Tenaz Energy Corp (TNZ) AI Stock Analysis

• Market Cap: C$2.08B
• Dividend Yield: N/A
• Average Volume (3M): 114.27K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.70
• Revenue Growth: 194.52%
• EPS Growth: 10204.44%
• Country: CA
• Employees: 21
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 3.32
• Shares Outstanding: 32,053,000
• 10 Day Avg. Volume: 193,159
• 30 Day Avg. Volume: 114,265
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 15.39
• 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$77.46
• Price Target Upside: 195.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.36
• Revenue Forecast (FY): C$664.80M

• Rating: 72 Outperform
• Price Target: C$72.00 ▲(174.39% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is led by attractive valuation (very low P/E) and strong technical uptrend. Offsetting this, financial performance is improved but carries meaningful quality/consistency concerns (sharp gross margin decline, unusually high net margin indicating non-core impacts, and only moderate cash conversion) alongside moderate leverage.

Positive Factors

Revenue growth and scale

A ~50% revenue step-up indicates meaningful scale expansion that can improve fixed-cost absorption and per-unit economics for upstream operations. Sustained higher revenue supports reinvestment, development drilling and accretive acquisitions that can compound productive capacity and long-term cash flow.

Strong EBITDA margins

A ~51% EBITDA margin points to efficient operating performance in the latest period, reflecting strong field-level profitability. Durable midstream/operational efficiencies and disciplined operating costs can sustain cash generation, supporting maintenance capex and value-accretive spending over multiple quarters.

Improved cash generation

Return to positive operating and free cash flow, with FCF up ~14% YoY, strengthens the company's ability to self-fund operations, service debt and pursue selective investments. Improved cash conversion versus prior negative-FCF years enhances financial flexibility for sustaining production and disciplined capital allocation.

Negative Factors

Earnings quality concerns

An unusually high net margin (~111%) tied to likely non-core or one-time items undermines the predictive value of reported earnings. This makes it harder to assess sustainable profitability and free cash generation, complicating long-term planning for capex, debt reduction and shareholder returns.

Sharp gross margin decline

A collapse in gross margin to ~10% from prior 58–64% signals deterioration in core operating profitability. If structural, such a decline pressures the firm's ability to fund development, maintain margins through volatility, and sustain operating cash flow even if headline EBITDA looks strong due to one-offs.

Moderate leverage and weak cash conversion

Leverage at ~0.78 after a recent rise and operating cash flow covering only ~38% of net income reduce financial resilience. The combination raises sensitivity to commodity or operational shocks, limits buffer for sustained capex or acquisitions, and constrains the pace of durable deleveraging.

Tenaz Energy Corp Business Overview & Revenue Model

Company Description

Tenaz 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 Money

Tenaz Energy makes money primarily by producing and selling hydrocarbons (crude oil, natural gas, and potentially associated natural gas liquids where applicable) from its operated and non-operated upstream assets. Revenue is generated based on production volumes multiplied by realized commodity prices, net of marketing/transport differentials and royalties payable to mineral owners and/or governments. Earnings are influenced by commodity price movements and the company’s ability to maintain or grow production through development drilling, workovers, and field optimization, as well as through acquisitions of producing properties that add reserves and cash flow. If the company uses commodity hedging, realized revenue and cash flow may also be affected by gains or losses on derivative contracts; specific hedging details are null. Material partnership details are null.

Tenaz Energy Corp Financial Statement Overview

Summary

Recent results show a strong scale step-up (revenue up ~50%) and solid EBITDA margin (~51%), but earnings quality and consistency are key risks: gross margin fell sharply (~10%) and net margin (~111%) suggests material non-core/one-time impacts. Cash conversion is only moderate (operating cash flow to net income ~0.38) and prior years included negative free cash flow, while leverage is moderate (debt-to-equity ~0.78) after rising versus earlier low-leverage periods.

Income Statement

The latest annual period shows a sharp step-up in scale, with revenue up ~50% and strong EBITDA margin (~51%), pointing to materially improved operating performance. However, profitability quality looks mixed: gross margin fell to ~10% (down sharply from ~58–64% in prior years), and net margin is unusually high (~111%), suggesting results likely benefited from non-core or one-time items rather than pure operating earnings. Prior-year volatility (losses in 2024; strong profits in 2023 and 2021) highlights earnings cyclicality typical of the sector.

Balance Sheet

The balance sheet expanded significantly, and leverage is moderate in the latest annual period (debt-to-equity ~0.78), improved versus 2024 (~1.50) but higher than the very low leverage seen in earlier years. Equity is meaningful, but the pace of debt increase versus prior periods raises sensitivity to commodity prices and execution. Return on equity is very strong in the latest year, though the same caveat applies that net income may include non-recurring drivers.

