Logan Energy Corp (LGN) AI Stock Analysis

• Market Cap: C$369.87M
• Dividend Yield: N/A
• Average Volume (3M): 208.83K
• Price to Earnings (P/E): 47.8
• Beta (1Y): 0.94
• Revenue Growth: 42.32%
• EPS Growth: N/A
• Country: CA
• Employees: 36
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 577,917,850
• 10 Day Avg. Volume: 184,860
• 30 Day Avg. Volume: 208,831
• PEG Ratio: -1.03
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.48
• 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: C$1.25
• Price Target Upside: 95.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: C$0.50 ▼(-21.88%Downside)

Logan Energy Corp's overall score reflects significant corporate progress and a strong recovery in financial performance. Technical indicators remain stable, offering no strong momentum. However, the high P/E ratio suggests caution due to potential overvaluation. Positive corporate events contribute notably to the strength of the stock.

Positive Factors

Investor Alignment

With insiders owning ~20% and a growth target >50%/year via M&A, there is considerable alignment for growth-oriented investors.

Production Performance

The company's first Duvernay well significantly exceeded LGN type curve expectations, averaging 1,306 bbls/d of oil and 1.2 mmcf/d of natural gas.

Strategic Transactions

The recent transaction shows management's commitment to maintain a strong balance sheet while taking advantage of various cost acquisition highlights.

Negative Factors

Capital Allocation

LGN highlighted a slight beat on production, the replacement of 79% of PDP reserves, and an update to 2025 capex as a result of postponing capital from last quarter.

Cost Efficiency

PDP FD&A cost at $27.11/boe (recycle ratio ~0.7x).

Financial Performance

The PDP value created in 2024 was ~$106mn versus capital spending (net of A&D) of ~$212mn, meaning for every dollar spent, there was a loss of $0.50.

Logan Energy Corp Business Overview & Revenue Model

Company Description

Logan Energy Corp (LGN) is a leading company in the energy sector, focused on the exploration, production, and distribution of natural gas and crude oil. Headquartered in Houston, Texas, Logan Energy operates across various regions in North America and has a growing presence in international markets. The company is committed to providing reliable energy solutions while emphasizing sustainable and environmentally responsible practices.

How the Company Makes Money

Logan Energy Corp generates revenue primarily through the sale of natural gas and crude oil. The company engages in upstream activities, including the exploration and production of these resources, which are then sold to a diverse range of customers, including industrial, commercial, and residential sectors. Additionally, Logan Energy benefits from midstream operations, such as the transportation and storage of energy products, which provide stable cash flows. The company's earnings are further bolstered by strategic partnerships with other energy firms and investments in technology to enhance extraction efficiency and reduce operational costs.

Logan Energy Corp Financial Statement Overview

Summary

Logan Energy Corp is on a growth path, with substantial revenue recovery and improving equity metrics. However, profitability and cash flow sustainability remain concerns, particularly due to high capital expenses. The company needs to address operational efficiency and cash management to enhance financial health.

Income Statement

Logan Energy Corp shows a positive gross profit margin for 2024, recovering from negative margins in 2023. However, the revenue growth rate from 2023 to 2024 reflects a significant increase, indicating a strong recovery trajectory. Despite this, the net profit margin remains low. EBITDA margin shows improvement, but EBIT is still at zero, highlighting challenges in operational profitability.

Balance Sheet

The company maintains a robust equity ratio, supported by significant stockholders' equity relative to total assets. The debt-to-equity ratio is low, suggesting conservative leverage. Return on equity has improved, indicating better utilization of shareholder funds. Overall, the balance sheet reflects financial stability with minimal debt risks.

