Kelt Exploration (KEL) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: N/A
• Average Volume (3M): 437.17K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.15
• Revenue Growth: 9.92%
• EPS Growth: 2.74%
• Country: CA
• Employees: 77
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.04
• Shares Outstanding: 199,357,930
• 10 Day Avg. Volume: 578,473
• 30 Day Avg. Volume: 437,174
• PEG Ratio: -0.62
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 2.96
• P/FCF Ratio: -11.18
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 3.31
• Enterprise Value/Gross Profit: 12.37
• Enterprise Value/Ebitda: 6.31
• 1Y Price Target: $9.56
• Price Target Upside: 30.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$8.00 ▲(9.29% Upside)

Kelt Exploration's overall stock score reflects its strong financial performance, particularly in revenue growth and profitability margins, which are the most significant factors. The technical analysis indicates a balanced outlook, while the valuation suggests the stock may be slightly overvalued. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective strategies in expanding operations, supporting long-term business sustainability.

Profitability Margins

Improved profitability margins suggest effective cost management and operational efficiency, enhancing the company's ability to generate profits.

Balance Sheet Health

A low debt-to-equity ratio reflects financial stability and reduces risk, allowing the company to pursue growth opportunities with less financial strain.

Negative Factors

Free Cash Flow Challenges

Negative free cash flow indicates difficulties in converting earnings into cash, which may limit the company's ability to invest in growth or weather downturns.

Gross Profit Margin Pressure

A declining gross profit margin suggests rising costs or pricing pressures, which could impact profitability if not managed effectively.

Cash Management Concerns

Persistent issues with cash management could hinder the company's ability to fund operations and strategic initiatives, affecting long-term growth prospects.

Kelt Exploration Business Overview & Revenue Model

Company Description

Kelt Exploration Ltd. is a Canadian oil and gas exploration and production company focused primarily on the development of its assets in the Western Canadian Sedimentary Basin. The company is engaged in the exploration, acquisition, and production of crude oil and natural gas, with a strong emphasis on sustainable practices and operational efficiency. Kelt's core operations are centered in Alberta and British Columbia, where it aims to optimize resource recovery and maximize shareholder value through innovative exploration techniques and strategic asset management.

How the Company Makes Money

Kelt Exploration generates revenue primarily through the sale of crude oil and natural gas. The company operates in key regions where it has established production facilities, allowing it to efficiently extract and sell hydrocarbons to various markets. Its revenue model is heavily reliant on commodity prices for oil and gas, which can fluctuate based on market demand and geopolitical factors. Additionally, Kelt may engage in joint ventures or partnerships with other exploration and production companies to share resources and mitigate risks, thereby enhancing its revenue opportunities. The company's focus on cost-effective operations and strategic investments in infrastructure further contribute to its profitability.

Kelt Exploration Financial Statement Overview

Summary

Kelt Exploration demonstrates a stable financial position with strengths in its balance sheet, characterized by low leverage and strong equity. The income statement shows positive revenue growth and improved net profit margins, though operational efficiency could be enhanced. Cash flow remains a concern due to negative free cash flow, which could impact future investments and growth.

Income Statement

Kelt Exploration shows a moderate performance in its income statement. The company has a positive revenue growth rate of 5.41% TTM, indicating a recovery from previous declines. Gross profit margin is stable at 26.12% TTM, though it has decreased from previous years. Net profit margin has improved to 11.25% TTM, showing better cost management. However, the EBIT and EBITDA margins have decreased compared to historical highs, suggesting some operational challenges.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.10 TTM, indicating low leverage and financial stability. The equity ratio is solid, reflecting a strong capital structure. Return on equity is modest at 4.97% TTM, showing room for improvement in generating returns for shareholders. Overall, the company maintains a healthy balance sheet with low risk.

Cash Flow

Cash flow performance is mixed. Operating cash flow is strong with a coverage ratio of 1.80 TTM, but free cash flow remains negative, impacting the company's ability to generate cash after capital expenditures. The free cash flow to net income ratio is negative, indicating challenges in converting profits into free cash flow. Despite a slight improvement in free cash flow growth, the negative figures highlight potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	494.36M	468.43M	436.41M	613.36M	316.76M	207.16M
Gross Profit	132.13M	134.48M	141.51M	308.60M	121.85M	-348.07M
EBITDA	258.82M	208.32M	241.60M	330.29M	229.39M	-282.45M
Net Income	57.79M	45.42M	85.97M	158.76M	114.26M	-324.81M
Balance Sheet
Total Assets	1.59B	1.45B	1.26B	1.13B	913.50M	759.99M
Cash, Cash Equivalents and Short-Term Investments	1.34M	228.00K	14.34M	125.00K	719.00K	31.57M
Total Debt	187.06M	111.07M	1.46M	12.35M	2.16M	1.46M
Total Liabilities	477.39M	387.68M	256.63M	226.68M	190.77M	156.30M
Stockholders Equity	1.12B	1.06B	1.00B	901.42M	722.72M	603.68M
Cash Flow
Free Cash Flow	-133.07M	-124.00M	630.00K	-11.56M	-62.65M	-92.83M
Operating Cash Flow	249.52M	209.15M	283.22M	306.02M	159.71M	59.28M
Investing Cash Flow	-393.35M	-336.57M	-265.49M	-328.94M	-191.54M	326.61M
Financing Cash Flow	145.03M	113.31M	-3.52M	22.33M	973.00K	-362.68M

Kelt Exploration Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KEL, the sentiment is Neutral. The current price of 7.32 is below the 20-day moving average (MA) of 7.58, above the 50-day MA of 7.12, and above the 200-day MA of 6.81, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 6.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:KEL.

Kelt Exploration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CJ	77 Outperform	C$1.27B	14.26	8.46%	8.11%	-9.30%	-26.09%
PXT	74 Outperform	$1.67B	10.68	5.77%	8.55%	-20.07%	-53.33%
AAV	70 Neutral	$2.02B	34.06	3.69%	―	27.84%	28.87%
SDE	67 Neutral	$1.49B	36.88	7.22%	―	17.31%	-75.56%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
VET	64 Neutral	$1.92B	-8.25	2.34%	4.01%	-2.32%	70.14%
KEL	61 Neutral	$1.36B	18.26	5.22%	―	9.92%	2.74%

Kelt Exploration Corporate Events

Kelt Exploration Reports Increased Production and Financial Growth Amid Temporary Shutdowns

Kelt Exploration Ltd. reported a 16% increase in average daily production to 37,710 BOE per day for the third quarter of 2025 compared to the same period in 2024. The company faced temporary production shutdowns due to low gas prices and maintenance operations, but all affected production has been restored. Despite a net loss in the third quarter, Kelt achieved significant growth in cash from operations and adjusted funds from operations over the nine-month period, indicating strong operational performance and financial resilience.

Kelt Exploration Updates on Albright Gas Plant Start-Up

Kelt Exploration Ltd. announced the start-up of the Albright Gas Plant, owned by CSV Midstream Solutions Corp., near its operations in Wembley/Pipestone, Alberta. The plant’s commissioning allows Kelt to resume and increase gas deliveries, although the company anticipates a 3% to 5% reduction in its annual production guidance due to previous delays and market conditions. The successful start-up is expected to boost Kelt’s production in the region significantly, enhancing its operational capacity and market position.