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Saturn Oil & Gas Inc. (TSE:SOIL)
:SOIL
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Saturn Oil & Gas
(OTC:SOIL)
73Outperform
Positive Factors
Financial Strategy
The company has hedged the FX rate on its US$-denominated debt, effectively fixing its payments in CAD and offsetting the carried amount of the notes on its balance sheet.
Production Performance
Strong well performance expected to drive record production over 41,000 boe/d in Q4, beating previous forecasts and company guidance.
Negative Factors
Debt Levels
The company exited Q4/24 with significant net debt of $860.2M.
Saturn Oil & Gas (SOIL) vs. S&P 500 (SPY)
Market Cap
C$305.72M
Dividend YieldN/A
Average Volume (3M)192.78K
Price to Earnings (P/E)8.1
Beta (1Y)1.20
Revenue Growth29.16%
EPS Growth-93.72%
CountryCA
Employees342
SectorEnergy
Sector Strength61
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.19
Shares Outstanding197,241,000
10 Day Avg. Volume249,505
30 Day Avg. Volume192,776
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.60
Price to Cash Flow (P/CF)2.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.76Price Target Upside142.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Saturn Oil & Gas Business Overview & Revenue Model
Company DescriptionSaturn Oil & Gas Inc. (SOIL) is a Canadian energy company focused on the acquisition, exploration, and development of oil and gas properties. Operating primarily within the Western Canadian Sedimentary Basin, Saturn Oil & Gas is committed to leveraging advanced technologies and a strategic approach to maximize oil production and resource management. The company aims to deliver sustainable growth and shareholder value through its diversified portfolio of oil and gas assets.
How the Company Makes MoneySaturn Oil & Gas generates revenue primarily through the extraction, production, and sale of crude oil and natural gas. The company acquires and develops oil-rich properties, utilizing enhanced recovery techniques to optimize production levels. Revenue streams include the direct sale of produced oil and gas to refineries and distribution companies. Additional revenue can be derived from strategic partnerships or joint ventures that enhance operational efficiencies or expand market access. Key factors contributing to earnings include commodity prices, production volume, and operational costs. The company's financial performance is closely tied to fluctuations in global oil and gas markets, regulatory environments, and technological advancements in extraction and production methodologies.
Saturn Oil & Gas Financial Statement Overview
Summary
Saturn Oil & Gas demonstrates strong growth and improving profitability metrics, especially in revenue and gross profit. While leverage has increased, the company's assets and equity have grown significantly, supporting its financial stability. Cash flow management is effective, though attention is needed on rising capital expenditures and operational expenses.Income Statement
Saturn Oil & Gas shows strong revenue growth over the years, with a significant increase from $7.16M in 2020 to $920.80M in 2024. Gross Profit Margin and Net Profit Margin have improved, indicating enhanced operational efficiency. However, the recent drop in EBIT in 2024 suggests potential challenges in managing operational expenses.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio has increased, reflecting higher leverage which may pose risks if earnings do not keep pace. However, return on equity has generally improved, indicating efficient use of shareholders' funds. The equity ratio has been bolstered by a substantial increase in total assets and stockholders' equity.78
Positive
Cash Flow
