improved Cash Flow

Positive cash flow indicates better operational efficiency and financial health, allowing the company to fund operations and growth initiatives internally.

Production Expansion

The expansion of production capacity through the Yarrow 1 well enhances revenue potential and strengthens market position, supporting long-term growth.

Negative Factors

Revenue Volatility

Past revenue volatility suggests potential challenges in maintaining consistent growth, posing risks to financial stability and investor confidence.

Low Reservoir Quality

Low reservoir quality necessitates additional investment and operational complexity, potentially impacting cost efficiency and production timelines.

Execution Risk

Execution risk remains high due to historical losses and the need to sustain recent financial improvements, challenging long-term strategic goals.

Red Sky Energy Limited Business Overview & Revenue Model

Company Description

Red Sky Energy Limited engages in the acquisition, exploration, and development of oil and gas properties in the United States and Australia. Its flagship project comprises the Killanoola Oil project, which covers approximately 17.5 square kilometers located in Otway Basin, South Australia. The company holds a 100% interest in the Gold Nugget gas field located in the Wind River Basin, Wyoming. It also holds interests in the Flax oil and gas field, the Juniper oil field, and the Yarrow gas field located to the north of Innamincka, northeast South Australia. Red Sky Energy Limited was incorporated in 2001 and is based in Melbourne, Australia.

How the Company Makes Money

Red Sky Energy Limited generates revenue primarily through the exploration and eventual production of oil and gas assets. The company invests in acquiring exploration permits and licenses, which allow it to explore and potentially develop oil and gas fields. Once resources are discovered and deemed commercially viable, Red Sky Energy can generate income through the sale of extracted oil and gas. Additionally, the company may enter into joint venture partnerships with other exploration and production companies to share risks and costs associated with large-scale projects. Key revenue streams include the sale of produced hydrocarbons and potential royalties or fees from partnerships and joint ventures. The company's financial performance is heavily influenced by global oil and gas prices, exploration success rates, and operational efficiency.

Red Sky Energy Limited Financial Statement Overview

Summary

Red Sky Energy Limited has shown significant financial improvement with a transition to profitability and impressive revenue growth. The company benefits from a strong balance sheet with no debt, minimizing financial risk. However, challenges in generating operating cash flow and historical volatility warrant caution.

Income Statement

Red Sky Energy Limited has shown a significant improvement in its financial performance over the past year. The company transitioned from a net loss in 2023 to a net profit in 2024, resulting in a positive net profit margin of 9.41%. Revenue growth is impressive, increasing from 357,903 to 2,896,956 AUD, a growth rate of 709.35%. Additionally, the gross profit margin stands at 70.85%, indicating strong control over production costs. However, the EBIT margin remains relatively low at 5.83%, suggesting that operating expenses are still a concern. Despite these gains, the company's historical performance shows volatility, which may pose risks moving forward.

Balance Sheet

The balance sheet of Red Sky Energy Limited appears robust with a strong equity position. The equity ratio is high at 84.54%, indicating a solid capital structure with minimal reliance on debt. The company has no debt, which minimizes financial risk. Additionally, the return on equity (ROE) is 3.74%, reflecting a moderate return on shareholder investment. While the company's assets have increased, a significant portion is held in cash, which might limit potential returns if not effectively utilized.

Cash Flow

Red Sky Energy Limited's cash flow statement reveals challenges in generating operating cash flow, which is currently at zero for 2024. Free cash flow, however, has improved significantly from a negative figure in 2023 to a positive 294,713 AUD in 2024. This improvement is largely due to reduced capital expenditures. The free cash flow to net income ratio suggests that not all net income is translating into cash, which could impact the company's liquidity if sustained. The historical cash flow trend highlights the need for improved cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.00M	2.90M	357.90K	0.00	0.00	0.00
Gross Profit	324.28K	2.05M	185.74K	-16.85K	-4.84K	-1.45K
EBITDA	-518.27K	357.58K	-1.62M	-1.66M	-1.50M	-1.74M
Net Income	-588.04K	272.41K	-1.56M	-1.68M	-1.51M	-1.78M
Balance Sheet
Total Assets	8.62M	8.61M	7.95M	8.12M	8.73M	908.73K
Cash, Cash Equivalents and Short-Term Investments	2.27M	2.96M	2.67M	4.17M	7.00M	786.93K
Total Debt	0.00	0.00	0.00	0.00	0.00	341.20K
Total Liabilities	1.59M	1.33M	1.53M	1.03M	562.62K	914.05K
Stockholders Equity	7.03M	7.28M	6.42M	7.09M	8.16M	-5.32K
Cash Flow
Free Cash Flow	-728.15K	294.71K	-1.50M	-2.83M	-2.18M	-399.68K
Operating Cash Flow	8.00K	924.28K	-695.19K	-1.14M	-1.50M	-381.15K
Investing Cash Flow	-1.07M	-629.57K	-804.70K	-1.69M	-1.20M	-18.84K
Financing Cash Flow	0.00	0.00	0.00	0.00	8.91M	1.07M

