Canacol Energy (CNE) AI Stock Analysis

• Market Cap: C$52.20M
• Dividend Yield: N/A
• Average Volume (3M): 33.02K
• Price to Earnings (P/E): 0.9
• Beta (1Y): 1.26
• Revenue Growth: -7.68%
• EPS Growth: 79.37%
• Country: CA
• Employees: 396
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.76
• Shares Outstanding: 34,100,000
• 10 Day Avg. Volume: 58,044
• 30 Day Avg. Volume: 33,025
• PEG Ratio: 0.02
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 0.96
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: C$1.50 ▼(-1.96% Downside)

The overall stock score reflects a company with strong operational efficiency and improving cash flow, but facing significant challenges in revenue growth and high leverage. Technical indicators suggest bearish momentum, while the valuation indicates potential undervaluation. Mixed sentiment from the earnings call further tempers the outlook.

Positive Factors

Operational Efficiency

Strong EBIT and EBITDA margins indicate effective cost management and operational efficiency, which can support profitability and competitive positioning over the long term.

Stable Cash Flow

Adequate cash flow relative to net income ensures liquidity and the ability to fund operations and investments, supporting long-term business sustainability.

High Operating Margins

High operating margins reflect strong pricing power and cost control, which can enhance profitability and provide a buffer against market volatility.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase vulnerability to economic downturns, potentially impacting long-term financial stability.

Negative Profitability

Negative profitability indicates challenges in converting revenue into profit, which can hinder growth and shareholder returns if not addressed.

Production Delays

Production delays can disrupt revenue streams and operational plans, affecting the company's ability to meet market demand and financial targets.

Canacol Energy Business Overview & Revenue Model

Company Description

Canacol Energy Ltd., an oil and gas company, engages in the exploration, development, and production of natural gas in Colombia. As of December 31, 2021, it had a total proved developed producing reserves of 236 billion cubic feet (Bcf) conventional natural gas; a total proved plus probable reserves of 607 Bcf conventional natural gas; and a total proved reserves of 368 Bcf conventional natural gas. The company was incorporated in 1970 and is headquartered in Calgary, Canada.

How the Company Makes Money

Canacol Energy generates revenue primarily through the production and sale of natural gas and crude oil. The company sells its natural gas to industrial clients, power generation companies, and local distribution companies, which are often tied to long-term contracts that provide stable cash flows. Additionally, Canacol has a growing portfolio of oil production, which contributes to its revenue. The company has also established partnerships with various stakeholders, including utility companies and other energy firms, which help secure customer bases and enhance its market position. Factors contributing to earnings include operational efficiency, favorable pricing for natural gas, and the successful execution of exploration and development projects.

Canacol Energy Financial Statement Overview

Summary

Canacol Energy faces challenges in revenue growth and profitability, with high leverage posing financial risks. While operational efficiency is evident in EBIT and EBITDA margins, the negative net profit margin and ROE are concerning. Cash flow generation is under pressure, but cash flow ratios remain adequate. The company needs to address revenue growth and leverage to improve its financial health.

Income Statement

Canacol Energy's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data reveals a decline in revenue growth rate by 7.41%, indicating challenges in maintaining sales momentum. The gross profit margin remains strong at 78.29%, but the net profit margin is negative at -1.24%, reflecting profitability issues. EBIT and EBITDA margins are relatively healthy at 50.75% and 72.46%, respectively, suggesting operational efficiency. However, the negative net profit margin is a concern.

Balance Sheet

The balance sheet highlights significant leverage with a debt-to-equity ratio of 2.27, which is high and indicates potential financial risk. The return on equity is negative at -1.35%, pointing to inefficiencies in generating returns for shareholders. The equity ratio stands at 29.58%, showing a moderate level of equity financing. Overall, the high leverage and negative ROE are key weaknesses.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 40.06% in the TTM period, indicating cash generation challenges. The operating cash flow to net income ratio is 1.16, suggesting adequate cash flow relative to net income. The free cash flow to net income ratio is 0.63, showing some ability to convert earnings into cash. Despite the decline in free cash flow growth, the company maintains reasonable cash flow ratios.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	319.08M	375.92M	315.80M	335.71M	310.54M	278.81M
Gross Profit	243.44M	294.13M	239.88M	239.57M	216.59M	212.10M
EBITDA	211.98M	262.20M	183.71M	168.70M	158.30M	172.72M
Net Income	38.88M	-32.73M	86.24M	147.27M	15.18M	-4.74M
Balance Sheet
Total Assets	1.29B	1.22B	1.23B	1.01B	843.76M	749.79M
Cash, Cash Equivalents and Short-Term Investments	36.54M	79.20M	39.42M	60.79M	138.52M	68.57M
Total Debt	723.21M	728.24M	676.43M	512.18M	512.57M	390.07M
Total Liabilities	906.82M	894.64M	881.75M	722.91M	658.63M	542.42M
Stockholders Equity	385.60M	321.14M	351.67M	291.94M	185.13M	207.37M
Cash Flow
Free Cash Flow	40.93M	95.27M	-67.13M	93.77M	66.66M	92.33M
Operating Cash Flow	186.37M	168.04M	95.34M	185.43M	123.81M	152.32M
Investing Cash Flow	-150.14M	-102.25M	-206.11M	-179.91M	-101.48M	-88.96M
Financing Cash Flow	-69.14M	-22.63M	83.83M	-80.67M	51.53M	-33.41M