Operating cash flow has been robust, with consistent growth. Free cash flow has shown volatility but remains positive in recent years, suggesting good cash management. The free cash flow to net income ratio indicates efficient conversion of earnings to cash flow, although capital expenditures have increased.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 920.79M | 624.83M | 337.19M | 98.42M | 7.16M |
| Gross Profit | ||||
| 577.69M | 270.83M | 247.64M | 56.03M | 5.28M |
| EBIT | ||||
| 0.00 | 254.95M | 96.31M | -59.75M | 1.03M |
| EBITDA | ||||
| 387.42M | 586.73M | 144.85M | -40.28M | 5.39M |
| Net Income Common Stockholders | ||||
| 54.11M | 290.62M | 74.81M | -65.06M | -7.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 48.42M | 26.46M | 18.74M | 8.88M | 613.00K |
| Total Assets | ||||
| 2.16B | 1.34B | 582.91M | 221.11M | 40.31M |
| Total Debt | ||||
| 951.84M | 238.05M | 245.84M | 94.95M | 29.94M |
| Net Debt | ||||
| 903.42M | 211.59M | 235.58M | 92.54M | 29.37M |
| Total Liabilities | ||||
| 1.36B | 726.55M | 444.39M | 251.41M | 36.71M |
| Stockholders Equity | ||||
| 803.97M | 608.66M | 138.52M | -30.31M | 3.61M |
| Cash Flow | Free Cash Flow | |||
| 65.62M | 153.41M | 13.21M | -9.98M | -277.00K |
| Operating Cash Flow | ||||
| 311.94M | 283.99M | 102.31M | -1.28M | 851.00K |
| Investing Cash Flow | ||||
| -749.53M | -576.40M | -318.24M | -87.86M | -1.35M |
| Financing Cash Flow | ||||
| 459.55M | 308.62M | 223.76M | 90.99M | -38.00K |
Saturn Oil & Gas Technical Analysis
Negative
1.55
Price Trends
2.00
Negative
2.09
Negative
2.29
Negative
Market Momentum
>-0.01
Negative
48.57
Neutral
37.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SOIL, the sentiment is Negative. The current price of 1.55 is below the 20-day moving average (MA) of 1.91, below the 50-day MA of 2.00, and below the 200-day MA of 2.29, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 37.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SOIL.
Saturn Oil & Gas Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$4.55B | 5.68 | 14.51% | 9.64% | 3.34% | -6.99% | |
73 Outperform | C$305.72M | 8.13 | 7.74% | ― | 29.16% | -93.72% | |
68 Neutral | $2.17B | 9.51 | 5.99% | 4.06% | 22.71% | ― | |
62 Neutral | $1.59B | ― | -1.59% | 5.85% | -1.72% | 79.87% | |
60 Neutral | C$117.57M | 11.52 | 1.93% | ― | -12.01% | -77.35% | |
58 Neutral | C$473.79M | 5.64 | -12.89% | ― | 11.92% | -304.98% | |
57 Neutral | $7.70B | 4.18 | -3.52% | 8.32% | 0.35% | -64.68% |
* Energy Sector Average
Performance Comparison
TSE:SOIL
Saturn Oil & Gas
1.55
-1.20
-43.64%
TSE:BTE
Baytex Energy
2.32
-2.84
-55.06%
TSE:OBE
Obsidian Energy
6.43
-4.93
-43.40%
TSE:BNE
Bonterra Energy
3.15
-3.66
-53.74%
TSE:WCP
Whitecap Resources
7.75
-1.99
-20.46%
TSE:VET
Vermilion Energy
8.69
-7.71
-47.01%
Saturn Oil & Gas Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -16.67% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
Saturn showcased strong operational and financial performance, with record-breaking production and cost efficiencies. Successful acquisitions and innovative drilling techniques were notable achievements. However, foreign exchange impacts on debt posed challenges, although partially mitigated by hedging strategies.Highlights
Record Production and Exceeding Expectations
Saturn's production averaged just over 41,000 barrels a day in Q4, exceeding the high end of their guidance range and beating analyst expectations by 4%. December volumes averaged approximately 42,000 BOE a day.
Strong Financial Performance
Saturn reported a record Q4 adjusted funds flow totaling $124 million or $0.64 a share, beating the Street consensus estimates by 12%. For the full year 2024, AFF was $2.10 or $380 million.
Operational Cost Reductions
Net operating expense was reduced to $19 for the year and just over $18 in the quarter, under the $20 target. Operating netback was just over $43 a BOE in both periods.
Successful Strategic Acquisitions
Significant acquisitions in South Saskatchewan enhanced Saturn's asset portfolio, expanding future development potential and providing waterflood development to reduce declines.
