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NG Energy International (TSE:GASX)
:GASX

NG Energy International (GASX) AI Stock Analysis

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NG Energy International

(GASX)

Rating:56Neutral
Price Target:
C$1.00
▲(6.38%Upside)
NG Energy's strong corporate events and strategic initiatives are significant positives, but the overall score is tempered by ongoing profitability and cash flow challenges. The technical indicators suggest moderate stock momentum, but valuation concerns remain due to negative earnings.

NG Energy International (GASX) vs. iShares MSCI Canada ETF (EWC)

NG Energy International Business Overview & Revenue Model

Company DescriptionNG Energy International Corp., an oil and gas company, engages in the acquisition, exploration, development, and exploitation of oil and natural gas assets in Colombia. It holds working interests in the SN-9 block, which covers an area of approximately 311,353 acres; the Maria Conchita block, covering an area of approximately 32,518 acres; and the Tiburon Block that covers an area of approximately 245,850 acres. The company was formerly known as NGX Energy International Corp. and changed its name to NG Energy International Corp. in November 2020. NG Energy International Corp. is headquartered in Vancouver, Canada.
How the Company Makes MoneyNG Energy International generates revenue through the exploration, production, and sale of natural gas. The company monetizes its natural gas reserves by extracting and processing the gas, which is then sold to industrial, commercial, and residential customers. Key revenue streams include long-term supply contracts with utility companies, spot market sales, and partnerships with other energy firms for joint exploration and production initiatives. Additionally, the company may engage in strategic alliances and leverage its expertise in energy infrastructure to enhance its profitability.

NG Energy International Financial Statement Overview

Summary
NG Energy International shows strong revenue growth, with a 217% increase, but struggles with profitability and cash flow. Reduced leverage is a positive sign, yet negative margins and cash flow issues remain significant challenges.
Income Statement
40
Negative
The income statement shows significant revenue growth over the years, particularly from 2023 to 2024, with a 217% increase. However, profitability remains a challenge with consistent negative net income, resulting in a negative net profit margin. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Despite revenue growth, the company struggles to convert it into profit.
Balance Sheet
55
Neutral
The balance sheet reflects an improved equity position with a debt-to-equity ratio of 0.91 in 2024 compared to 8.14 in 2023, indicating reduced leverage and greater financial stability. However, the company still has substantial total debt, which poses a risk. The equity ratio has improved, suggesting better asset management, but overall profitability remains low as indicated by the negative ROE.
Cash Flow
35
Negative
The cash flow statement reveals challenges in generating positive free cash flow, although there is a notable improvement in operating cash flow in 2024. The free cash flow growth rate is negative, indicating ongoing issues in cash generation. The ratios of operating and free cash flow to net income are not favorable, reflecting inefficiencies in translating earnings into cash.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
38.21M12.04M1.77M0.000.00
Gross Profit
22.33M4.54M430.47K-6.77K-17.25K
EBIT
-1.13M-7.32M-5.92M-5.30M-3.86M
EBITDA
-31.30M-423.42K-4.90M-5.28M-3.84M
Net Income Common Stockholders
-53.70M-16.68M-9.97M-7.32M-24.23M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.19M1.29M6.96M5.85M1.21M
Total Assets
113.47M106.86M83.15M23.15M14.47M
Total Debt
40.63M82.18M55.43M2.99M4.01M
Net Debt
32.45M80.89M48.47M-2.86M2.80M
Total Liabilities
68.65M96.77M67.64M6.41M7.81M
Stockholders Equity
44.82M10.09M15.51M16.73M6.66M
Cash FlowFree Cash Flow
-287.33K-22.47M-34.23M-10.73M-7.08M
Operating Cash Flow
18.47M-3.55M-3.59M-5.24M-2.57M
Investing Cash Flow
-23.60M-23.79M-28.31M-5.93M-4.04M
Financing Cash Flow
12.58M21.39M33.56M15.92M6.36M

NG Energy International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.94
Price Trends
50DMA
0.90
Positive
100DMA
0.95
Negative
200DMA
0.98
Negative
Market Momentum
MACD
<0.01
Positive
RSI
57.04
Neutral
STOCH
53.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GASX, the sentiment is Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.90, and below the 200-day MA of 0.98, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 53.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GASX.

