tiprankstipranks
Trending News
More News >
Tenaz Energy Corp (TSE:TNZ)
TSX:TNZ
Advertisement

Tenaz Energy Corp (TNZ) AI Stock Analysis

Compare
35 Followers

Top Page

TSE:TNZ

Tenaz Energy Corp

(TSX:TNZ)

Rating:69Neutral
Price Target:
C$23.00
▲(4.21% Upside)
The overall stock score is primarily driven by a strong technical analysis and attractive valuation, suggesting potential upside. However, financial performance concerns, particularly around profitability and leverage, temper the overall outlook.

Tenaz Energy Corp (TNZ) vs. iShares MSCI Canada ETF (EWC)

Tenaz Energy Corp Business Overview & Revenue Model

Company DescriptionTenaz Energy Corp., an energy company, engages in the acquisition and development of oil and gas assets in central Alberta. As of December 31, 2021, the company held 85.7% working interest in 36,208 acres of land at Leduc-Woodbend Rex Pool property; a 52.4% working interest in 1,920 acres of land in the Leduc-Woodbend Glauconitic D Unit No.1 property; and a 87.5% working interest in 7,175 acres of land in the Entice area. It also operated 30 producing and 35 non-producing oil wells. The company was formerly known as Altura Energy Inc. and changed its name to Tenaz Energy Corp. in October 2021. Tenaz Energy Corp. is headquartered in Calgary, Canada.
How the Company Makes MoneyTenaz Energy Corp generates revenue primarily through the extraction and sale of oil and natural gas. The company explores and develops oil and gas reserves, utilizing advanced technology to optimize production and reduce operational costs. Key revenue streams include the sale of crude oil, natural gas, and associated hydrocarbons extracted from its assets. The company may also engage in strategic partnerships and joint ventures to enhance resource development and access new markets. Additionally, Tenaz Energy Corp might benefit from favorable commodity prices and efficient resource management, which contribute significantly to its earnings.

Tenaz Energy Corp Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q1-2024)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strategic achievements and operational challenges. While there were declines in production and funds flow, the company's share buyback program, strategic acquisition, and strong hedging strategy highlight positive growth and future potential.
Q1-2024 Updates
Positive Updates
Successful Share Buyback Program
Retired a total of 2 million shares at an average cost of $2.77 since the NCIB began, with 200,000 shares retired in Q1 2024 at $3.67 per share.
Strategic Acquisition of Gas Processing Plant
Acquired a gas processing plant and surrounding oil gas leasehold for $2.8 million, enhancing control over processing capabilities and offering potential for cost reduction and increased uptime.
Production and FFO Growth Since Recapitalization
Production up about 3x and FFO up 8x from Q4 2021 to 2023, with substantially improved balance sheet and increased positive adjusted working capital.
Hedging Strategy for Natural Gas
Hedged significant portions of gas production at strong prices, with 1/5 of production hedged for TTF in Q2 and Q3 2024, and 40% hedged for winter at higher prices.
Negative Updates
Decline in Production Volumes
Production volumes decreased to approximately 2,900 boe/d due to natural declines in Canadian wells and planned/unplanned downtime in the Netherlands.
Decrease in Funds Flow from Operations
FFO registered at $7 million in Q1 2024, down from Q4 2023, due to lower production levels and slightly lower benchmark prices, despite hedging offsets.
Company Guidance
In the Q1 2024 earnings call for Tenaz Energy, CEO Anthony Marino reported production volumes of approximately 2,900 boe/d, slightly lower than Q4 2023 due to natural declines and reduced output from Canadian wells. The company recorded a funds flow from operations (FFO) of $7 million, with a free cash flow of $3.2 million after a capital expenditure of $3.8 million. Tenaz maintained a positive adjusted working capital of $49 million, facilitated by their share buyback program, which retired 200,000 shares at an average cost of $3.67 per share. A significant development was the acquisition of a gas processing plant and surrounding leasehold in Leduc-Woodbend for a net cost of $2.8 million, aimed at enhancing processing flexibility and potential third-party partnerships. The plant, with a current capacity of 7.5 million cubic feet per day, holds potential for expansion, which could increase capacity to 12 million cubic feet per day with minimal investment. Marino reaffirmed the 2024 production guidance of 2,700 to 2,900 boe/d and CapEx guidance of CAD 23 million to CAD 25 million, emphasizing ongoing M&A efforts in targeted international regions for higher return opportunities.

