CGX Energy (OYL) AI Stock Analysis

• Market Cap: C$27.08M
• Dividend Yield: N/A
• Average Volume (3M): 30.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: N/A
• EPS Growth: 18.11%
• Country: CA
• Employees: 767
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 338,549,000
• 10 Day Avg. Volume: 19,196
• 30 Day Avg. Volume: 30,670
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: -0.44
• Enterprise Value/Revenue: -49.46
• Enterprise Value/Gross Profit: -63.38
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

CGX Energy faces substantial challenges, primarily from financial inefficiencies and legal disputes regarding its key asset in Guyana. The negative sentiment from these corporate events, combined with poor technical and valuation scores, results in a low overall stock score. The company needs to address these issues to improve its outlook.

CGX Energy Business Overview & Revenue Model

Company Description

CGX Energy Inc., an oil and gas exploration company, explores for and evaluates petroleum and natural gas properties in Guyana, South America. It holds interests in three petroleum prospecting licenses and related petroleum agreements, including Corentyne, Berbice, and Demerara blocks that cover an area of approximately 11,005.2 square kilometers located in offshore and onshore Guyana. The company also constructs and develops the Berbice Deep Water Port project in Guyana. CGX Energy Inc. was incorporated in 1998 and is headquartered in Toronto, Canada.

How the Company Makes Money

CGX 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 facing significant financial challenges. Despite having no debt, the company's inability to generate profits, coupled with cash flow inefficiencies, poses major risks. The need for better revenue generation and cost management is critical.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
188.80K	53.15K	0.00	0.00	0.00	0.00
	Gross Profit
188.80K	53.15K	-28.50K	-38.80K	-23.18K	―
	EBIT
-2.15M	-2.22M	-4.75M	-5.78M	-5.56M	-5.35M
	EBITDA
-1.80M	-2.00M	-4.73M	-5.55M	-10.66M	-5.42M
	Net Income Common Stockholders
-2.53M	-2.58M	-3.19M	-10.02M	-12.69M	-5.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35M	2.07M	6.41M	12.39M	17.24M	11.82M
	Total Assets
78.73M	79.30M	84.88M	93.01M	134.06M	39.18M
	Total Debt
0.00	0.00	0.00	0.00	18.53M	0.00
	Net Debt
-1.35M	-2.07M	-6.41M	-12.39M	1.28M	-11.82M
	Total Liabilities
18.42M	18.40M	21.45M	27.67M	60.44M	14.58M
	Stockholders Equity
60.32M	60.91M	63.43M	65.34M	73.62M	24.60M
Cash Flow		Free Cash Flow
-3.84M	-4.95M	-5.64M	-65.18M	-72.78M	-8.89M
	Operating Cash Flow
-3.35M	-4.33M	―	-8.49M	-16.08M	-4.23M
	Investing Cash Flow
766.71K	-41.82K	-3.46M	-31.16M	-56.70M	-4.66M
	Financing Cash Flow
0.00	0.00	1.16M	34.92M	78.87M	4.86M

CGX Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 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:OYL, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
Sector *	58 Neutral	$7.37B	3.39	-4.49%	10.01%	0.82%	-49.15%
ROK	55 Neutral	C$42.86M	12.26	3.50%	―	-2.25%	94.72%
DME	42 Neutral	C$18.84M	―	-8.45%	―	-81.44%	59.09%
SNV	41 Neutral	C$14.64M	―	-101.34%	―	―	-131.33%
OYL	39 Underperform	C$27.08M	―	-4.08%	―	―	18.11%
TAO	39 Underperform	C$27.18M	―	-16.72%	―	―	―
SOUTF		$14.76M	―	-73.38%	―	―	―

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.