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Alvopetro Energy (TSE:ALV)
:ALV
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Alvopetro Energy
(ALV)
82Outperform
Alvopetro Energy (ALV) vs. S&P 500 (SPY)
Market Cap
C$186.44M
Dividend Yield10.11%
Average Volume (3M)14.75K
Price to Earnings (P/E)8.6
Beta (1Y)0.41
Revenue Growth-22.78%
EPS Growth-43.14%
CountryCA
Employees53
SectorEnergy
Sector Strength82
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.60
Shares Outstanding36,414,894
10 Day Avg. Volume17,711
30 Day Avg. Volume14,752
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.75
Price to Cash Flow (P/CF)4.40
P/FCF Ratio10.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Alvopetro Energy Business Overview & Revenue Model
Company DescriptionAlvopetro Energy Ltd. engages in the acquisition, exploration, development, and production of hydrocarbons. As of December 31, 2021, it held interests in the Caburé and Murucututu natural gas assets; two exploration assets comprising Blocks 182 and the western portion of Block 183; and two oil fields, Bom Lugar and Mãe-da-lua, which include 22,166 acres in the Recôncavo basin onshore Brazil. The company was incorporated in 2013 and is headquartered in Calgary, Canada.
How the Company Makes MoneyAlvopetro Energy generates revenue primarily through the sale of natural gas and oil produced from its exploration and production activities in Brazil. The company's revenue model is centered around its operational assets, particularly in the Recôncavo Basin, where it manages significant natural gas projects. Key revenue streams include the sale of natural gas under long-term contracts to local distribution companies and the sale of crude oil to domestic refineries. Additionally, strategic partnerships and joint ventures play a crucial role in enhancing exploration and production efficiency, thereby contributing to Alvopetro's earnings. The company's focus on cost-effective production and the development of its infrastructure, such as pipelines and processing facilities, further bolster its revenue-generating capabilities.
Alvopetro Energy Financial Statement Overview
Summary
Alvopetro Energy demonstrates strong financial health with solid profitability, a robust balance sheet, and efficient cash flow management. The company maintains high profit margins and a stable financial position, supporting sustainable growth in the competitive fossil fuels industry.Income Statement
Alvopetro Energy demonstrates strong profitability with high gross profit and net profit margins for the TTM (Trailing-Twelve-Months). While there is a slight decline in revenue from the previous period, the company maintains solid EBIT and EBITDA margins, indicating effective operational management.85
Very Positive
Balance Sheet
The company has a healthy financial position with a strong equity ratio and manageable debt levels. The debt-to-equity ratio is low, reflecting prudence in leveraging. Return on Equity (ROE) remains robust, showcasing efficient use of equity for generating profits.78
Positive
Cash Flow
Alvopetro Energy's cash flow performance is commendable, with a solid operating cash flow to net income ratio. Free cash flow remains positive, indicating good cash management. However, the free cash flow growth rate is stable, suggesting room for improvement in cash generation efficiency.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 50.60M | 58.03M | 63.51M | 34.98M | 11.31M | 240.00K | Gross Profit |
| 37.22M | 53.83M | 48.47M | 20.13M | 7.16M | -304.00K | EBIT |
| 25.09M | 47.66M | 43.00M | 15.38M | 3.19M | -3.33M | EBITDA |
| 26.14M | 41.96M | 46.28M | 22.16M | 5.64M | -3.09M | Net Income Common Stockholders |
| 14.70M | 28.52M | 31.73M | 5.59M | 5.71M | -5.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.07M | 18.33M | 19.78M | 11.47M | 5.16M | 1.22M | Total Assets |
| 65.37M | 109.83M | 98.43M | 81.23M | 80.39M | 71.42M | Total Debt |
| 0.00 | 8.68M | 9.43M | 14.52M | 23.73M | 5.19M | Net Debt |
| -7.07M | -9.64M | -10.36M | 3.06M | 18.57M | 3.98M | Total Liabilities |
| 4.80M | 21.62M | 22.02M | 22.61M | 27.28M | 15.54M | Stockholders Equity |
| 60.57M | 88.21M | 76.41M | 58.63M | 53.11M | 55.87M |
| Cash Flow | Free Cash Flow | ||||
| 20.27M | 20.25M | 22.74M | 19.78M | -356.00K | -11.97M | Operating Cash Flow |
| 35.69M | 47.70M | 47.53M | 24.29M | 3.06M | -2.54M | Investing Cash Flow |
| -13.62M | -27.75M | -22.77M | -3.98M | -3.23M | -7.56M | Financing Cash Flow |
| -19.65M | -21.74M | -16.55M | -13.74M | 4.23M | 4.20M |
Alvopetro Energy Technical Analysis
Positive
5.12
Price Trends
4.77
Positive
4.73
Positive
4.66
Positive
Market Momentum
0.11
Negative
71.94
Negative
83.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALV, the sentiment is Positive. The current price of 5.12 is above the 20-day moving average (MA) of 4.73, above the 50-day MA of 4.77, and above the 200-day MA of 4.66, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 71.94 is Negative, neither overbought nor oversold. The STOCH value of 83.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ALV.