Tenaz Energy Corp Financial Statement Overview

Summary
Tenaz Energy Corp shows strong revenue growth but faces profitability challenges with negative margins. High leverage on the balance sheet poses financial risks, and cash flow metrics indicate difficulties in cash generation.
Income Statement
65
Positive
Tenaz Energy Corp has shown a significant revenue growth rate of 78.73% in the TTM period, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin has decreased compared to previous years, suggesting increased cost pressures.
Balance Sheet
55
Neutral
The company has a high debt-to-equity ratio of 1.56, indicating significant leverage, which could pose financial risks. The return on equity is negative, reflecting challenges in generating returns for shareholders. However, the equity ratio remains stable, suggesting a solid asset base.
Cash Flow
50
Neutral
Free cash flow has declined significantly, with a negative growth rate of -197.60% in the TTM period. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. However, the free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue107.87M63.00M64.85M34.09M17.83M8.62M
Gross Profit55.58M36.85M39.23M21.71M11.09M4.11M
EBITDA214.32M4.28M25.37M12.67M13.49M-16.38M
Net Income174.81M-7.71M26.55M5.24M8.34M-22.31M
Balance Sheet
Total Assets2.21B390.83M238.72M203.90M75.40M34.44M
Cash, Cash Equivalents and Short-Term Investments192.21M139.91M50.30M1.83M25.47M-206.00K
Total Debt171.22M138.54M244.00K21.61M167.00K4.19M
Total Liabilities1.93B298.70M142.36M132.53M10.09M11.54M
Stockholders Equity284.31M92.13M96.35M71.37M65.31M22.90M
Cash Flow
Free Cash Flow26.16M-14.51M-9.68M-7.75M-6.45M-5.47M
Operating Cash Flow57.97M6.24M15.18M9.35M3.94M2.41M
Investing Cash Flow-31.93M-54.12M58.20M-53.89M-4.24M-6.50M
Financing Cash Flow134.56M137.85M-25.36M20.91M25.76M3.95M

Tenaz Energy Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.07
Price Trends
50DMA
19.95
Positive
100DMA
18.06
Positive
200DMA
15.88
Positive
Market Momentum
MACD
1.07
Negative
RSI
72.27
Negative
STOCH
87.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TNZ, the sentiment is Positive. The current price of 22.07 is above the 20-day moving average (MA) of 20.84, above the 50-day MA of 19.95, and above the 200-day MA of 15.88, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 72.27 is Negative, neither overbought nor oversold. The STOCH value of 87.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TNZ.

Tenaz Energy Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
C$617.94M3.6191.45%65.41%573.12%
65
Neutral
$15.28B7.483.19%5.33%4.10%-60.58%
$404.82M5.39-14.03%
$490.88M12.457.20%7.51%
$301.57M28.91-28.80%4.18%
67
Neutral
C$462.33M19.239.82%42.95%4522.22%
47
Neutral
C$452.95M-7.43%28.22%-87.20%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TNZ
Tenaz Energy Corp
22.07
14.28
183.31%
OBE
Obsidian Energy
5.84
0.10
1.74%
ZPTAF
Surge Energy
4.78
0.76
18.91%
FECCF
Frontera Energy
4.30
-1.46
-25.35%
TSE:CEI
Coelacanth Energy, Inc.
0.84
0.06
7.69%
TSE:LGN
Logan Energy Corp
0.78
-0.02
-2.50%

Tenaz Energy Corp Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Tenaz Energy Corp Reports Robust Q2 2025 Growth Following Strategic Acquisition
Positive
Aug 7, 2025

Tenaz Energy Corp reported significant financial and operational growth in Q2 2025, driven by its recent acquisition of NAM Offshore B.V. The acquisition contributed to a 176% increase in production volumes and a substantial rise in funds flow from operations. The company also reported a notable increase in net income due to a gain on acquisition. Despite the increase in net debt, Tenaz remains focused on long-term success, leveraging its expanded team and infrastructure in the Netherlands.

The most recent analyst rating on (TSE:TNZ) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on Tenaz Energy Corp stock, see the TSE:TNZ Stock Forecast page.

Shareholder Meetings
Tenaz Energy Corp. Reports Successful 2025 Annual Meeting Outcomes
Positive
May 30, 2025

Tenaz Energy Corp. announced the results of its 2025 annual meeting of shareholders, where all proposed matters were approved. The meeting saw the election of six directors, reappointment of Deloitte LLP as auditor, and approval of all unallocated awards under the Tenaz Incentive Plan. This indicates strong shareholder support and stability in the company’s governance, potentially reinforcing its market position and investor confidence.

The most recent analyst rating on (TSE:TNZ) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on Tenaz Energy Corp stock, see the TSE:TNZ Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Tenaz Energy Reports Q1 2025 Results and Strategic Acquisition
Neutral
May 8, 2025

Tenaz Energy Corp. announced its Q1 2025 financial results, highlighting a 3% increase in production volumes compared to Q4 2024, driven by reduced downtime in the Netherlands and new Canadian drilling contributions. The company completed the acquisition of NAM Offshore B.V., now renamed Tenaz Energy Netherlands B.V., which is expected to significantly enhance its production capacity. Despite a net loss of $5.3 million due to higher interest and transaction costs, Tenaz maintains a strong cash position and plans significant investments in its newly acquired assets, projecting self-funded operations in both its Netherlands and Canada units.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Tenaz Energy Corp. Reports Q1 2025 Results and Strategic Acquisition
Neutral
May 8, 2025

Tenaz Energy Corp. reported its Q1 2025 results, highlighting the completion of its acquisition of NAM Offshore B.V., now renamed Tenaz Energy Netherlands B.V. This acquisition is expected to significantly boost production, with updated guidance reflecting an increase in production volumes and capital investment plans. Despite a net loss of $5.3 million for the quarter, attributed to higher interest and transaction costs, the company maintains a strong cash position and plans to self-fund its revised capital program. The acquisition and subsequent production increase position Tenaz Energy for enhanced operational performance and market competitiveness.

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.Date of analysis: Aug 20, 2025