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Capricorn Energy PLC (CRNCY)
OTHER OTC:CRNCY
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Capricorn Energy PLC
(OTC:CRNCY)
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Rating:64Neutral
Price Target:
$7.50
▲(23.97% Upside)
The score is driven primarily by improving financial performance (return to profitability and positive free cash flow) and strong technical momentum (price above key moving averages with positive MACD). This is moderated by weak/unclear valuation signals (negative P/E and no dividend yield provided) and execution risks noted on the earnings call (cost inflation and delayed capex), despite generally positive guidance tied to Egypt.
Positive Factors
Egypt production sharing contract approval
Government approval of consolidated production sharing contracts in Egypt secures a long-term operating base, enhancing recoverable reserves and predictable production. This structurally strengthens cash flow visibility and underpins a self-funding strategy and future investment returns.
Shift to positive free and operating cash flow
A transition from negative to positive free and operating cash flow materially improves financial durability. Positive cash generation enables debt servicing, organic capex funding, and shareholder distributions without reliance on external financing, reducing liquidity and refinancing risk.
Large overhead reduction and rightsizing
An ~80% reduction in G&A demonstrates strong management discipline and a lower fixed-cost base. This structural cost cutting improves long-term margins, boosts operating leverage on production recovery, and increases flexibility to sustain cash returns or reinvest in prioritized assets.
Negative Factors
Material historical revenue decline
A multi-year revenue decline of roughly 30% highlights persistent top-line weakness and scale erosion. Structural revenue contraction reduces ability to absorb fixed costs, undermines reinvestment capacity, and constrains long-term resilience unless production or realized commodity pricing sustainably improves.
Volatile cash flows despite recent improvement
Historic cash-flow volatility raises planning and financing risks: uneven receipts complicate capex scheduling, debt reduction and dividend policy. Even with recent positives, variability tied to commodity cycles and counterparty collections could disrupt funding for growth and debt targets.
Challenges expanding in U.K. North Sea
Repeated failure to secure U.K. North Sea deals limits geographic diversification and reserve replacement, leaving growth reliant on Egypt. Competitive disadvantage in asset auctions constrains long-term production upside and increases concentration risk in a single regional portfolio.
Capricorn Energy PLC (CRNCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$247.80M
Dividend YieldN/A
Average Volume (3M)139.00
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth-30.52%
EPS Growth71.76%
CountryUS
Employees45
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.18
Shares Outstanding35,279,170
10 Day Avg. Volume105
30 Day Avg. Volume139
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.79
Price to Sales (P/S)1.56
P/FCF Ratio6.23
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda2.54
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
Capricorn Energy PLC Business Overview & Revenue Model
Company DescriptionCapricorn Energy PLC operates as an independent oil and gas exploration, development, and production company. The company holds a portfolio of exploration, development, and production assets in the United Kingdom, Israel, Egypt, Mauritania, Mexico, and Suriname. Its activities focused in North West Europe, North and West Africa, and Latin America. The company was formerly known as Cairn Energy PLC and changed its name to Capricorn Energy PLC in December 2021. Capricorn Energy PLC was founded in 1980 and is headquartered in Edinburgh, the United Kingdom.
How the Company Makes MoneyCapricorn Energy generates revenue primarily through the exploration, extraction, and sale of oil and natural gas. Its revenue model is centered around the production of hydrocarbons, which are sold to refineries and distributors. Key revenue streams include the sale of crude oil, natural gas, and natural gas liquids. The company may also engage in joint ventures and partnerships with other energy firms, which can provide additional capital, shared expertise, and access to new markets. Additionally, fluctuations in global oil and gas prices significantly impact its earnings, making market conditions a crucial factor in its financial performance.
Capricorn Energy PLC Earnings Call Summary
Earnings Call Date:Sep 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong focus on operational and financial improvements, particularly in Egypt, with significant achievements like government approval of new contracts, reduction in overhead, and substantial returns to investors. However, there are challenges such as increased operational costs and delays in capital expenditure, as well as difficulties in expanding in the U.K. North Sea. Overall, the positive aspects outweigh the negatives, indicating a positive trajectory.Q2-2025 Updates
Positive Updates
Government Approval of Production Sharing Contracts
Major milestone achieved with government approval of new consolidated production sharing contracts in Egypt, expected to enhance reserves and production.
Significant Reduction in Overhead
General and administrative burden reduced by approximately 80%, including staffing contingent, effectively rightsizing the organization.
Substantial Returns to Investors
Over $600 million returned to investors through dividends and share buybacks.
Debt Reduction in Egypt
Debt in Egypt paid down materially over the year, with continued progress expected.
Liquid Production Performance
Higher-margin drilling leading to liquids remaining slightly above forecast at 43% of production.
Improved Cash Collections from EGPC
Cash collections from EGPC improved, anticipating at least $90 million in the second half of 2025.
