Winchester Energy Ltd (WEL) AI Stock Analysis

• Market Cap: AU$2.73M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -26.88%
• EPS Growth: 24.00%
• Country: AU
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 1,363,018,900
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.02
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.80
• P/FCF Ratio: -6.48
• 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: 44 Neutral
• Price Target: ―

Winchester Energy Ltd's overall score reflects significant financial challenges, including declining revenue, negative profitability, and cash flow issues. Technical analysis is limited due to a lack of data, and valuation measures such as a negative P/E ratio further highlight the company's struggles. The stock requires substantial improvements in its financial health and operational efficiency to enhance its attractiveness to investors.

Positive Factors

Strategic Expansion

The joint venture with Jaguar Exploration for offshore rights in Peru could significantly enhance Winchester's operational footprint and market position, offering potential for increased resource discovery and long-term growth.

Cost Management

By focusing on cost reduction, Winchester Energy aims to improve its financial stability and operational efficiency, which is crucial for sustaining profitability and competitiveness in the long term.

Governance Standards

Adhering to high governance standards can enhance stakeholder confidence and ensure accountability, potentially leading to better strategic decisions and improved investor relations over time.

Negative Factors

Revenue Decline

The sharp decline in revenue indicates challenges in maintaining market share and operational efficiency, which could hinder future growth and profitability if not addressed.

Negative Cash Flow

Negative cash flow constrains the company's ability to invest in growth opportunities and manage operational costs, posing a risk to long-term financial health and sustainability.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies and market challenges, which could impact the company's ability to generate sustainable profits and shareholder value.

Winchester Energy Ltd Business Overview & Revenue Model

Company Description

Winchester Energy Limited, together with its subsidiaries, engages in the acquisition and exploration of oil and gas properties in the United States and Australia. It had approximately 17,266 net acres located in the Eastern Shelf of the Permian Basin in Texas. The company was incorporated in 2014 and is based in West Perth, Australia.

How the Company Makes Money

Winchester Energy Ltd generates revenue primarily through the production and sale of crude oil. The company operates oil wells, from which it extracts hydrocarbons and subsequently sells them in the market. Key revenue streams include sales of oil, which are influenced by market prices and production volumes. Additionally, WEL may enter into joint ventures and partnerships with other energy companies to share costs and enhance resource development, which can further contribute to its earnings. The company may also engage in hedging activities to manage price volatility, thereby stabilizing revenue streams. Factors such as operational efficiency, cost management, and market demand for oil play significant roles in determining the overall financial performance of Winchester Energy Ltd.

Winchester Energy Ltd Financial Statement Overview

Summary

Winchester Energy Ltd faces considerable financial challenges with declining revenue and profitability metrics, negative profit margins, and cash flows. Despite a low debt-to-equity ratio, liquidity concerns and declining equity overshadow this strength. The company requires strategic restructuring to improve financial stability.

Income Statement

Winchester Energy Ltd has experienced significant revenue decline over the recent period, from $5.65M in 2022 to $1.85M in 2024, reflecting a negative growth trajectory. The company has consistently reported negative net income, leading to negative net profit margins. The absence of EBIT and negative EBITDA further highlight profitability challenges, indicating operational inefficiencies.

Balance Sheet

The company's balance sheet shows a moderately healthy equity position with a stockholders' equity of $5.84M against total assets of $7.11M. The debt-to-equity ratio is low, indicating conservative leverage. However, the declining equity over time and reduced total assets suggest potential liquidity and growth challenges.

Cash Flow

Winchester Energy Ltd's cash flow statements reveal significant negative free cash flow, indicating cash outflows surpass inflows, which could constrain future operations and investments. The operating cash flow has also turned negative, reflecting operational struggles. However, the company has managed to secure financing, which may provide short-term relief.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.12M	1.85M	3.12M	5.65M	4.15M	2.22M
Gross Profit	2.12M	1.85M	2.12M	2.60M	850.47K	-753.55K
EBITDA	-1.92M	-573.08K	-1.92M	739.18K	-129.29K	-2.09M
Net Income	-2.56M	-1.33M	-2.56M	-574.62K	-1.45M	-3.44M
Balance Sheet
Total Assets	8.02M	7.11M	8.02M	10.19M	10.34M	8.14M
Cash, Cash Equivalents and Short-Term Investments	219.21K	519.95K	219.21K	738.99K	2.56M	1.61M
Total Debt	77.00K	117.04K	77.00K	76.84K	113.65K	64.39K
Total Liabilities	1.41M	1.27M	1.41M	1.10M	802.33K	694.22K
Stockholders Equity	6.62M	5.84M	6.62M	9.09M	9.54M	7.45M
Cash Flow
Free Cash Flow	-489.53K	-227.22K	-489.53K	-6.30M	-2.25M	-3.70M
Operating Cash Flow	366.70K	41.79K	366.70K	3.04M	1.02M	-280.98K
Investing Cash Flow	-846.27K	-608.86K	-846.27K	-4.71M	-3.23M	-3.42M
Financing Cash Flow	-41.00K	560.60K	-41.00K	-37.71K	3.19M	-116.62K

