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CGX Energy (TSE:OYL)
:OYL

CGX Energy (OYL) AI Stock Analysis

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CGX Energy

(OYL)

38Underperform
CGX Energy faces a challenging environment with financial instability, weak technical indicators, and negative corporate developments. The company's financial situation is precarious due to poor profitability and cash flow issues, which are compounded by the potential loss of a crucial license. These factors outweigh any potential valuation upside, making the stock a high-risk investment at present.

CGX Energy (OYL) vs. S&P 500 (SPY)

CGX Energy Business Overview & Revenue Model

Company DescriptionCGX Energy Inc. is a Canadian-based oil and gas exploration company focused primarily on the exploration and development of petroleum and natural gas resources in the Guyana-Suriname Basin. The company is engaged in the acquisition and exploration of oil properties and holds interests in various exploration licenses in the region. CGX Energy's core business activities include identifying and developing high-potential hydrocarbon resources to meet global energy demands.
How the Company Makes MoneyCGX Energy makes money through its exploration and development activities aimed at discovering commercially viable oil and natural gas reserves. The company's primary revenue stream is expected to come from the successful extraction and sale of these resources. Currently, CGX Energy is in the exploration phase, which involves significant investment in seismic data acquisition, drilling, and evaluation of geological formations. Once the company transitions to the production phase, it will generate revenue from selling crude oil and natural gas to global markets. Additionally, CGX Energy may engage in partnerships or joint ventures with other energy companies to share exploration risks and leverage expertise, which can also contribute to its earnings potential.

CGX Energy Financial Statement Overview

Summary
CGX Energy is currently facing considerable financial difficulties. The company shows minimal revenue with negative EBIT and EBITDA margins, indicating operational inefficiencies. While the company has a strong equity base with zero debt, it struggles with cash flow challenges due to high capital expenditures.
Income Statement
10
Very Negative
CGX Energy has shown minimal revenue generation in the recent period, with a total revenue of 53,145 for the latest year. Gross profit margin is positive since costs are minimal, but EBIT and EBITDA margins are negative, indicating operational inefficiencies. The net profit margin is also negative, reflecting a loss-making position. The revenue growth rate is high due to the absence of prior revenues, but profitability remains a concern.
Balance Sheet
60
Neutral
The company has a strong equity base with zero debt, resulting in a low risk of financial leverage. The equity ratio is solid, indicating a strong capital structure. However, the consistent losses have been eroding equity over time, which might affect the long-term sustainability if not addressed.
Cash Flow
45
Neutral
Cash flow analysis shows significant negative free cash flow due to high capital expenditures, indicating heavy investment or operational costs without equivalent returns. The operating cash flow to net income ratio is unfavorable, suggesting cash flow challenges. However, the company has managed to maintain liquidity through financing activities in previous years.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
53.15K0.000.000.000.00
Gross Profit
53.15K-28.50K0.000.000.00
EBIT
0.00-4.75M-5.78M-5.56M-5.35M
EBITDA
-2.00M-4.73M-6.64M-5.53M-5.42M
Net Income Common Stockholders
-2.58M-3.19M-14.22M-15.78M-6.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.07M6.41M12.39M17.24M11.82M
Total Assets
79.30M84.88M93.01M134.06M39.18M
Total Debt
0.000.000.0018.53M0.00
Net Debt
-2.07M-6.41M-12.39M1.28M-11.82M
Total Liabilities
18.40M21.45M27.67M60.44M14.58M
Stockholders Equity
60.91M63.43M65.34M73.62M24.60M
Cash FlowFree Cash Flow
-4.95M-5.64M-65.18M-72.78M-8.89M
Operating Cash Flow
-4.33M-8.49M-16.08M-4.23M
Investing Cash Flow
-41.82K-3.46M-31.16M-56.70M-4.66M
Financing Cash Flow
0.001.16M34.92M78.87M4.86M

CGX Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.13
Negative
100DMA
0.14
Negative
200DMA
0.16
Negative
Market Momentum
MACD
-0.01
Positive
RSI
34.86
Neutral
STOCH
30.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OYL, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.13, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 34.86 is Neutral, neither overbought nor oversold. The STOCH value of 30.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OYL.

CGX Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSTVE
80
Outperform
$1.90B12.477.57%4.02%-0.17%76.67%
TSNVA
74
Outperform
$2.43B8.1713.72%-15.57%-12.73%
72
Outperform
C$295.86M7.877.74%29.16%-93.72%
TSPRQ
64
Neutral
C$161.02M3.97-0.40%9.45%-25.10%-102.44%
55
Neutral
$7.05B3.40-6.09%6.09%-0.43%-51.04%
TSOYL
38
Underperform
C$25.39M-4.12%18.11%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:OYL
CGX Energy
0.08
-0.29
-78.38%
TSE:TVE
Tamarack Valley Energy
3.72
>-0.01
-0.24%
TSE:NVA
NuVista Energy
12.08
-0.75
-5.85%
TSE:SOIL
Saturn Oil & Gas
1.53
-1.15
-42.91%
TSE:PRQ
Petrus Resources
1.25
0.03
2.46%

CGX Energy Corporate Events

Legal ProceedingsBusiness Operations and Strategy
CGX and Frontera Dispute Termination of Corentyne Block License by Guyana Government
Negative
Mar 13, 2025

CGX Energy and Frontera Energy announced that their joint venture received a notice from the Government of Guyana terminating their Petroleum Agreement and Prospecting License for the Corentyne block offshore Guyana. The joint venture disputes this termination, maintaining that their interests and license remain valid, and they are seeking an amicable resolution with the government. If necessary, they are prepared to assert their legal rights to protect their investments and continue their efforts to generate value from the Corentyne block.

Financial Disclosures
CGX Energy Releases 2024 Financial Statements
Neutral
Mar 10, 2025

CGX Energy Inc. has announced the release of its audited consolidated financial statements for the year ending December 31, 2024. This release provides stakeholders with detailed insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

Legal ProceedingsRegulatory Filings and Compliance
CGX Energy Asserts Validity of Corentyne Block License Amid Government Dispute
Negative
Feb 25, 2025

CGX Energy Inc., in partnership with Frontera Energy Corporation, has responded to the Government of Guyana regarding the status of their Petroleum Prospecting License for the Corentyne block. The joint venture asserts that the license and their agreement with the government remain valid despite the government’s contradictory stance and purported termination. They are exploring legal options to assert their rights and aim to resolve the matter swiftly to continue their investments and efforts in the region.

Legal ProceedingsBusiness Operations and StrategyRegulatory Filings and Compliance
CGX Energy Faces Potential License Termination in Guyana
Negative
Feb 11, 2025

CGX Energy and Frontera Energy, joint venture partners in the Petroleum Prospecting License for the Corentyne block offshore Guyana, have received a letter from the Government of Guyana stating that their license and petroleum agreement have terminated. The government intends to cancel any existing licenses unless representations by the joint venture by February 22, 2025, are favorably considered. The joint venture maintains its position that the license and agreement remain valid and is considering legal options to defend its interests. The outcome of this situation could significantly impact the joint venture’s operations and investments in the Corentyne block.

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.