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Saturn Oil & Gas (TSE:SOIL)
TSX:SOIL

Saturn Oil & Gas (SOIL) AI Stock Analysis

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Saturn Oil & Gas

(TSX:SOIL)

77Outperform
Saturn Oil & Gas exhibits strong financial performance with robust revenue growth and profitability, supporting a stable outlook despite increased leverage. The stock shows potential undervaluation, making it appealing for long-term investors. However, technical analysis reveals weak market momentum, and foreign exchange impacts on debt present risks. Recent corporate events reinforce confidence in strategic execution and financial resilience.
Positive Factors
Production Performance
Strong well performance expected to drive record production over 41,000 boe/d, beating previous forecasts and company guidance.
Valuation
The company's considerable discount to NAV presents compelling value.
Negative Factors
Debt
The company exited with significant net debt of $860.2M.

Saturn Oil & Gas (SOIL) vs. S&P 500 (SPY)

Saturn Oil & Gas Business Overview & Revenue Model

Company DescriptionSaturn Oil & Gas Inc. (SOIL) is a Canadian-based energy company primarily engaged in the exploration, development, and production of oil and natural gas reserves. The company operates within the energy sector, focusing on leveraging advanced technologies to optimize its resource extraction processes. Saturn Oil & Gas is committed to sustainable practices and aims to maximize shareholder value through strategic acquisitions and efficient resource management.
How the Company Makes MoneySaturn Oil & Gas generates revenue primarily through the sale of crude oil and natural gas. The company's earnings are driven by its ability to efficiently extract and sell these resources at competitive market prices. Key revenue streams include the production and sale of oil and gas from its various properties and fields. The company may also engage in strategic partnerships or joint ventures to enhance its production capabilities and expand its market reach. Additionally, fluctuations in global oil and gas prices, along with operational efficiencies, significantly influence Saturn Oil & Gas's revenue generation.

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
85
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
80
Positive
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
920.79M624.83M337.19M98.42M7.16M
Gross Profit
577.69M270.83M247.64M56.03M5.28M
EBIT
0.00254.95M96.31M-59.75M1.03M
EBITDA
387.42M586.73M144.85M-40.28M5.39M
Net Income Common Stockholders
54.11M290.62M74.81M-65.06M-7.76M
Balance SheetCash, Cash Equivalents and Short-Term Investments
48.42M26.46M18.74M8.88M613.00K
Total Assets
2.16B1.34B582.91M221.11M40.31M
Total Debt
951.84M238.05M245.84M94.95M29.94M
Net Debt
903.42M211.59M235.58M92.54M29.37M
Total Liabilities
1.36B726.55M444.39M251.41M36.71M
Stockholders Equity
803.97M608.66M138.52M-30.31M3.61M
Cash FlowFree Cash Flow
65.62M153.41M13.21M-9.98M-277.00K
Operating Cash Flow
311.94M283.99M102.31M-1.28M851.00K
Investing Cash Flow
-749.53M-576.40M-318.24M-87.86M-1.35M
Financing Cash Flow
459.55M308.62M223.76M90.99M-38.00K

Saturn Oil & Gas Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.69
Price Trends
50DMA
1.72
Negative
100DMA
1.93
Negative
200DMA
2.16
Negative
Market Momentum
MACD
-0.03
Negative
RSI
55.87
Neutral
STOCH
66.48
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 1.69 is above the 20-day moving average (MA) of 1.53, below the 50-day MA of 1.72, and below the 200-day MA of 2.16, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 66.48 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$309.67M8.2422.02%37.66%782.26%
TSWCP
77
Outperform
$4.50B4.8916.40%9.15%5.56%35.85%
TSVET
66
Neutral
$1.33B-1.19%5.56%1.04%94.48%
TSBTE
65
Neutral
$1.62B5.298.02%4.03%10.55%
TSBNE
65
Neutral
$119.81M11.741.93%-12.01%-77.35%
56
Neutral
$7.06B3.68-4.87%5.83%0.28%-51.94%
TSOBE
50
Neutral
$411.16M5.64-12.88%11.92%-304.98%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SOIL
Saturn Oil & Gas
1.69
-0.89
-34.50%
TSE:BTE
Baytex Energy
2.29
-2.33
-50.39%
TSE:OBE
Obsidian Energy
6.37
-4.66
-42.25%
TSE:BNE
Bonterra Energy
3.21
-2.46
-43.39%
TSE:WCP
Whitecap Resources
8.04
-1.46
-15.39%
TSE:VET
Vermilion Energy
8.94
-6.64
-42.62%