Negative Updates
Increasing Operational Costs
Operational expenses trending upwards due to currency devaluation and declining production against a fixed cost base.
Delayed Capital Expenditure
Capital guidance slightly reduced as scheduling pushes some current year activity into the following year.
Challenges in U.K. North Sea
Inability to successfully conclude opportunities in the U.K. North Sea due to being outbid or sellers retaining assets.
Company Guidance
During the midyear 2025 results call, Capricorn's management highlighted several key metrics and strategic initiatives that underscore the company's progress and future plans. The company achieved a significant milestone by securing government approval for a new consolidated production sharing contract in Egypt, which is expected to enhance reserves, production, and cash flow. Over the past two years, Capricorn exited non-core activities, reduced its general and administrative expenses by approximately 80%, and returned over $600 million to shareholders through dividends and share buybacks. Production for the first half of the year aligned with projections, maintaining a range of 17,000 to 21,000 BOE per day, with liquids comprising 43% of production. The company aims to collect at least $90 million in the second half to aid in reducing its outstanding debt. Looking ahead, Capricorn plans to focus on realizing value from its Egyptian base business, exploring opportunities in the U.K. North Sea, and pursuing synergistic asset deals, all while maintaining a self-funding business model.Capricorn Energy PLC Financial Statement Overview
Summary
Mixed fundamentals: revenue has declined materially over 2019–2024 and profitability has been inconsistent, but 2024 shows a return to positive net income, improving gross margin, and better (now positive) operating/free cash flow. Balance sheet leverage appears manageable, though the equity ratio has weakened over time.Income Statement
The company has experienced significant revenue fluctuations, with a notable decline from 2019 to 2024. Profit margins have been inconsistent, with a recent return to positive net income after losses in previous years. The gross profit margin improved in 2024, but the overall revenue growth remains negative.45
Neutral
Balance Sheet
Capricorn Energy displays a moderate debt-to-equity ratio, indicating manageable leverage. However, the equity ratio has decreased over the years, reflecting a reduction in the proportion of assets financed by equity. Return on equity turned positive in 2024 after negative results in previous years, showing potential for recovery.55
Neutral
Cash Flow
The company has shown improvement in free cash flow, shifting from negative to positive in recent years. Operating cash flow has also turned positive, supporting net income after previous negative figures. However, the historical volatility of cash flows poses potential risks.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 157.31M | 177.90M | 201.00M | 229.60M | 57.10M | 400.00K |
| Gross Profit | 40.23M | 51.20M | 140.30M | 149.20M | 12.70M | -11.70M |
| EBITDA | 90.08M | 116.30M | 41.70M | -53.30M | 923.90M | 72.60M |
| Net Income | -20.81M | 10.60M | -144.00M | -67.10M | 894.50M | -393.80M |
Balance Sheet | ||||||
| Total Assets | 537.20M | 619.70M | 667.60M | 1.53B | 2.25B | 1.64B |
| Cash, Cash Equivalents and Short-Term Investments | 84.10M | 123.40M | 189.50M | 891.20M | 400.70M | 574.80M |
| Total Debt | 69.50M | 105.40M | 119.20M | 162.90M | 180.70M | 240.00M |
| Total Liabilities | 188.60M | 270.40M | 261.10M | 314.70M | 447.80M | 509.70M |
| Stockholders Equity | 348.60M | 349.30M | 406.50M | 1.12B | 1.80B | 1.13B |
Cash Flow | ||||||
| Free Cash Flow | -11.59M | 44.50M | -100.80M | -105.30M | 90.50M | -142.90M |
| Operating Cash Flow | 40.04M | 86.10M | -39.90M | 63.50M | 179.90M | 257.90M |
| Investing Cash Flow | -33.91M | -51.30M | 120.80M | 963.90M | -296.00M | 225.60M |
| Financing Cash Flow | -58.18M | -97.30M | -646.20M | -579.60M | -147.90M | -69.30M |
Capricorn Energy PLC Technical Analysis
Positive
6.05
Price Trends
5.46
Positive
5.44
Positive
5.76
Positive
Market Momentum
0.33
Negative
68.66
Neutral
66.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRNCY, the sentiment is Positive. The current price of 6.05 is above the 20-day moving average (MA) of 5.98, above the 50-day MA of 5.46, and above the 200-day MA of 5.76, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 68.66 is Neutral, neither overbought nor oversold. The STOCH value of 66.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRNCY.
Capricorn Energy PLC Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $247.80M | -11.50 | -6.20% | ― | -30.52% | 71.76% | |
64 Neutral | $246.60M | -15.54 | -1.91% | ― | -15.44% | -113.21% | |
52 Neutral | $203.19M | -7.26 | -6.90% | ― | -9.46% | -144.89% | |
51 Neutral | $137.90M | -635.48 | -0.19% | 13.52% | -2.23% | -104.00% |
* Energy Sector Average
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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.