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Canacol Energy Ltd. (TSE:CNE)
:CNE
Top Page
Canacol Energy
(OTC:CNE)
68Neutral
Canacol Energy (CNE) vs. S&P 500 (SPY)
Market Cap
C$124.20M
Dividend Yield7.46%
Average Volume (3M)28.83K
Price to Earnings (P/E)4.1
Beta (1Y)1.13
Revenue Growth14.77%
EPS Growth-96.89%
CountryCA
Employees396
SectorEnergy
Sector Strength72
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.90
Shares Outstanding34,119,987
10 Day Avg. Volume15,330
30 Day Avg. Volume28,834
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.24
Price to Cash Flow (P/CF)1.00
P/FCF Ratio13.80
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
Canacol Energy Business Overview & Revenue Model
Company DescriptionCanacol Energy Ltd. engages in the exploration and development of petroleum and natural gas. It focuses on the commercialization of its Colombian gas reserves, and resource base. The company was founded by Charle A. Gamba, Luis Baena and David Anthony Winter on July 20, 1970 and is headquartered in Calgary, Canada.
How the Company Makes MoneyCanacol Energy makes money through the exploration, production, and sale of natural gas. The company's revenue model primarily revolves around the sale of extracted natural gas to industrial and commercial customers within Colombia, leveraging long-term contracts to ensure a steady revenue stream. Canacol Energy's earnings are significantly influenced by its ability to maintain and expand its gas production capabilities, control operational costs, and secure favorable pricing in its supply contracts. Additionally, the company may engage in strategic partnerships or joint ventures to enhance its operational capacity and market reach, further contributing to its revenue generation.
Canacol Energy Financial Statement Overview
Summary
Overall, Canacol Energy exhibits a solid operational performance with strong margins but faces challenges with high leverage and fluctuating profitability. While the company effectively generates cash from operations, heavy capital expenditures impact its free cash flow.Income Statement
Canacol Energy shows a moderate revenue growth rate with some fluctuations over the past years. The gross profit margin is strong, indicating effective cost management, while the net profit margin is lower, reflecting potential challenges in controlling expenses or non-operating costs. The EBIT and EBITDA margins are solid, highlighting operational efficiency. However, the recent TTM period shows a decline in net income, which could indicate profitability issues.65
Positive
Balance Sheet
The company's balance sheet reveals a high debt-to-equity ratio, suggesting significant leverage which could be risky in volatile markets. However, the return on equity is reasonable, indicating that the company is generating a fair return on shareholders' investments. The equity ratio is stable, reflecting a balanced use of equity financing despite high debt levels.70
Positive
Cash Flow
Canacol Energy's cash flow statement indicates fluctuating free cash flow, with the TTM period showing some improvement. The operating cash flow to net income ratio is strong, suggesting effective cash generation from operations. However, the high capital expenditures impact free cash flow, which could constrain financial flexibility.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 355.32M | 315.80M | 335.71M | 310.54M | 278.81M | 242.08M | Gross Profit |
| 276.52M | 275.59M | 239.57M | 216.59M | 212.10M | 187.80M | EBIT |
| 168.00M | 237.96M | 128.38M | 93.25M | 116.11M | 96.96M | EBITDA |
| 246.78M | 183.71M | 168.70M | 158.30M | 172.72M | 149.81M | Net Income Common Stockholders |
| 22.60M | 86.24M | 147.27M | 15.18M | -4.74M | 34.25M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 53.10M | 39.42M | 60.79M | 138.52M | 68.57M | 41.24M | Total Assets |
| 705.00M | 1.23B | 1.01B | 843.76M | 749.79M | 754.06M | Total Debt |
| 361.16M | 676.43M | 512.18M | 512.57M | 390.07M | 368.68M | Net Debt |
| 309.52M | 637.01M | 453.66M | 374.05M | 321.80M | 327.44M | Total Liabilities |
| 499.57M | 881.75M | 722.91M | 658.63M | 542.42M | 511.32M | Stockholders Equity |
| 205.44M | 351.67M | 291.94M | 185.13M | 207.37M | 242.75M |
| Cash Flow | Free Cash Flow | ||||
| 5.68M | -67.13M | 93.77M | 66.66M | 92.33M | 42.07M | Operating Cash Flow |
| 148.18M | 95.34M | 185.43M | 123.81M | 152.32M | 108.35M | Investing Cash Flow |
| -156.67M | -206.11M | -179.91M | -101.48M | -88.96M | -84.26M | Financing Cash Flow |
| 28.23M | 83.83M | -80.67M | 51.53M | -33.41M | -34.48M |
Canacol Energy Technical Analysis
Negative
3.69
Price Trends
3.76
Negative
3.62
Positive
3.83
Negative
Market Momentum
>-0.01
Positive
45.45
Neutral
35.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CNE, the sentiment is Negative. The current price of 3.69 is below the 20-day moving average (MA) of 3.80, below the 50-day MA of 3.76, and below the 200-day MA of 3.83, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 35.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CNE.
