Zephyr Energy (ZPHR) AI Stock Analysis

• Market Cap: £56.72M
• Dividend Yield: N/A
• Average Volume (3M): 3.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -35.06%
• EPS Growth: -550.00%
• Country: UK
• Employees: 6
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 2,100,719,000
• 10 Day Avg. Volume: 4,616,446
• 30 Day Avg. Volume: 3,850,901
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 2.72
• P/FCF Ratio: -88.08
• 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: £11.10
• Price Target Upside: 311.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: 2.50p ▼(-7.41% Downside)

Zephyr Energy's overall stock score is primarily influenced by its strategic corporate events, which provide a positive outlook despite current financial and technical challenges. The company's ability to secure financing and expand its asset base is a significant strength, offsetting some of the risks associated with its current financial performance and valuation.

Positive Factors

Operational Efficiency

Zephyr's use of advanced technologies enhances operational efficiency, potentially reducing costs and improving resource recovery over time.

Sustainable Practices

Commitment to sustainability and renewable integration positions Zephyr favorably in the evolving energy landscape, aligning with long-term industry trends.

Positive Operating Cash Flow

Positive operating cash flow indicates Zephyr's capability to sustain operations and invest in growth, despite profitability challenges.

Negative Factors

Revenue Decline

The significant revenue decline poses a challenge to growth and market competitiveness, impacting long-term financial health.

Negative Profit Margins

Negative profit margins indicate ongoing challenges in cost management and profitability, affecting long-term financial sustainability.

Negative Free Cash Flow

Negative free cash flow suggests potential cash management issues, limiting Zephyr's ability to fund new projects or reduce debt.

Zephyr Energy Business Overview & Revenue Model

Company Description

Zephyr Energy (ZPHR) is an energy company focused on the exploration and production of oil and natural gas resources, primarily in the United States. With a commitment to sustainable practices, the company aims to develop energy assets while minimizing environmental impact. Zephyr operates in various sectors of the energy market, emphasizing both traditional fossil fuels and the transition to renewable energy sources, providing a diversified approach to energy production.

How the Company Makes Money

Zephyr Energy generates revenue primarily through the sale of oil and natural gas produced from its exploration and production activities. The company operates several active drilling sites and utilizes advanced technology to enhance extraction efficiency. Key revenue streams include direct sales of hydrocarbons to refineries and energy distributors, as well as potential partnerships with larger energy firms that may involve joint ventures or service agreements. Additionally, Zephyr may benefit from price fluctuations in the energy market, which can significantly impact earnings based on the prevailing prices of oil and natural gas.

Zephyr Energy Financial Statement Overview

Summary

Zephyr Energy faces significant challenges in profitability and cash management, with negative net income and free cash flow. However, the company maintains a balanced capital structure and positive operating cash flow, indicating some financial resilience.

Income Statement

Zephyr Energy has experienced fluctuating revenue over the past years with a significant decline in 2023 and 2024. The gross profit margin has been positive, but the company has struggled with negative EBIT and EBITDA margins in recent years, impacting overall profitability. Net income has been negative, reflecting ongoing challenges in achieving profitability.

Balance Sheet

The company has a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the return on equity has been negative due to consistent net losses. The equity ratio remains strong, suggesting a solid capital structure despite recent financial challenges.

Cash Flow

Zephyr Energy's operating cash flow has been positive, showing the company's ability to generate cash from operations. However, free cash flow has been negative due to high capital expenditures, indicating potential cash management issues. The operating cash flow to net income ratio is favorable, suggesting efficient cash flow management despite net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.28M	25.23M	41.06M	5.46M	0.00
Gross Profit	7.20M	7.19M	22.40M	5.07M	0.00
EBITDA	-7.50M	8.04M	29.91M	2.77M	-1.65M
Net Income	-19.57M	-3.50M	19.27M	848.00K	-3.02M
Balance Sheet
Total Assets	93.47M	112.57M	104.73M	40.58M	18.02M
Cash, Cash Equivalents and Short-Term Investments	10.27M	3.61M	9.00M	1.81M	3.94M
Total Debt	26.36M	35.42M	25.39M	4.06M	8.00K
Total Liabilities	42.34M	47.87M	44.01M	9.98M	2.48M
Stockholders Equity	51.14M	64.70M	60.73M	30.59M	15.54M
Cash Flow
Free Cash Flow	-751.00K	-20.48M	89.00K	-17.86M	-1.71M
Operating Cash Flow	12.98M	11.63M	27.23M	933.00K	-1.35M
Investing Cash Flow	-5.42M	-27.59M	-55.72M	-21.50M	1.45M
Financing Cash Flow	-898.00K	10.57M	36.21M	18.55M	2.75M

