Zephyr Energy (ZPHR) AI Stock Analysis

• Market Cap: £63.02M
• Dividend Yield: N/A
• Average Volume (3M): 3.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• 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: £14.00
• Price Target Upside: 409.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: 3.00p ▲(9.09% Upside)

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

Strategic financing and partnership

Securing lower-cost refinancing, additional capital and a $100M strategic partnership materially improves liquidity and funding optionality. This reduces refinancing risk, supports near-term project funding and enables disciplined asset expansion over the next several quarters, strengthening long-term execution capacity.

Positive operating cash generation

Consistent positive operating cash flow signals the core asset base generates real cash despite accounting losses. That cash generation supports working capital, funds ongoing operations and, combined with financing, can sustain development activity and stability over a multi-quarter horizon even while profitability metrics recover.

Balanced capital structure

A moderate leverage profile and a strong equity ratio provide financial flexibility versus highly leveraged peers. This balanced structure helps absorb commodity volatility, supports access to capital markets or partner deals, and reduces bankruptcy risk, making the firm's capital base more durable over several quarters.

Negative Factors

Sustained unprofitability and weak margins

Persistent negative operating and EBITDA margins indicate core profitability issues that impair internal capital formation. Over multiple quarters, continued losses constrain reinvestment, increase reliance on external funding, and may limit ability to build scale or return capital until structural margin improvements occur.

Negative free cash flow from high capex

Negative free cash flow driven by elevated capex means operating cash isn't covering investment needs. That dynamic forces ongoing external financing or asset sales to fund growth, increasing execution risk and financial cost over coming quarters if capex intensity remains elevated relative to cash generation.

Significant revenue and EPS decline

Sharp multi-year declines in revenue and EPS reflect weakening commercial momentum or portfolio setbacks. This trend reduces scale advantages, pressures margins and heightens operational risk. Without clear signs of revenue recovery, the company faces a challenging path to sustainable profitability in the medium term.

Zephyr Energy Business Overview & Revenue Model

Company Description

Zephyr Energy plc, together with its subsidiaries, engages in the exploration and development of oil and gas resources in the United States. Its flagship property is the Paradox Basin, which covers an area of approximately 37,613 acres located in Utah, the United States. The company was formerly known as Rose Petroleum plc and changed its name to Zephyr Energy plc in August 2020. Zephyr Energy plc was incorporated in 2002 and is based in London, the United Kingdom.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.53M	24.28M	25.23M	41.06M	5.46M	0.00
Gross Profit	9.66M	7.20M	7.19M	22.40M	5.07M	0.00
EBITDA	2.33M	-7.50M	8.04M	29.91M	2.77M	-1.65M
Net Income	-29.57M	-19.57M	-3.50M	19.27M	848.00K	-3.02M
Balance Sheet
Total Assets	85.61M	93.47M	112.57M	104.73M	40.58M	18.02M
Cash, Cash Equivalents and Short-Term Investments	5.81M	10.27M	3.61M	9.00M	1.81M	3.94M
Total Debt	23.44M	26.36M	35.42M	25.39M	4.06M	8.00K
Total Liabilities	34.75M	42.34M	47.87M	44.01M	9.98M	2.48M
Stockholders Equity	50.87M	51.14M	64.70M	60.73M	30.59M	15.54M
Cash Flow
Free Cash Flow	3.20M	-751.00K	-20.48M	89.00K	-17.86M	-1.71M
Operating Cash Flow	9.01M	12.98M	11.63M	27.23M	933.00K	-1.35M
Investing Cash Flow	-2.54M	-5.42M	-27.59M	-55.72M	-21.50M	1.45M
Financing Cash Flow	-1.74M	-898.00K	10.57M	36.21M	18.55M	2.75M

Zephyr Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.75
• 50DMA: Positive
• 100DMA: Positive
• 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 2.75 is above the 20-day moving average (MA) of 2.70, above the 50-day MA of 2.57, and below the 200-day MA of 3.10, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 61.83 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 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
CASP	72 Outperform	£64.80M	6.88	5.26%	―	-58.10%	100.00%
ENW	67 Neutral	£52.91M	6.99	5.77%	―	-54.53%	-64.24%
PHAR	66 Neutral	£89.93M	22.02	1.91%	6.46%	-9.43%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ZPHR	53 Neutral	£63.02M	-2.31	-50.13%	―	-35.06%	-550.00%
AEX	49 Neutral	£91.60M	-20.50	-19.12%	―	―	―
UPL	46 Neutral	£54.50M	-27.92	-47.49%	―	―	―

Zephyr Energy Corporate Events

Zephyr Energy Director Increases Stake and Transfers Shares into Pension

Zephyr Energy has disclosed that non-executive director Tom Reynolds has increased and restructured his holding in the company by purchasing 466,667 ordinary shares at an average price of 2.82 pence and transferring a further 1,033,333 shares into his pension. Following these transactions, Reynolds now has a beneficial interest in 1.5 million ordinary shares, representing about 0.07% of Zephyr’s issued share capital, a move likely to be read by investors as a signal of board-level confidence and longer-term alignment with shareholders as the company advances its Rocky Mountain-focused growth strategy.

The most recent analyst rating on (GB:ZPHR) stock is a Sell with a £3.00 price target. To see the full list of analyst forecasts on Zephyr Energy stock, see the GB:ZPHR Stock Forecast page.

Zephyr Energy lifts output, restructures portfolio and advances Paradox gas project

Zephyr Energy reported a sharp increase in third-quarter 2025 production from its non-operated portfolio to 925 boepd, reflecting the impact of a US$7.3 million acquisition that expanded its interests to more than 600 gross wells across multiple U.S. basins. The company has been actively recycling capital by selling non-core acreage and small operated assets for roughly US$2.6 million in proceeds, while extending its US$100 million strategic funding partnership for non-operated drilling and renewing its US$15.15 million revolving credit facility on improved terms with a reduced interest rate. At its Paradox Basin flagship project in Utah, Zephyr has secured a framework agreement with Enbridge to build and operate pipeline interconnect facilities needed to bring first gas to market and is reviewing multiple proposals that could provide marketing solutions and funding for further drilling, positioning the company for a new phase of growth in 2026.

The most recent analyst rating on (GB:ZPHR) stock is a Hold with a £2.50 price target. To see the full list of analyst forecasts on Zephyr Energy stock, see the GB:ZPHR Stock Forecast page.

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.

The most recent analyst rating on (GB:ZPHR) stock is a Hold with a £2.50 price target. To see the full list of analyst forecasts on Zephyr Energy stock, see the GB:ZPHR Stock Forecast page.