Alvopetro Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$186.44M | 8.55 | 19.30% | 10.11% | -22.78% | -43.14% | |
73 Outperform | $2.66B | 8.08 | 9.38% | 24.55% | 3.08% | -30.22% | |
73 Outperform | C$3.66B | 12.84 | 10.37% | 7.17% | -9.52% | -11.68% | |
66 Neutral | $6.34B | 29.44 | 7.84% | 3.98% | -0.78% | -5.44% | |
62 Neutral | C$3.79B | 77.76 | 3.62% | 5.32% | -2.25% | -3.28% | |
58 Neutral | $9.12B | 5.24 | -7.59% | 7.51% | 0.53% | -65.25% | |
47 Neutral | $261.47M | ― | -27.57% | 8.51% | 2.24% | -332.95% |
* Energy Sector Average
Performance Comparison
TSE:ALV
Alvopetro Energy
5.12
1.51
41.83%
TSE:POU
Paramount Resources
17.42
3.20
22.46%
TSE:PSK
PrairieSky Royalty
26.96
0.26
0.97%
TSE:PNE
Pine Cliff Energy
0.72
-0.20
-21.57%
TSE:PEY
Peyto Exploration & Dev
18.53
4.40
31.14%
TSE:TPZ
Topaz Energy Corp
25.02
3.64
17.03%
Alvopetro Energy Earnings Call Summary
Earnings Call Date: Mar 18, 2025 | % Change Since: 14.54% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in production, reserve increases, and strategic expansion into new markets, demonstrating a positive outlook for 2025. While there were some financial challenges in Q4 2024, such as decreased operating netback and foreign exchange losses, the overall sentiment remains optimistic due to operational achievements and strategic initiatives.Highlights
Increased Production Capacity
Alvopetro's January and February production averaged 2,375 barrels of oil equivalent per day, up 37% from Q4 2024 production.
Dividend Increase
Announced an increase in the dividend for Q1 2025 to US$0.10 per share, reflecting a 12% yield at current share prices.
Significant Reserve Growth
Proved reserves increased by 65% and proved + probable reserves increased by 5% year-over-year.
Strong Operating Netback Margin
Despite a slight decrease, the operating netback remained high at 86%.
Debt-Free Status
Maintained a strong balance sheet with $13.2 million in working capital and no debt since September 2022.
Strategic Expansion into Canada
Entered the Western Canadian Sedimentary Basin, targeting Mannville heavy oil fairway with promising new technologies.
Successful Contract Revision
Revised gas sales agreement with Bahiagás, increasing firm sales by 33% and removing previous contractual ceiling provisions.
Lowlights
Decreased Q4 Operating Netback
Operating netback decreased by $4.10 from the previous quarter, primarily due to lower sales volumes and prices.
Foreign Exchange Losses
Experienced a $2 million foreign exchange loss in Q4 2024, a significant swing from a $600,000 gain in Q3.
Reduced Natural Gas Sales Price
Natural gas sales price decreased by about 4% from the previous quarter.
Sales Volume Reduction
Q4 2024 saw a 17% reduction in sales volumes compared to Q3.