Winchester Energy 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%
WEL	44 Neutral	AU$2.73M	―	-26.79%	―	-26.88%	24.00%
XST	43 Neutral	€5.28M	-0.57	-120.24%	―	-92.71%	-220.72%
BUY	36 Underperform	―	―	-30.63%	―	-32.65%	-66.67%
WBE	23 Underperform	AU$5.63M	-1.04	―	―	―	―
GLL	22 Underperform	AU$5.66M	-1.72	-1481.88%	―	―	36.96%

Winchester Energy Ltd Corporate Events

Winchester Energy Begins Production at JVU-5 Well in Texas

Winchester Energy Limited has announced the commencement of production from its JVU-5 well at the Varn Oil Field in Texas. The well, which is the second oil producer in the Varn waterflood project, has achieved an initial production rate of 25 barrels of oil per day. This development is part of a larger plan to enhance production through a series of wells, with the next phase involving the drilling of a water injection well in early 2026, indicating the company’s strategic efforts to boost output and operational capacity.

Winchester Energy Announces Director Departure

Winchester Energy Ltd announced that Jason Peterson has ceased to be a director of the company as of November 3, 2025. The announcement includes details of Peterson’s interests in securities, noting that he holds no securities as a registered holder but has significant holdings through Sunset Capital Management Pty Ltd, where he is a director and shareholder. This change in directorship could impact the company’s governance and strategic direction, potentially affecting stakeholder confidence and market perception.

Winchester Energy Ltd Appoints New Director

Winchester Energy Ltd has announced the appointment of Mr. Thomson Naude as a director, effective from November 3, 2025. The announcement indicates that Mr. Naude currently holds no relevant interests in securities or contracts related to the company, suggesting a fresh perspective and potential strategic shifts in the company’s governance.

Winchester Energy Announces Board Changes with New Appointment

Winchester Energy Limited has announced the appointment of Mr. Thomson Naude as a Non-Executive Director, bringing significant experience from his previous roles in the oil and gas industry, including positions at Carnarvon Energy Limited and Hibiscus Petroleum. Concurrently, Mr. Jason Peterson has resigned from his position as Non-Executive Director but will continue to serve as a Corporate Advisor. These board changes reflect Winchester Energy’s strategic efforts to strengthen its leadership team and potentially enhance its operational capabilities in the energy sector.

Winchester Energy Reports Quarterly Revenue and Strategic Farm-Out Agreement

Winchester Energy Ltd reported a quarterly net revenue of AUD$458,610, with production averaging 69 barrels of oil equivalent per day, slightly down from the previous quarter. The company completed a farm-out agreement for a 30% interest in the Varn waterflood project with a private US investor group, which includes upfront consideration and a ‘third-for-a-quarter’ promote on planned wells, potentially enhancing future production capabilities.

Winchester Energy Completes JVU-5 Drilling at Varn Project

Winchester Energy Limited has successfully completed drilling the JVU-5 production well at its Varn waterflood project in Texas, reaching a depth of 4,877 feet. The well, which showed promising oil and gas indicators, is set to proceed to completion and production, marking a significant step in the company’s development plans. The Varn project involves a total of 10 wells, with infrastructure already in place to expedite production. This advancement supports Winchester’s strategic goals and enhances its operational capabilities in the region.

Winchester Energy Begins Drilling at Varn Waterflood Project

Winchester Energy Limited has commenced drilling the JVU-5 production well in the Varn waterflood project in Taylor County, Texas. This development is part of a joint venture where Winchester holds a 70% working interest. The project aims to enhance oil recovery through a planned operation of 10 wells, including both producers and injectors, leveraging existing infrastructure to expedite production. This initiative underscores Winchester’s strategic commitment to maximizing value from its US operations, with the Varn Oil Field containing significant proven and probable reserves.

Winchester Energy Partners with US Investors on Varn Waterflood Project

Winchester Energy Limited has entered into a farm-out agreement with a private US investor group, granting them a 30% interest in the Varn waterflood project. This agreement will provide Winchester with upfront consideration and additional funding for the development of the project, which has significant oil and gas reserves. The project is expected to enhance production and support Winchester’s US operations, while the company continues to explore new opportunities.

Winchester Energy Releases Half-Year Report for 2025

Winchester Energy Limited has released its half-year report for the period ending June 30, 2025. The report includes updates on the company’s financial performance, operational highlights, and strategic initiatives. The announcement is likely to impact the company’s stakeholders by providing insights into its current market positioning and future growth prospects.