Canacol Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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 1.53 is below the 20-day moving average (MA) of 1.53, below the 50-day MA of 1.91, and below the 200-day MA of 2.55, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 17.61 is Positive, neither overbought nor oversold. The STOCH value of 42.55 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CNE	58 Neutral	C$52.20M	0.95	10.62%	―	-7.68%	79.37%
ROK	55 Neutral	C$49.00M	-8.98	-5.42%	―	-13.32%	-811.11%
TXP	46 Neutral	C$43.84M	-7.58	-4.64%	―	-23.68%	75.45%
NSE	44 Neutral	C$58.12M	-4.34	-467.35%	―	―	-63.05%
EOG	41 Neutral	C$126.09M	-42.86	-11.95%	―	―	86.19%
OYL	39 Underperform	C$40.63M	-0.50	-188.43%	―	―	-1886.78%

Canacol Energy Corporate Events

Canacol Energy Confirms Gas Reserves Audit Results

Canacol Energy Ltd. announced the results of an audit conducted by DeGolyer and MacNaughton on its gas reserves in Colombia, revealing slight discrepancies with previous estimates by BGEC. The audit found minor differences in the estimated proved developed producing, proved developed, and total proved reserves, with a negative variance of up to 7.7% in total proved reserves. Despite these differences, the audit confirms that Canacol’s reserve estimates are largely consistent with DeGolyer and MacNaughton’s findings, providing stakeholders with a reliable assessment of the company’s gas reserves and future revenue potential.

Canacol Energy Seeks Chapter 15 Bankruptcy Protection

Canacol Energy has filed for relief under Chapter 15 of the U.S. Bankruptcy Code to protect its U.S.-based assets and facilitate cooperation between U.S. and foreign courts. The U.S. Bankruptcy Court granted provisional relief, and a hearing on the recognition motion is scheduled for December 11, 2025. This move is part of the company’s restructuring efforts under the Companies’ Creditors Arrangement Act in Canada, with KPMG Inc. acting as the foreign representative.

Canacol Energy Secures Creditor Protection for Restructuring

Canacol Energy Ltd. has been granted creditor protection under the Companies’ Creditors Arrangement Act by the Court of King’s Bench of Alberta, allowing it to restructure its affairs while continuing operations. This move, decided by the company’s Board of Directors, aims to maximize value for stakeholders and preserve business operations amidst financial challenges. The company has also sought recognition of these proceedings in the United States and Colombia. Trading of Canacol’s shares has been suspended on the Toronto Stock Exchange, and a review is scheduled to determine the future of its listing.

Canacol Energy Seeks Creditor Protection Amid Financial Restructuring

Canacol Energy Ltd. has announced that it is seeking creditor protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada to restructure its financial affairs. This decision follows a looming liquidity crisis due to upcoming debt obligations, an unfavorable arbitration decision, reduced natural gas production, and increased payables. The company aims to stabilize its operations and develop a restructuring plan under court supervision, with KPMG Inc. appointed as the monitor. The board and management will remain in place during this process, and the company will seek recognition of these proceedings in the U.S. and Colombia. The Toronto Stock Exchange and other exchanges are expected to review the company’s listing status.

Canacol Energy Reports Improved Q3 Net Income Amid Revenue Decline

Canacol Energy Ltd. reported a net income of $18.7 million for the third quarter of 2025, a significant improvement from the previous year, driven by a non-cash deferred income tax recovery. However, the company faced a decline in total revenues and adjusted EBITDAX due to decreased natural gas and LNG sales volumes. The company is focusing on completing its exploration and development drilling programs and addressing liquidity challenges by engaging with banking groups.

Canacol Energy Faces Arbitration Outcome and Pursues Further Legal Action

Canacol Energy Ltd. has been involved in domestic arbitration proceedings with VP Ingenergía S.A.S. E.S.P. over the termination of three natural gas supply contracts due to VP Ingenergía’s contractual breaches. The arbitration tribunal ruled partially in favor of Canacol, acknowledging the invalidity of VP Ingenergía’s guarantees and their mishandling of gas sale proceeds, but also upheld some of VP Ingenergía’s claims regarding force majeure events. As a result, Canacol is required to pay approximately USD $22 million, although this decision is subject to further clarification. Canacol is also pursuing an international arbitration case against VP Ingenergía, claiming over USD $76 million, and expects a favorable outcome. Additionally, Canacol plans to involve the Office of the Attorney General of the Nation due to alleged criminal actions by VP Ingenergía’s directors and shareholders.