Saturn Oil & Gas (SOIL) AI Stock Analysis

• Market Cap: C$459.53M
• Dividend Yield: N/A
• Average Volume (3M): 348.06K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 1.23
• Revenue Growth: 24.36%
• EPS Growth: -55.40%
• Country: CA
• Employees: 342
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.02
• Shares Outstanding: 188,332,000
• 10 Day Avg. Volume: 302,543
• 30 Day Avg. Volume: 348,064
• PEG Ratio: -0.08
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 5.95
• 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$5.50
• Price Target Upside: 89.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.68
• Revenue Forecast (FY): C$1.03B

• Rating: 80 Outperform
• Price Target: C$2.50 ▼(-14.09% Downside)

Saturn Oil & Gas receives a strong score due to its robust financial performance, strategic growth initiatives, and attractive valuation. The company's ability to exceed production targets and manage costs effectively, despite a challenging price environment, positions it well for future growth. High leverage remains a concern but is mitigated by strong operational performance and strategic acquisitions.

Positive Factors

Strong revenue and margins

Sustained, high-margin revenue growth shows the business converts production into profitable sales. Durable margins and large year-over-year revenue expansion support reinvestment, debt servicing and operational resilience across commodity cycles over the coming months.

Production scale and low operating costs

Outperforming production targets and sub-$20/BOE operating costs indicate operational scale and efficiency. These structural advantages boost cash generation per barrel and improve margin durability, enhancing the firm's ability to fund growth and withstand price variability.

Accretive tuck‑in acquisitions

Targeted, cost-effective M&A increased production materially without large organic capex. This strategic approach can rapidly expand reserves and cash generation per share, accelerating scale and preserving capital flexibility when executed at attractive costs.

Negative Factors

High leverage and net debt level

Elevated leverage and nearly $800M net debt constrain financial flexibility, increase interest and refinancing risk, and worsen sensitivity to commodity or FX shocks. High debt levels limit capacity for organic investment or aggressive buybacks in weaker price periods.

Low free cash flow conversion

Weak conversion of accounting profits into free cash restricts the company's ability to deleverage, invest, or return capital. Low FCF relative to net income is a structural constraint on balance sheet repair and sustained shareholder distributions absent improved cash yields.

Reduced development capex, reliance on M&A

An 18% capex cut and pivot toward acquisitions may curb organic reserve replacement and long‑term production growth if suitable deals dry up. Reliance on M&A shifts execution and integration risk onto management and can drive higher leverage or dilution over time.

Saturn Oil & Gas Business Overview & Revenue Model

Company Description

Saturn Oil & Gas Inc. is a Canadian oil and gas exploration and production company focused on the acquisition, development, and production of conventional oil and gas assets. The company operates primarily in the Western Canadian Sedimentary Basin, where it leverages its geological expertise to identify and exploit hydrocarbon resources. Saturn Oil & Gas aims to enhance shareholder value through strategic capital investment and operational efficiencies in its core areas.

How the Company Makes Money

Saturn Oil & Gas generates revenue primarily through the exploration, production, and sale of crude oil and natural gas. The company's revenue model is built around its ability to extract hydrocarbons from its leased properties and sell these products to various markets, including refineries and distributors. Key revenue streams include direct sales of oil and gas, often influenced by market prices for these commodities. Additionally, Saturn may engage in joint ventures or partnerships, allowing it to share costs and risks associated with exploration and production while capitalizing on shared resources. The company’s earnings can also be affected by operational efficiencies, investment in technology to enhance extraction processes, and fluctuations in global oil and gas prices.

Saturn Oil & Gas Financial Statement Overview

Summary

Saturn Oil & Gas shows strong revenue growth and profitability metrics, with robust gross and net profit margins. However, high leverage and potential cost management issues pose risks. The company's cash flow position is improving, but further enhancement in free cash flow relative to net income is needed.

Income Statement

Saturn Oil & Gas has demonstrated strong revenue growth with a 5.61% increase in TTM, supported by robust gross and net profit margins of 74.76% and 20.16% respectively. The EBIT and EBITDA margins are also healthy at 27.75% and 42.14%, indicating efficient operations. However, the decline in gross profit from the previous year suggests potential cost management issues.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 1.78, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 138.28%, reflecting effective use of equity to generate profits. The equity ratio of 44.20% suggests a balanced asset structure.