Zephyr Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZPHR, the sentiment is Positive. The current price of 2.7 is above the 20-day moving average (MA) of 2.46, above the 50-day MA of 2.60, and below the 200-day MA of 3.22, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 81.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZPHR.

Zephyr Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AET	76 Outperform	£88.20M	3.11	42.05%	―	50.35%	48.07%
CASP	72 Outperform	£64.80M	6.88	5.26%	―	-58.10%	100.00%
ENW	67 Neutral	£48.10M	6.99	5.77%	―	-54.53%	-64.24%
PHAR	66 Neutral	£79.83M	19.55	1.91%	6.46%	-9.43%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
JSE	54 Neutral	£119.04M	8.01	56.01%	―	4.56%	―
ZPHR	53 Neutral	£56.72M	-2.12	-50.13%	―	-35.06%	-550.00%

Zephyr Energy Corporate Events

Zephyr Energy Advances Paradox Project with Strategic Financing Moves

Zephyr Energy has announced a significant update on its Paradox project, highlighting the successful refinancing of existing borrowings at a lower cost and securing additional loan financing for expansion. The company is focused on connecting three wells to pipeline infrastructure to commence hydrocarbon production, with an eye on increasing natural gas demand in the western U.S. markets. Zephyr has also nominated 38,000 acres for future federal lease sales, aiming to expand its asset base. The refinancing with First International Bank & Trust has reduced the company’s debt cost, while additional funding will support near-term expenditures and potential leasehold acquisitions, enhancing operational flexibility.

Zephyr Energy Launches $100M Strategic Partnership for U.S. Asset Expansion

Zephyr Energy has approved initial investments under a US$100 million strategic partnership with a U.S.-based investor to expand its non-operated asset portfolio. This partnership will fund the capital expenditure for drilling and equipping new wells in the U.S. Rocky Mountains, with the investor covering all initial costs. The move is expected to enhance Zephyr’s cash flow and drive growth in its non-operated portfolio, leveraging the company’s regional expertise and the investor’s financial strength.

Zephyr Energy Announces Major Boost in Paradox Project Reserves

Zephyr Energy has announced a transformative increase in its recoverable reserves at the Paradox project, following an updated Competent Person’s Report by Sproule-ERCE International Limited. The report highlights a 93-fold increase in Proved Recoverable Reserves and a 25-fold increase in Proved & Probable Reserves, indicating a significant maturation of the project towards production. This development is expected to generate substantial free cash flows and enhance the project’s net present value, positioning Zephyr favorably in the market. The company is actively seeking partners to accelerate drilling and commercial production, leveraging its existing infrastructure and the rising demand for domestic gas in western markets.

Zephyr Energy Advances Paradox Basin Project and Expands Asset Portfolio

Zephyr Energy reported its interim results for the first half of 2025, highlighting significant progress in its Paradox Basin project in Utah. The company successfully drilled the State 36-2R well, achieving a peak flow rate of 2,848 barrels of oil equivalent per day, indicating substantial potential for the project. Zephyr is advancing towards commercial production and is in discussions with partners to accelerate drilling activities. Additionally, the company completed a US$7.3 million acquisition of producing assets in the Rocky Mountain basins, which is expected to enhance its competitive position and financial performance. The acquisition, supported by a US$100 million strategic partnership, aims to drive growth in Zephyr’s non-operated portfolio.