NG Energy International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSALV
76
Outperform
C$217.18M8.9720.38%8.67%-10.32%-12.38%
TSIPO
61
Neutral
C$260.40M28.381.69%11.07%-14.73%-71.36%
57
Neutral
$7.22B3.11-4.49%5.63%0.82%-49.15%
56
Neutral
C$237.26M-80.24%73.53%48.09%
$149.40M-29.28%10.34%
TSSEI
36
Underperform
C$199.45M-46.55%-104.32%
$86.49M-34.33%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:GASX
NG Energy International
0.94
0.12
14.63%
PIFYF
Pine Cliff Energy
0.42
-0.32
-43.24%
TSE:ALV
Alvopetro Energy
5.98
1.75
41.37%
TSE:SEI
Sintana Energy
0.51
-0.72
-58.54%
TSE:IPO
InPlay Oil Corp.
9.33
-1.74
-15.72%
TETHF
Tethys Petroleum
0.68
-0.04
-5.56%

NG Energy International Corporate Events

Business Operations and StrategyFinancial Disclosures
NG Energy Reports Transformative Q1 2025 Results Amid Strategic Growth Initiatives
Positive
May 28, 2025

NG Energy International Corp. has reported its Q1 2025 financial results, highlighting a transformative period marked by the sale of a 40% working interest in the Sinu-9 field for $150 million, which has strengthened its balance sheet. The company has resumed production at Sinu-9 and is advancing infrastructure projects to increase capacity, despite facing operational challenges at Maria Conchita. The strategic partnership with Maurel & Prom and ongoing infrastructure enhancements position NG Energy for robust growth in the latter half of 2025, aiming to capitalize on Colombia’s tight natural gas market.

The most recent analyst rating on (TSE:GASX) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on NG Energy International stock, see the TSE:GASX Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
NG Energy Reports Record Revenue and Strategic Advances in 2024
Positive
Apr 29, 2025

NG Energy International Corp. has announced the filing of its annual audited consolidated financial statements for the fiscal year ending December 31, 2024. The company reported a record annual revenue of US$38.2 million, a 218% increase from the previous year, and significant growth in its reserves and production capacity. The sale of a 40% working interest in the Sinu-9 Block for US$150 million has strengthened its operational capabilities and improved its balance sheet. Despite some production challenges at Maria Conchita, the company is on track to increase its production capacity significantly by Q3 2025.

Product-Related AnnouncementsBusiness Operations and Strategy
NG Energy Achieves Strong Production at Sinu-9, Plans Expansion
Positive
Apr 25, 2025

NG Energy International Corp. announced successful production from its Magico-1X and Brujo-1X wells at the Sinu-9 site, achieving steady production volumes exceeding 10 MMcf/d. The company plans to increase production capacity to over 40 MMcf/d by early Q3 2025 with new equipment installations, positioning itself as a key player in Colombia’s natural gas market.

Business Operations and StrategyFinancial Disclosures
NG Energy Reports Significant Growth in Year-End Reserves
Positive
Apr 24, 2025

NG Energy International Corp. has announced a significant increase in its year-end reserves and resources for 2024, with notable growth in its 1P, 2P, and 3P reserves. This development is attributed to infrastructure advancements and favorable long-term natural gas price forecasts in Colombia. The company plans to enhance drilling activities in 2025, aiming to capitalize on the structural supply shortage and high natural gas prices in the region.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
NG Energy Advances Operations Amid Rising Colombian Gas Prices
Positive
Mar 27, 2025

NG Energy International Corp. has announced significant operational advancements at its Sinu-9 Block and Maria Conchita projects. At Sinu-9, the company has commissioned a mobile plant and is expanding its processing capacity, while at Maria Conchita, it is addressing production challenges and planning to increase capacity. Additionally, the company has received an initial payment of $20 million from Etablissements Maurel & Prom S.A. for a 40% interest in Sinu-9, with the remaining payment contingent on certain conditions. These developments are set against a backdrop of rising natural gas prices in Colombia, driven by increased import dependency.

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.