Cash Flow

Operating cash flow covers net income well, suggesting efficient cash generation. However, the free cash flow is negative due to high capital expenditures, posing a liquidity challenge. Despite positive operating cash flow trends, the substantial free cash flow deficit indicates potential cash management issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022
Income Statement		Total Revenue
113.87M	72.72M	127.86M
	Gross Profit
62.70M	-5.65M	88.50M
	EBIT
4.14M	-33.18M	39.08M
	EBITDA
50.91M	-4.07M	61.42M
	Net Income Common Stockholders
4.55M	-33.80M	39.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
324.00K	53.97M	-251.00K
	Total Assets
365.45M	234.64M	131.90M
	Total Debt
1.30M	150.00K	251.00K
	Net Debt
979.00K	-53.82M	502.00K
	Total Liabilities
90.09M	60.52M	36.11M
	Stockholders Equity
275.36M	174.12M	95.80M
Cash Flow		Free Cash Flow
-161.41M	-61.85M	59.47M
	Operating Cash Flow
50.43M	23.95M	67.11M
	Investing Cash Flow
-196.20M	-68.23M	-22.11M
	Financing Cash Flow
92.10M	98.25M	-45.00M

Logan Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LGN, the sentiment is Positive. The current price of 0.64 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.61, and below the 200-day MA of 0.70, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.63 is Neutral, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LGN.

Logan Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOIL	81 Outperform	C$391.88M	2.50	22.02%	―	37.66%	782.26%
FEC	72 Outperform	$479.23M	27.77	0.67%	3.89%	-0.37%	-92.83%
TNZ	67 Neutral	C$505.24M	187.11	-13.52%	―	-3.50%	-153.25%
LGN	64 Neutral	C$369.87M	47.76	2.74%	―	42.32%	―
Sector *	57 Neutral	$7.22B	3.15	-4.49%	5.63%	0.82%	-49.15%
CEI	55 Neutral	C$446.36M	―	-6.69%	―	41.39%	-61.36%
OBE	50 Neutral	C$499.02M	5.64	-12.88%	―	11.92%	-304.98%

Logan Energy Corp Corporate Events

Logan Energy Completes Pouce Coupe Facility and Sells Interest to Topaz Energy

Logan Energy Corp has completed the construction and commissioning of its Pouce Coupe Facility, which includes a gas plant, compressor station, and oil battery, along with associated pipelines. The company also finalized the sale of a 35% non-operated working interest in the facility to Topaz Energy Corp for $26 million, using the proceeds to reduce bank debt. This commissioning marks a significant milestone for Logan, enabling a substantial increase in production from its Pouce Coupe property, with expectations to more than double output by the second half of 2025, thus strengthening its position in the industry.

The most recent analyst rating on (TSE:LGN) stock is a Buy with a C$1.85 price target. To see the full list of analyst forecasts on Logan Energy Corp stock, see the TSE:LGN Stock Forecast page.

Logan Energy Corp Reports Strong Q1 2025 Results and Expands Credit Facilities

Logan Energy Corp announced its first quarter 2025 results, highlighting a 42% increase in production compared to the previous year and a 62% rise in adjusted funds flow. The company has increased its credit capacity to $150 million and reported strong initial well performance, particularly with the completion of its first Duvernay oil well. Logan also advanced the construction of the Pouce 4-19 Facility, which is expected to enhance its operational capabilities. These developments are likely to strengthen Logan’s market position and provide potential benefits to stakeholders through improved financial metrics and expanded operational capacity.

The most recent analyst rating on (TSE:LGN) stock is a Buy with a C$1.85 price target. To see the full list of analyst forecasts on Logan Energy Corp stock, see the TSE:LGN Stock Forecast page.

Logan Energy Corp Achieves Significant Growth in 2024 Financial Results

Logan Energy Corp reported significant growth in its 2024 financial results, with a 51% increase in production and an 80% rise in adjusted funds flow compared to the previous year. The company successfully executed its growth strategy, doubling crude oil production and increasing its liquids weighting, despite lower natural gas prices. Logan’s strategic investments in infrastructure, including a new gas plant and expansions in key areas, are expected to support continued growth and operational efficiency in 2025.