Saturn Oil & Gas (SOIL) AI Stock Analysis

• Market Cap: C$595.13M
• Dividend Yield: N/A
• Average Volume (3M): 348.06K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.99
• 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: 109.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: C$3.50 ▲(33.08% Upside)

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

High production and cost efficiency

Sustained production scale above 41k BOE/day with sub-$20/BOE operating cost materially strengthens cash generation and unit economics. Higher output with low per-BOE costs supports durable free cash flow, funds capex or debt reduction, and improves resilience across commodity cycles.

Robust margins and revenue growth

Very strong gross and net margins combined with nearly 89% TTM revenue growth indicate durable operational discipline and pricing or cost advantages. High margins create structural capacity to reinvest, service obligations, and absorb commodity swings while maintaining profitability.

Disciplined tuck-in M&A and capital allocation

Targeted, accretive tuck-in deals and a deliberate cut to large-scale capex show a strategic shift toward capital-efficient growth. This approach can sustainably boost production per dollar invested, improve return on invested capital, and limit execution risk from large drilling programs.

Negative Factors

High leverage and net debt load

Elevated leverage and substantial net debt reduce financial flexibility and increase exposure to interest and commodity price shocks. Persistent high debt can constrain strategic options, raise refinancing needs, and limit the firm's ability to accelerate growth or opportunistic investments.

Weak free cash flow conversion

Low FCF conversion versus reported earnings indicates limited cash retained after operations and reinvestment. Structurally weak cash conversion hampers debt paydown, reduces capacity for sustained buybacks or dividends, and forces reliance on external financing for growth.

Slight decline in EBIT margin

A falling EBIT margin signals rising operating costs or efficiency headwinds that, if persistent, will erode operating leverage. Over time this can reduce reinvestment capacity and returns on projects, making the business more sensitive to commodity price downturns.

Saturn Oil & Gas Business Overview & Revenue Model

Company Description

Saturn Oil & Gas Inc. engages in the acquisition, exploration, and development of petroleum and natural gas resource deposits in Canada. It is involved in the exploration and development of light oil assets in the Oxbow area of Southeast Saskatchewan; Viking light oil assets in West-Central Saskatchewan; Cardium light oil assets in Central Alberta; Montney and Swan Hills light oil in North Alberta. Saturn Oil & Gas Inc. was incorporated in 2001 and is headquartered in Calgary, Canada.

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 with a robust gross profit margin and net profit margin. However, high leverage and a slightly decreased EBIT margin indicate potential financial risks.

Income Statement

Saturn Oil & Gas has demonstrated strong revenue growth with a TTM revenue increase of 88.8%. The company maintains a robust gross profit margin of 74.76% and a net profit margin of 20.16%, indicating efficient cost management and profitability. However, the EBIT margin has slightly decreased from the previous year, suggesting potential operational cost pressures.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.78, which may pose financial risk. However, the company has a strong return on equity of 138.28%, reflecting effective use of equity to generate profits. The equity ratio stands at 41.74%, indicating a moderate level of financial stability.

Cash Flow

Saturn Oil & Gas has shown a positive free cash flow growth rate of 13.81% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.46, suggesting that operating cash flows are sufficient to cover net income. However, the free cash flow to net income ratio is relatively low at 0.13, indicating limited free cash flow relative to net income.

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: Positive
• Last Price: 2.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SOIL, the sentiment is Positive. The current price of 2.63 is below the 20-day moving average (MA) of 2.77, below the 50-day MA of 2.64, and above the 200-day MA of 2.36, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 87.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$595.13M	5.60	12.26%	―	24.36%	-55.40%
SGY	69 Neutral	$729.71M	16.39	5.87%	7.59%	-7.36%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TAL	63 Neutral	C$346.93M	3.37	14.69%	21.85%	-2.90%	-31.97%
FEC	53 Neutral	C$654.97M	-1.23	-28.23%	4.07%	-2.65%	-591.26%
IPO	51 Neutral	C$408.17M	-43.76	-2.61%	12.70%	53.79%	-126.63%
OBE	48 Neutral	C$660.42M	-3.12	-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.