Saturn Oil & Gas Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q4-2024)
|
% Change Since: 8.33%|
Next Earnings Date:Aug 13, 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.
Q4-2024 Updates
Positive Updates
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.
Negative Updates
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 StrategyFinancial Disclosures
Saturn Oil & Gas Achieves Record Production and Financial Growth in Q1 2025
Positive
May 7, 2025

Saturn Oil & Gas Inc. reported record production and adjusted funds flow for the first quarter of 2025, with production reaching 41,680 boe/d and adjusted funds flow totaling $131.1 million. The company successfully reduced its net debt by $46.3 million and repurchased US$15 million of Senior Notes below par, enhancing its financial flexibility. Saturn’s strategic asset development and operational efficiencies have led to strong financial performance, positioning the company to continue executing its strategy amidst market volatility.

Spark’s Take on TSE:SOIL Stock

According to Spark, TipRanks’ AI Analyst, TSE:SOIL is a Outperform.

Saturn Oil & Gas benefits from robust financial growth and effective management strategies, particularly regarding revenue and profitability improvements, which are significant strengths. However, technical indicators suggest weak market momentum, which could impact short-term stock performance. The company’s valuation appears attractive, with potential undervaluation, making it appealing for long-term investors. The positive earnings call adds confidence, despite foreign exchange challenges related to debt.

To see Spark’s full report on TSE:SOIL stock, click here.

Financial Disclosures
Saturn Oil & Gas Sets Date for Q1 2025 Financial Results Release
Neutral
Apr 23, 2025

Saturn Oil & Gas Inc. has announced the release date for its Q1 2025 financial results, scheduled for May 7, 2025, after market close. The company will host a conference call and webcast on May 8, 2025, to discuss the results and engage with investors, analysts, and media. This announcement reflects Saturn’s ongoing transparency and engagement with stakeholders, potentially impacting investor confidence and market positioning.

Spark’s Take on TSE:SOIL Stock

According to Spark, TipRanks’ AI Analyst, TSE:SOIL is a Outperform.

Saturn Oil & Gas benefits from robust financial growth and effective management strategies, particularly regarding revenue and profitability improvements, which are significant strengths. However, technical indicators suggest weak market momentum, which could impact short-term stock performance. The company’s valuation appears attractive, with potential undervaluation, making it appealing for long-term investors. The positive earnings call adds confidence, despite foreign exchange challenges related to debt.

To see Spark’s full report on TSE:SOIL stock, click here.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Saturn Oil & Gas Exceeds Q1/25 Targets and Strengthens Financial Position
Positive
Apr 23, 2025

Saturn Oil & Gas Inc. announced a successful Q1/25 capital program, with well performance exceeding expectations by 20%, resulting in production volumes surpassing guidance estimates. The company has also accelerated debt repayment by repurchasing US$15 million in senior notes and continued its share buyback program, enhancing financial resilience and long-term value creation for stakeholders.

Spark’s Take on TSE:SOIL Stock

According to Spark, TipRanks’ AI Analyst, TSE:SOIL is a Outperform.

Saturn Oil & Gas is performing strongly, with significant revenue growth and operational efficiencies driving financial success. Despite increased leverage, the company’s strategic acquisitions and record production support a positive outlook. The technical analysis suggests current weak momentum, but valuation metrics indicate potential undervaluation, making it an attractive option for growth-oriented investors.

To see Spark’s full report on TSE:SOIL stock, click here.

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.