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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)

Rating:77Outperform
Price Target:
C$2.50
▲(20.19%Upside)
Saturn Oil & Gas scores well overall due to its strong financial performance and positive earnings call, underscoring robust revenue growth and operational efficiency. Attractive valuation adds to the appeal, though technical indicators highlight caution due to overbought signals. The company's high net debt and oil price volatility remain significant risks.
Positive Factors
Financial Performance
Q4/24 results beat expectations on lower operating expenses.
Production Performance
Strong well performance expected to drive record production over 41,000 boe/d in Q4, beating previous forecasts and company guidance.
Stock Valuation
The company's considerable discount to NAV presents compelling value.
Negative Factors
Debt Levels
The company exited Q4/24 with significant net debt of $860.2M.

Saturn Oil & Gas (SOIL) vs. iShares MSCI Canada ETF (EWC)

Saturn Oil & Gas Business Overview & Revenue Model

Company DescriptionSaturn 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 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 Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 33.33%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial and operational performance with record production and cost savings. However, challenges such as high net debt and uncertain oil prices pose potential risks for future growth.
Q1-2025 Updates
Positive Updates
Record Quarterly Production
Saturn achieved a record quarterly production of nearly 41,700 barrels per day, up from just over 41,000 barrels per day in Q4 of 2024.
Strong Financial Performance
Saturn generated record adjusted fund flow of $131 million and adjusted EBITDA of $158 million, exceeding analyst expectations.
Operational Efficiency and Cost Savings
Operational efficiencies led to reduced operating costs by 13%, driving a cost savings of $7.5 million in the second half of 2024, with a projected $15 million cost savings for 2025.
Successful Drilling and Development Programs
Completion of 33 gross wells and a successful execution of the Q1 capital program with zero lost time injuries despite a 69% increase in person hours worked.
Negative Updates
Uncertain Oil Price Environment
Saturn is facing uncertainty in the oil price environment, which may impact future capital allocation and decisions regarding production initiatives.
High Net Debt
Saturn reported net debt of C$814 million, with a net debt to annualized adjusted EBITDA ratio of 1.3 times, indicating a significant financial obligation.
Company Guidance
In the first quarter of 2025, Saturn achieved notable financial and operational milestones, surpassing analyst expectations. The company reported a record quarterly production of nearly 42,000 BOE per day, an adjusted funds flow of $131 million, and an adjusted EBITDA of $158 million. Furthermore, the free cash flow reached $58 million, marking the highest for any first quarter in Saturn's history. The company achieved significant operational cost savings, particularly from its Flat Lake and Battrum assets, reducing operating costs by 13%, which translated to an almost $15 million cost savings for 2025. In terms of capital expenditure, Saturn invested $73 million, primarily in drilling activities, resulting in the completion of 33 wells. The company's net debt stood at C$814 million, with a net debt to annualized adjusted EBITDA ratio of 1.3 times. Saturn also demonstrated financial prudence by repurchasing US$15 million of senior notes below par value and maintaining a strong hedge book, which provides a buffer against oil price volatility. Looking forward, Saturn outlined flexible capital expenditure plans based on commodity prices, with potential adjustments ranging from $100 million to $310 million depending on oil price scenarios.

Saturn Oil & Gas Financial Statement Overview

Summary
Saturn Oil & Gas demonstrates robust financial health with significant revenue growth and improved profitability. The company has a strong gross profit margin and effective cost management, though attention is needed to manage capital expenditure and debt levels.
Income Statement
85
Very Positive
Saturn Oil & Gas shows robust revenue growth with a significant increase from $337M in 2022 to $971M in TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains strong at approximately 57.1% in TTM 2025, indicating efficient cost management. Net profit margin improved significantly to 15.96% in TTM 2025, reflecting increasing profitability. The EBIT margin also improved to 30.69%. Overall, the company demonstrates strong growth and improving profitability, though historical volatility in net income is noted.
Balance Sheet
70
Positive
The debt-to-equity ratio stands at 1.11 in TTM 2025, indicating a balanced capital structure that leverages debt effectively. Return on equity (ROE) improved to 18.48%, showing effective utilization of equity in generating profits. However, the equity ratio is moderate at 38.29%, suggesting a fair level of financial stability but potential risks if the debt levels increase further.
Cash Flow
78
Positive
Free cash flow grew impressively by 85% from 2024 to TTM 2025, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 2.63 demonstrates efficient cash conversion from earnings. The free cash flow to net income ratio is 0.78, reflecting a healthy ability to convert earnings into free cash. The company shows strong cash flow management, though capital expenditure remains substantial.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
970.72M920.79M624.83M337.19M98.42M7.16M
Gross Profit
554.08M577.69M270.83M247.64M56.03M5.28M
EBIT
297.93M272.26M254.95M96.31M-59.75M1.03M
EBITDA
567.37M405.17M586.73M144.85M-40.28M5.39M
Net Income Common Stockholders
154.91M54.11M290.62M74.81M-65.06M-7.76M
Balance SheetCash, Cash Equivalents and Short-Term Investments
79.48M48.42M26.46M18.74M8.88M613.00K
Total Assets
2.19B2.16B1.34B582.91M221.11M40.31M
Total Debt
926.53M951.84M458.01M245.84M94.95M29.94M
Net Debt
847.05M903.42M431.55M235.58M92.54M29.37M
Total Liabilities
1.35B1.36B726.55M444.39M251.41M36.71M
Stockholders Equity
837.96M803.97M608.66M138.52M-30.31M3.61M
Cash FlowFree Cash Flow
121.44M65.62M153.41M13.21M-9.98M-277.00K
Operating Cash Flow
407.09M311.94M283.99M102.31M-1.28M851.00K
Investing Cash Flow
-799.36M-749.53M-576.40M-318.24M-87.86M-1.35M
Financing Cash Flow
455.79M459.55M308.62M223.76M90.99M-38.00K