Red Sky Energy Limited 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%
ROG	59 Neutral	AU$13.56M	-100.00	-8.36%	―	-7.30%	―
OEL	52 Neutral	AU$19.18M	43.33	2.14%	―	-22.76%	―
EMP	51 Neutral	AU$91.35M	-61.11	-13.64%	―	―	30.77%
BRU	48 Neutral	AU$22.05M	-1.39	-70.94%	―	―	―
FDR	48 Neutral	AU$159.32M	18.85	168.99%	―	―	―
HHR	46 Neutral	AU$36.51M	-16.25	-6.62%	―	―	20.00%

Red Sky Energy Limited Corporate Events

Red Sky Energy’s Yarrow 1 Well Set to Boost Production and Revenue

Red Sky Energy Limited has announced the completion of the Yarrow 1 well, part of the Innamincka Dome Project, with operations expected to finalize by November 9, 2025. The tie-in line construction is set to complete by November 16, 2025, with first gas anticipated by November 18, 2025. This development is projected to more than double Red Sky’s current gas production from the Innamincka field, significantly boosting cash flow and positioning the company for a robust end to 2025. The successful re-entry of Yarrow 1, in partnership with Santos Limited, aligns with Red Sky’s strategy to capitalize on existing resources through cost-effective re-completions, enhancing their operational success and financial performance.

Red Sky Energy Completes Drilling at Killanoola-2, Plans Future Production

Red Sky Energy has completed drilling operations at the Killanoola-2 oil appraisal well in South Australia’s Otway Basin, reaching a total depth of 1,044 meters. The well has been cased and suspended for potential future production, with petrophysical analysis confirming the presence of hydrocarbons in the Upper Sawpit Sandstone, though with low permeability. The company plans to evaluate stimulation options to enhance production potential and intends to complete both the KN2 and nearby DW1 wells using a workover rig, subject to regulatory approval. This development aligns with Red Sky’s strategy to unlock value at Killanoola through targeted artificial lift and stimulation, despite the current challenges of low reservoir quality.

Red Sky Energy Advances Killanoola-2 Drilling Operations

Red Sky Energy Limited has successfully drilled the Killanoola-2 well in South Australia’s Otway Basin to a depth of approximately 1044 meters without any incidents. The well targets the Sawpit Sandstone formation, aiming to enhance oil production potential identified through recent 3D seismic data. The company plans to conduct further formation evaluation and drill stem tests to assess zones of interest, with additional updates to follow upon completion of logging.

Red Sky Energy Reports Strong Progress and Strategic Growth in September 2025

Red Sky Energy Limited’s September 2025 quarterly report highlights significant progress across its projects, contributing to the company’s growth and value creation strategy. The Innamincka project continues to generate strong cash flows from Yarrow 3, while Yarrow 1 is expected to further boost cash flow in 2026. At Killanoola, the completion of the KN2 pad and commencement of drilling operations are set to increase production and generate near-term revenue. Additionally, the formal signing of the Risk Service Contract for Block 6/24 in Angola secures Red Sky’s 35% interest in a promising offshore block, supporting its long-term diversification strategy and strengthening its ability to deliver sustainable value for shareholders.

Red Sky Energy Begins Drilling at Killanoola-2 Well

Red Sky Energy Limited has commenced drilling at the Killanoola-2 well in South Australia’s onshore Otway Basin, marking a significant advancement from planning to execution. The drilling operation, which began on October 24, 2025, involves the use of Condor Rig 01 and has successfully completed the initial stages, including the installation and cementing of the surface casing. The current focus is on preparing the BOP equipment to continue drilling to a depth of approximately 1050 meters. This development is a crucial step for Red Sky, as it progresses towards achieving key project milestones, potentially impacting its operational capabilities and stakeholder interests.

Red Sky Energy Receives Approval to Commence Drilling at Killanoola-2 Well

Red Sky Energy Limited has received approval from the South Australian Department for Energy and Mining to commence drilling at the Killanoola-2 (KN2) well, marking a significant milestone for the company. This development is expected to enhance Red Sky’s operational capabilities and potentially increase output and revenue, with the KN2 well targeting a previously undrilled structural high that could drive material growth in the near term.

Red Sky Energy Advances Killanoola Oil Field Operations

Red Sky Energy Limited announced the successful installation of a surface conductor at the Killanoola Oil Field following approval from the Department for Energy and Mining. This development marks a significant step forward in their drilling operations, with further preparations underway as they await the final approval for the drilling program. The company’s progress in this project is expected to enhance its operational capabilities and strengthen its position in the energy sector.

Red Sky Energy Advances Drilling Preparations at Killanoola Oil Project

Red Sky Energy Limited has announced significant progress in the preparations for drilling at the KN2 well site within the Killanoola Oil Project in South Australia’s Penola Trough. The company has mobilized drilling equipment to the site and received approval for its water monitoring program from the Department for Energy and Mining (DEM), with the drilling program awaiting final regulatory approval. The drilling operation, expected to last nine days, marks a crucial step in Red Sky’s operational milestones, with further plans to advance discussions on offtake and processing with Santos, indicating potential growth and development in their oil production capabilities.