Innovative Drilling Achievements
Saturn drilled the first ever Torquay mono-bore horizontal well and broke records with Canada's longest Cardium well at 7,570 meters measured depth.
Lowlights
Foreign Exchange Impact on Debt
The erosion in the Canadian dollar significantly affected the Canadian dollar value of Saturn's U.S. debt, making the net debt appear larger in Canadian dollars.
Currency Fluctuation Concerns
The impact of currency fluctuations on net debt was significant, although partially offset by foreign exchange hedges.
Company Guidance
In Saturn's Q4 and full-year 2024 earnings call, the company highlighted several key metrics and developments that underscored a year of significant progress and operational success. Saturn achieved a record Q4 adjusted funds flow of $124 million, or $0.64 per share, surpassing analyst expectations by 12%. The company's production averaged over 41,000 barrels per day in Q4, exceeding the high end of its guidance range and closing the year at approximately 42,000 BOE per day. Saturn executed a $105 million capital program in Q4 and $246 million for the full year, drilling a total of 97 wells across its core areas. The company also reported notable financial achievements, including net operating expenses reduced to just over $18 per BOE in Q4, well under the $20 target, and an operating netback of over $43 per BOE. Additionally, Saturn made strides in debt management by refinancing its legacy debt with $650 million of senior notes, leading to a year-end balance of $618 million after debt prepayments. The company's hedge strategy and foreign exchange hedges helped mitigate the impact of currency fluctuations, maintaining financial resilience. Saturn's robust performance and strategic initiatives led to a significant increase in free funds flow, amounting to $134 million or $0.74 per share in 2024, and the company repurchased approximately 6.7 million shares, reflecting a commitment to shareholder returns.Saturn Oil & Gas Corporate Events
Business Operations and Strategy
Saturn Oil & Gas to Participate in Virtual Investor Conference
Neutral
Mar 26, 2025
Saturn Oil & Gas Inc. announced its participation in a virtual investor conference hosted by VirtualInvestorConferences.com on March 27, 2025. The event will feature a presentation by Saturn’s leadership and a live Q&A session, providing an opportunity for investors, analysts, and advisors to engage with the company. This participation is part of Saturn’s ongoing efforts to enhance investor engagement and communicate its strategic initiatives and operational progress.
Business Operations and StrategyFinancial Disclosures
Saturn Oil & Gas Achieves Record Production and Financial Success in 2024
Positive
Mar 13, 2025
Saturn Oil & Gas Inc. reported record production and financial results for Q4 and the year ending 2024, with production volumes exceeding expectations and significant increases in adjusted funds flow and EBITDA. The company successfully integrated new assets, expanded drilling operations, and reduced operating costs, positioning itself well to navigate economic challenges while focusing on long-term value generation for shareholders.
Financial Disclosures
Saturn Oil & Gas to Announce 2024 Financial Results and Host Conference Call
Neutral
Feb 25, 2025
Saturn Oil & Gas Inc. has announced the release date for its Q4 and full year 2024 financial results, which will be disclosed on March 13, 2025. The company will also provide an independent reserves evaluation. A conference call and webcast are scheduled for March 14, 2025, to discuss the results and reserves, offering stakeholders an opportunity to engage with the leadership team. This announcement is significant for investors and analysts as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder confidence.
Business Operations and StrategyFinancial Disclosures
Saturn Oil & Gas Sets New Production Record, Exceeds Q4 2024 Guidance
Positive
Feb 19, 2025
Saturn Oil & Gas Inc. reported a new corporate production record with estimated Q4 2024 volumes exceeding 41,000 boe/d, surpassing their guidance due to successful capital programs and production optimization. The company’s strategic drilling in the Flat Lake and Battrum fields and the advancement of its OHML development positions Saturn for improved returns and sustained growth, with plans to continue leveraging its technical expertise and operational momentum into 2025.
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.