Saturn Oil & Gas Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.08
Price Trends
50DMA
1.67
Positive
100DMA
1.85
Positive
200DMA
2.07
Positive
Market Momentum
MACD
0.09
Negative
RSI
70.43
Negative
STOCH
89.94
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 2.08 is above the 20-day moving average (MA) of 1.81, above the 50-day MA of 1.67, and above the 200-day MA of 2.07, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 70.43 is Negative, neither overbought nor oversold. The STOCH value of 89.94 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$393.85M2.5822.02%37.66%782.26%
58
Neutral
$7.37B3.39-4.49%10.01%0.82%-49.15%
$362.52M30.140.67%3.76%
TSKEI
74
Outperform
C$331.45M12.0911.09%24.05%44.00%
TSTNZ
67
Neutral
C$509.64M187.11-13.52%-3.50%-153.25%
TSLGN
64
Neutral
C$392.98M47.762.74%42.32%
54
Neutral
C$237.26M-80.24%73.53%48.09%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SOIL
Saturn Oil & Gas
2.08
-0.52
-20.00%
FECCF
Frontera Energy
4.83
-0.90
-15.71%
TSE:TNZ
Tenaz Energy Corp
19.51
15.96
449.58%
TSE:KEI
Kolibri Global Energy
9.56
4.90
105.15%
TSE:GASX
NG Energy International
0.90
0.01
1.12%
TSE:LGN
Logan Energy Corp
0.64
-0.19
-22.89%

Saturn Oil & Gas Corporate Events

Stock BuybackBusiness Operations and Strategy
Saturn Oil & Gas Launches Substantial Issuer Bid to Enhance Shareholder Value
Positive
Jun 11, 2025

Saturn Oil & Gas Inc. has launched a substantial issuer bid to purchase up to 7,000,000 common shares for cancellation at CAD$2.15 per share, totaling up to $15,050,000. This initiative is part of Saturn’s strategy to maximize shareholder value, supplementing previous share repurchases and debt repayments. The company has returned over $34 million to shareholders since August 2024 and repaid approximately $91 million of debt. Saturn plans to continue exploring capital return initiatives to enhance equity value, although future actions depend on business results and strategic goals.

The most recent analyst rating on (TSE:SOIL) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Saturn Oil & Gas stock, see the TSE:SOIL Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Saturn Oil & Gas Announces Substantial Issuer Bid to Enhance Shareholder Value
Positive
Jun 5, 2025

Saturn Oil & Gas Inc. has announced its intention to commence a substantial issuer bid, offering $2.15 per common share, which represents a 20% premium over the current share price. This initiative is part of Saturn’s strategy to return capital to shareholders, with a potential total of $15 million to be returned, bringing total share repurchases to approximately $34 million since August 2024. The company aims to enhance shareholder value through this bid, supported by cost savings and production outperformance, while maintaining financial flexibility for future capital return initiatives.

The most recent analyst rating on (TSE:SOIL) stock is a Hold 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.

Shareholder MeetingsBusiness Operations and Strategy
Saturn Oil & Gas Inc. Reports Successful AGM Voting Results
Positive
May 22, 2025

Saturn Oil & Gas Inc. announced the successful voting results from their Annual General Meeting, where all proposed matters were approved. The meeting saw 74.12% of the company’s outstanding shares voted, and all eight director nominees were elected with strong support. The appointment of KPMG LLP as the auditor was also confirmed. This approval reflects shareholder confidence in Saturn’s strategic direction and governance, reinforcing its position in the energy sector.

The most recent analyst rating on (TSE:SOIL) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Saturn Oil & Gas stock, see the TSE:SOIL Stock Forecast page.

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.

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.

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.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.