Kelt Exploration (KEL) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: N/A
• Average Volume (3M): 404.85K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.10
• Revenue Growth: 6.97%
• EPS Growth: 9.34%
• Country: CA
• Employees: 77
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.16
• Shares Outstanding: 199,315,730
• 10 Day Avg. Volume: 512,191
• 30 Day Avg. Volume: 404,850
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 3.41
• Enterprise Value/Gross Profit: 12.25
• Enterprise Value/Ebitda: 6.06
• 1Y Price Target: $9.00
• Price Target Upside: 42.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: C$7.00 ▲(10.58% Upside)

Kelt Exploration's overall stock score reflects a stable financial position with a strong balance sheet and fair valuation. However, technical indicators suggest mixed momentum, and negative free cash flow poses a potential risk to future growth. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and capitalize on energy demand, supporting long-term business sustainability.

Improved Net Profit Margin

Improved net profit margins reflect better cost management and operational efficiency, contributing to stronger profitability and shareholder value.

Negative Factors

Negative Free Cash Flow

Negative free cash flow can limit the company's ability to reinvest in growth initiatives and may pose liquidity challenges, affecting long-term financial health.

Operational Challenges

Decreasing EBIT and EBITDA margins suggest operational inefficiencies, which could hinder profitability and competitiveness in the long run.

Cash Flow Concerns

Challenges in converting profits to free cash flow may impact the company's ability to fund operations and growth, posing a risk to financial stability.

Kelt Exploration Business Overview & Revenue Model

Company Description

Kelt Exploration Ltd., an oil and gas company, engages in the exploration, development, and production of crude oil and natural gas resources primarily in northwestern Alberta and northeastern British Columbia, Canada. The company markets its crude oil, natural gas, and natural gas liquids production primarily to third party marketing companies. As of December 31, 2021, it had proved developed producing reserves of 43.9 million barrels of oil equivalent (BOE); total proved reserves of 134.1 million BOE; and total proved plus probable reserves of 254.1 million BOE. Kelt Exploration Ltd. was incorporated in 2012 and is headquartered in Calgary, Canada.

How the Company Makes Money

Kelt Exploration generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids produced from its operations. The company employs a business model that focuses on low-cost production and high-margin assets, allowing it to capitalize on market demand for energy resources. Key revenue streams include the direct sale of hydrocarbons to various customers, including refineries and energy companies, as well as long-term supply agreements that provide stable cash flows. Additionally, Kelt's strategic partnerships and joint ventures in the exploration and development of its resource properties enhance its operational efficiency and reduce financial risks, contributing to its overall earnings.

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	478.97M	468.43M	436.41M	613.36M	316.76M	207.16M
Gross Profit	133.38M	134.48M	141.51M	308.60M	121.85M	-348.07M
EBITDA	269.59M	208.32M	241.60M	330.29M	229.39M	-282.45M
Net Income	74.11M	45.42M	85.97M	158.76M	114.26M	-324.81M
Balance Sheet
Total Assets	1.56B	1.45B	1.26B	1.13B	913.50M	759.99M
Cash, Cash Equivalents and Short-Term Investments	70.00K	228.00K	14.34M	125.00K	719.00K	31.57M
Total Debt	153.24M	111.07M	1.46M	12.35M	2.16M	1.46M
Total Liabilities	440.92M	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	-127.00M	-124.00M	630.00K	-11.56M	-62.65M	-92.83M
Operating Cash Flow	247.86M	209.15M	283.22M	306.02M	159.71M	59.28M
Investing Cash Flow	-392.29M	-336.57M	-265.49M	-328.94M	-191.54M	326.61M
Financing Cash Flow	144.00M	113.31M	-3.52M	22.33M	973.00K	-362.68M

Kelt Exploration Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KEL, the sentiment is Negative. The current price of 6.33 is below the 20-day moving average (MA) of 6.64, below the 50-day MA of 6.74, and below the 200-day MA of 6.74, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 39.89 is Neutral, neither overbought nor oversold. The STOCH value of 27.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.23B	13.86	9.64%	9.42%	-9.20%	-25.28%
PXT	76 Outperform	$1.69B	9.78	6.62%	8.44%	-20.60%	-56.33%
HWX	73 Outperform	$1.65B	8.92	25.93%	5.83%	8.47%	-1.60%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KEL	64 Neutral	$1.22B	16.58	6.73%	―	6.97%	9.34%
VET	54 Neutral	$1.56B	―	4.40%	4.79%	-1.60%	76.21%
MER	45 Neutral	C$1.15B	―	-26.19%	5.98%	―	-523.86%

Kelt Exploration Corporate Events

Kelt Exploration Faces Production Delays Due to Gas Plant Start-Up Issues

Kelt Exploration Ltd. announced that the start-up of the third-party operated Albright Gas Plant, which is crucial for its operations in the Wembley/Pipestone area, has been delayed due to equipment issues. The delay affects Kelt’s production capacity, as the company has contracted a significant portion of the plant’s processing capacity. The delay could impact Kelt’s 2025 production guidance, with a potential reduction in daily average production if the plant’s start-up continues to be postponed.

The most recent analyst rating on (TSE:KEL) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Kelt Exploration stock, see the TSE:KEL Stock Forecast page.

Kelt Exploration Reports Strong Earnings Growth in 2025

Kelt Exploration Ltd. is a Canadian company engaged in the exploration, development, and production of petroleum and natural gas, operating primarily in the oil and gas sector. The company is known for its strategic focus on resource-rich areas in Western Canada.

Kelt Exploration Sees Strong Q2 Performance with Increased Production

Kelt Exploration Ltd. reported a significant increase in both financial and operational performance for the second quarter of 2025. The company’s net income rose by 198% compared to the previous year, driven by a 26% increase in average daily production, despite a decline in realized oil and NGL prices. The results reflect Kelt’s strategic focus on enhancing production efficiency and managing costs, positioning it favorably within the industry.

The most recent analyst rating on (TSE:KEL) stock is a Buy with a C$8.00 price target. To see the full list of analyst forecasts on Kelt Exploration stock, see the TSE:KEL Stock Forecast page.