CGX Energy (OYL) AI Stock Analysis

• Market Cap: C$42.32M
• Dividend Yield: N/A
• Average Volume (3M): 38.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: N/A
• EPS Growth: 18.11%
• Country: CA
• Employees: 767
• Sector: Energy
• Sector Strength: 87
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.01
• Shares Outstanding: 338,549,000
• 10 Day Avg. Volume: 36,412
• 30 Day Avg. Volume: 38,204
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 617.90
• Price to Cash Flow (P/CF): -28.20
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

CGX Energy's overall score reflects significant financial and operational challenges, compounded by a critical legal dispute affecting a key asset. The combination of negative profitability, poor cash flow, and legal risks creates a precarious situation, overshadowing technical and valuation considerations.

CGX Energy Business Overview & Revenue Model

Company Description

CGX Energy Inc. (OYL) is a Canadian-based oil and gas exploration company focused on the exploration and development of oil and gas resources in the Guyana-Suriname Basin. The company is involved in the exploration of offshore petroleum prospects and aims to develop its assets to contribute to the growing energy needs. CGX Energy operates in the energy sector, specifically focusing on oil and gas exploration and development.

How the Company Makes Money

CGX Energy makes money primarily through the exploration and potential development of oil and gas reserves. The company's revenue model is based on discovering commercially viable quantities of oil and gas, which can then be developed and sold to generate income. Key revenue streams include the sale of crude oil and natural gas once production commences. Significant partnerships, such as joint ventures with other exploration companies, play a crucial role in sharing exploration costs and risks, thus contributing to the company's potential earnings. However, as an exploration company, CGX Energy may not have consistent revenue streams until successful commercial discoveries and production are achieved.

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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.15K	0.00	0.00	0.00	0.00
	Gross Profit
53.15K	-28.50K	0.00	0.00	0.00
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
2.07M	6.41M	12.39M	17.24M	11.82M
	Total Assets
79.30M	84.88M	93.01M	134.06M	39.18M
	Total Debt
0.00	0.00	0.00	18.53M	0.00
	Net Debt
-2.07M	-6.41M	-12.39M	1.28M	-11.82M
	Total Liabilities
18.40M	21.45M	27.67M	60.44M	14.58M
	Stockholders Equity
60.91M	63.43M	65.34M	73.62M	24.60M
Cash Flow		Free 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
0.00	1.16M	34.92M	78.87M	4.86M

CGX Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OYL.

CGX Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVA	75 Outperform	$2.73B	9.09	13.72%	―	-15.57%	-12.73%
TVE	74 Outperform	$2.24B	14.52	7.57%	3.63%	-0.17%	76.67%
SOIL	73 Outperform	$390.54M	10.39	7.74%	―	29.16%	-93.72%
PRQ	64 Neutral	C$167.36M	3.97	-0.40%	9.09%	-25.10%	-102.44%
Sector *	58 Neutral	$9.14B	5.36	-7.06%	7.50%	0.46%	-64.27%
OYL	38 Underperform	C$42.32M	―	-4.12%	―	―	18.11%

CGX Energy Corporate Events

CGX and Frontera Dispute Termination of Corentyne Block License by Guyana Government

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.

CGX Energy Releases 2024 Financial Statements

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.

CGX Energy Asserts Validity of Corentyne Block License Amid Government Dispute

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.

CGX Energy Faces Potential License Termination in Guyana

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.