Cash Flow

Saturn Oil & Gas shows a substantial 37.9% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 2.14 suggests strong cash conversion, although the free cash flow to net income ratio of 0.13 indicates limited free cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	920.79M	624.83M	337.19M	98.42M	7.16M
Gross Profit	614.54M	577.69M	270.83M	247.64M	56.03M	5.28M
EBITDA	546.61M	405.17M	567.87M	143.92M	-40.84M	5.39M
Net Income	110.02M	54.11M	290.62M	74.81M	-65.06M	-7.76M
Balance Sheet
Total Assets	2.21B	2.16B	1.34B	582.91M	221.11M	40.31M
Cash, Cash Equivalents and Short-Term Investments	34.06M	48.42M	26.46M	18.74M	8.88M	613.00K
Total Debt	828.21M	951.84M	458.01M	247.19M	95.89M	30.11M
Total Liabilities	1.29B	1.36B	726.55M	444.39M	251.41M	36.71M
Stockholders Equity	924.51M	803.97M	608.66M	138.52M	-30.31M	3.61M
Cash Flow
Free Cash Flow	190.59M	65.62M	153.41M	13.21M	-9.98M	-277.00K
Operating Cash Flow	472.49M	311.94M	283.99M	102.31M	-1.28M	851.00K
Investing Cash Flow	-384.01M	-749.53M	-576.40M	-318.24M	-87.86M	-1.35M
Financing Cash Flow	-167.39M	459.55M	308.62M	223.76M	90.99M	-38.00K

Saturn Oil & Gas Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SOIL, the sentiment is Neutral. The current price of 2.91 is above the 20-day moving average (MA) of 2.43, above the 50-day MA of 2.53, and above the 200-day MA of 2.27, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 48.20 is Neutral, neither overbought nor oversold. The STOCH value of 51.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SOIL.

Saturn Oil & Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOIL	80 Outperform	C$459.53M	4.33	12.26%	―	24.36%	-55.40%
SGY	69 Neutral	C$652.82M	14.66	5.87%	7.59%	-7.36%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TAL	64 Neutral	C$351.50M	3.41	14.69%	21.85%	-2.90%	-31.97%
FEC	53 Neutral	C$425.03M	-0.80	-28.23%	4.07%	-2.65%	-591.26%
IPO	51 Neutral	C$340.74M	-36.71	-2.61%	12.70%	53.79%	-126.63%
OBE	48 Neutral	C$565.12M	-2.67	-14.96%	―	-11.85%	-307.86%

Saturn Oil & Gas Corporate Events

Saturn Oil & Gas Streamlines Structure With Vertical Amalgamation

Saturn Oil & Gas Inc. has completed a vertical short-form amalgamation with its wholly owned subsidiaries 1777241 Alberta Ltd. and Clearview Resources Ltd., effective January 1, 2026, consolidating its asset base and development activities under a single corporate entity. The move is intended to streamline the company’s structure, reduce corporate and operational expenses, and simplify administration without affecting existing shareholders or their share certificates, reinforcing Saturn’s focus on operational efficiency as it develops its light oil portfolio in Western Canada.

The most recent analyst rating on (TSE:SOIL) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on Saturn Oil & Gas stock, see the TSE:SOIL Stock Forecast page.

Saturn Oil & Gas Unveils 2026 Capital Budget and Strategic Guidance

Saturn Oil & Gas Inc. announced its 2026 capital budget of $180-$190 million, targeting average production of 39,000-41,000 barrels of oil equivalent per day (boe/d), with 81% weighted to oil and liquids. The company plans to allocate funds to high-yield drilling projects, prioritize debt repayment, and focus on share buybacks or strategic tuck-in acquisitions if opportunities arise. This strategy aligns with Saturn’s goal to optimize free funds flow while maintaining operational efficiency in light of current commodity prices. The capital program is designed with flexibility to adjust spending and production based on market conditions, emphasizing long-term value preservation and operational synergies.

The most recent analyst rating on (TSE:SOIL) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Saturn Oil & Gas stock, see the TSE:SOIL Stock Forecast page.

Saturn Oil & Gas Exceeds Q3 2025 Production Guidance, Strengthens Strategic Position

Saturn Oil & Gas Inc. reported strong third-quarter 2025 results, with production surpassing guidance and analyst expectations. The company executed an $87 million capital program, focusing on acquisitions with better economic returns than drilling, and achieved a 10% production increase from the previous quarter. This performance, alongside strategic acquisitions and efficient cost management, supports Saturn’s long-term sustainability and enhances shareholder value through debt repayment and share buybacks.

The most recent analyst rating on (TSE:SOIL) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Saturn Oil & Gas stock, see the TSE:SOIL Stock Forecast page.

Saturn Oil & Gas to Release Q3 2025 Results and Host Conference Call

Saturn Oil & Gas Inc. has announced the release date for its Q3 2025 financial results, scheduled for November 5, 2025, after market close. The company will host a conference call and webcast on November 6, 2025, to discuss the results, providing stakeholders with insights into its financial performance and strategic direction. This announcement highlights Saturn’s ongoing commitment to transparency and engagement with investors, analysts, and media, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (TSE:SOIL) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Saturn Oil & Gas stock, see the TSE:SOIL Stock Forecast page.