Canacol Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Performance Comparison
TSE:CNE
Canacol Energy
3.69
-1.93
-34.34%
GTE
Gran Tierra Energy
4.59
-1.55
-25.24%
PRMRF
Paramount Resources
11.25
1.41
14.33%
AOIFF
Africa Oil
1.30
-0.22
-14.47%
PARXF
Parex Resources
8.87
-4.98
-35.96%
AETUF
ARC Resources
17.96
1.40
8.45%
Canacol Energy Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: 18.65% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Canacol's strong financial performance with record EBITDAX, increased natural gas prices, and a favorable arbitration ruling enhancing results. The positive outcomes were partially offset by non-commercial results from the Cardamomo-1 well and an increase in deferred tax expense. Overall, the sentiment remains positive, driven by efficient operations and strategic market positioning.Highlights
Record EBITDAX Achievement
The third quarter of 2024 was a record-breaking one for Canacol with EBITDAX reaching a new high of $86 million, representing a 38% increase from the same period in 2023.
Increase in Realized Natural Gas Prices
Realized natural gas prices for the quarter were $6.69 per Mcf, a 24% increase compared to the same period in 2023.
Strong Operational Margins
Canacol maintained strong operational margins of 78% with a 27% increase in netbacks to $5.25 per Mcf compared to Q3 2023.
Favorable Arbitration Ruling
Canacol received a $14.2 million ruling in its favor from an arbitration process with Promigas, a gas transportation company, contributing to the quarter's financial success.
Improved Net Income
Reported net income of $10.3 million for Q3 2024, a substantial improvement from the net loss of $0.5 million in the same period in 2023.
Strong Liquidity Position
Canacol ended the quarter with $67.1 million in cash and cash equivalents and a working capital surplus of $62.1 million, marking its strongest cash position since Q1 2023.
Successful Well Drilling
Drilled Chontaduro 3 and Nispero-2, which successfully produced gas, contributing to production stabilization and growth.
Lowlights
Non-commercial Exploration Result
The Cardamomo-1 exploration well encountered 203 feet of net poor sandstone with non-commercial amounts of natural gas.
Deferred Income Tax Expense Impact
An increase in deferred income tax expense of $5.3 million impacted Q3 2024 due to FX changes, partially offsetting net income growth.
Lower Realized Natural Gas Sales Volumes
Realized natural gas sales volumes were 10% lower during Q3 2024 compared to the same period in 2023.
Company Guidance
During the Canacol Energy Q3 2024 earnings call, several key metrics and guidance were provided. The company's EBITDAX reached a record high of $86 million, driven by a 24% increase in realized natural gas prices to $6.69 per Mcf, resulting in a netback of $5.25 per Mcf and maintaining a strong operational margin of 78%. Total revenues net of royalties and transportation expenses were reported at $87.9 million, a 15% increase from the same period in 2023. The company also achieved a significant improvement in adjusted EBITDAX, which rose by 38% to $85.8 million, and adjusted funds from operations increased by 18% to $57.9 million. Capital expenditures for the quarter were $23.9 million, reflecting a reduction from the previous year, while the company also secured a 24-month $75 million senior secured term loan facility to bolster its financial position. Looking ahead, Canacol expects to maintain a reserve replacement ratio of approximately 120% for the full year 2024, with plans for additional drilling activities and strategic investments in Bolivia slated for the second half of 2025.Canacol Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
Canacol Energy Reports Strong 2024 Financials and Drilling Outcomes
Positive
Jan 27, 2025
Canacol Energy Ltd. reported robust financial performance in 2024, surpassing its EBITDAX guidance driven by higher natural gas and electricity prices in Colombia. The company’s drilling activities showed mixed results with successful gas finds at several wells, while one well was abandoned due to non-commercial gas presence.
Canacol Energy Reports Drilling Progress in Colombia
Dec 20, 2024
Canacol Energy Ltd. has announced updates on its exploration and development drilling programs in Colombia, highlighting successful production from the Pibe-1 exploration well and ongoing efforts with the Natilla-2 well. The company continues to advance its operations with the spudding of the Pibe-2 appraisal well and plans for the Clarinete-11 development well.
Canacol Energy Reports Strong Q3 2024 Financial Results
Nov 7, 2024
Canacol Energy Ltd. has reported a record adjusted EBITDAX of $86 million for the third quarter of 2024, driven by higher sales prices for natural gas and LNG and a favorable arbitration settlement. The company’s net income improved significantly compared to the previous year, despite a reduction in natural gas sales volume. The results highlight Canacol’s strong financial performance amid strategic operational adjustments.
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.