Company Guidance
In the Q4 2024 results webcast, Alvopetro provided detailed guidance for 2025, highlighting several key metrics. The company has increased its firm natural gas supply to Bahiagás by 33%, leading to an average production of 2,375 barrels of oil equivalent per day in January and February, up 37% from Q4 2024. The operating netback was reported at $55.09, with a margin of 86%, despite a 4% reduction in realized sales price and a 17% reduction in volumes. Alvopetro announced a dividend increase to US$0.10 per share for Q1 2025, reflecting higher sales volumes. The year-end reserve report showed a 65% increase in 1P reserves, totaling 4.5 million BOE, and a 5% increase in 2P reserves, totaling 9.1 million BOE. The company's balance sheet remains strong, with $13.2 million in working capital and no debt. Alvopetro has strategically entered the Canadian market, drilling two wells in the Mannville heavy oil fairway, aiming to capitalize on multi-zone reservoirs. The company projects a strong 2025 with a focus on maintaining a balanced capital allocation model, emphasizing both organic growth and stakeholder returns.Alvopetro Energy Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Alvopetro Energy Reports Strong Start to 2025 with Increased Gas Sales and Reserve Growth
Positive
Mar 18, 2025
Alvopetro Energy Ltd. reported a 37% increase in natural gas sales volumes for the start of 2025, attributed to enhanced productive capacity and an updated gas sales agreement. The company announced a quarterly dividend increase to US$0.10 per share, reflecting its commitment to balanced capital allocation. Alvopetro also revealed significant reserve increases, with 1P reserves up by 65% and 2P reserves by 5%, boosting the company’s net present value and indicating strong future potential. The company is actively expanding its operations with new drilling projects in both the Murucututu natural gas field and Western Saskatchewan.
Business Operations and StrategyFinancial Disclosures
Alvopetro Energy Reports February Sales and Strategic Focus
Neutral
Mar 5, 2025
Alvopetro Energy reported February 2025 sales volumes of 2,285 barrels of oil equivalent per day, with natural gas sales reaching 13.0 million cubic feet per day. The sales volumes were slightly impacted by reduced demand in the last week of February, but March sales are expected to align with January levels. The company’s strategic focus on organic growth and balanced capital allocation continues to support its operations and stakeholder returns.
Business Operations and StrategyFinancial Disclosures
Alvopetro Energy Boosts Reserves and Market Position with Successful 2024 Developments
Positive
Feb 27, 2025
Alvopetro Energy Ltd. reported a significant increase in its reserves as of December 31, 2024, with a 65% rise in total proved (1P) reserves to 4.5 MMboe and a 5% increase in total proved plus probable (2P) reserves to 9.1 MMboe. The company’s net present value (NPV10) of these reserves also saw substantial growth, with a 53% increase for 1P reserves and a 6% increase for 2P reserves. This growth is attributed to a successful redetermination of working interest in the Caburé field and successful results from the 183-A3 well in the Murucututu project. These developments have enabled Alvopetro to commit to higher sales volumes with its offtaker, Bahiagás, for 2025, enhancing its capital allocation strategy and strengthening its market position.
Business Operations and StrategyFinancial Disclosures
Alvopetro Energy Reports Strong January Sales and Strategic Developments
Positive
Feb 5, 2025
Alvopetro Energy Ltd. reported significant growth in sales volumes for January 2025, with a 41% increase from Q4 2024. The company achieved sales of 2,457 boepd, largely driven by natural gas. Additionally, Alvopetro adjusted its natural gas prices under a long-term agreement, reflecting market conditions. Operationally, the company faced challenges with a project on Block 183, incurring costs of $4 million. However, it plans to continue development with new wells at the Murucututu field and Caburé Unit, signaling ongoing expansion efforts.
Alvopetro Energy Reports December 2024 Sales Volumes Amid New Gas Agreement
Jan 6, 2025
Alvopetro Energy Ltd. reported December 2024 sales volumes of 1,828 boepd, with significant contributions from natural gas and associated natural gas liquids. The company experienced reduced demand from Bahiagás during late December but has commenced January deliveries under a new long-term gas sales agreement. The updated contract sets daily firm volumes at 400 e3m3/d, which could stabilize and potentially enhance future sales performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.