Cash Flow

Cash generation improved with positive operating cash flow and positive free cash flow in the latest annual period, and free cash flow grew ~14% year over year. That said, cash conversion is only moderate: operating cash flow is well below net income (operating cash flow to net income ~0.38), implying earnings are not fully translating into cash. The track record also shows multiple years of negative free cash flow before the latest period, which adds uncertainty around sustainability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	284.13M	63.00M	64.85M	34.09M	17.83M
Gross Profit	29.61M	36.85M	39.23M	21.71M	11.09M
EBITDA	144.53M	4.28M	25.37M	12.67M	13.49M
Net Income	315.61M	-7.71M	26.55M	5.24M	8.34M
Balance Sheet
Total Assets	2.53B	390.83M	238.72M	203.90M	75.40M
Cash, Cash Equivalents and Short-Term Investments	103.55M	139.91M	50.30M	1.83M	25.47M
Total Debt	341.27M	138.54M	244.00K	21.61M	167.00K
Total Liabilities	2.09B	298.70M	142.36M	132.53M	10.09M
Stockholders Equity	438.09M	92.13M	96.35M	71.37M	65.31M
Cash Flow
Free Cash Flow	48.60M	-14.51M	-9.68M	-7.75M	-6.45M
Operating Cash Flow	115.85M	6.24M	15.18M	9.35M	3.94M
Investing Cash Flow	-368.93M	-54.12M	58.20M	-53.89M	-4.24M
Financing Cash Flow	170.00M	137.85M	-25.36M	20.91M	25.76M

Tenaz Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.24
• 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:TNZ, the sentiment is Positive. The current price of 26.24 is below the 20-day moving average (MA) of 52.08, below the 50-day MA of 43.10, and below the 200-day MA of 27.48, indicating a bullish trend. The MACD of 5.59 indicates Negative momentum. The RSI at 85.14 is Negative, neither overbought nor oversold. The STOCH value of 90.61 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOIL	74 Outperform	$898.62M	2.80	24.42%	―	24.36%	-55.40%
SGY	73 Outperform	C$882.65M	17.02	5.47%	7.59%	-7.36%	―
TNZ	72 Outperform	C$2.08B	2.37	112.36%	―	194.52%	10204.44%
LGN	67 Neutral	C$560.58M	13.40	10.64%	―	40.83%	26.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
OBE	62 Neutral	C$809.03M	16.60	-14.96%	―	-11.85%	-307.86%
SNM	57 Neutral	C$575.65M	18.35	11.72%	―	46.17%	-82.95%

Tenaz Energy Corp Corporate Events

Tenaz Energy’s 2025 Acquisitions Drive Surging Output and Profits Amid Higher Leverage

Tenaz Energy reported a transformative 2025, driven by the acquisition of NAM Offshore B.V., now Tenaz Energy Netherlands, and Hansa Hydrocarbons, which added material interests in the Gateway to the Ems project in the North Sea. These deals expanded its offshore portfolio, provided substantial development and exploration inventory, and underpinned a multi-year organic growth program, including a successful K07-FB-103 exploration well.

Production averaged 15,556 boe/d in the fourth quarter and 9,609 boe/d for the year, up 257% from 2024, while funds flow from operations surged nearly fivefold to $120.4 million and net income reached $315.6 million after prior-year losses. To finance growth, net debt rose to $345.2 million, supported by new senior unsecured notes, expanded credit facilities, and ongoing share buybacks, signaling an aggressive but structured growth and capital-return strategy as the company also refreshes its investor relations leadership.

The most recent analyst rating on (TSE:TNZ) stock is a Hold with a C$44.00 price target. To see the full list of analyst forecasts on Tenaz Energy Corp stock, see the TSE:TNZ Stock Forecast page.

Tenaz Energy Renews Share Buyback, Authorized to Repurchase Up to 8.4% of Shares

Tenaz Energy Corp., a Canada-listed oil and gas producer with key operations in the Dutch North Sea and Alberta’s Leduc-Woodbend, continues to focus on sustainable development and international asset acquisition. The company’s shares trade on the TSX under the symbol TNZ, providing investors exposure to both natural gas and crude oil markets.

Tenaz has renewed its normal course issuer bid, securing TSX approval to repurchase up to 2,683,322 common shares, or about 8.4% of its issued and outstanding stock, between February 17, 2026 and February 16, 2027. Funded from cash and future free cash flow, the buyback will be executed via open-market purchases, supported by an automatic share purchase plan, and all repurchased shares will be cancelled, signalling capital-return discipline and confidence in the company’s valuation.

Under its prior buyback program ending February 13, 2026, Tenaz repurchased 366,100 shares at a weighted average price of $19.13, contributing to a cumulative total of 2.5 million shares repurchased since 2022. The renewed authorization expands Tenaz’s flexibility to manage its capital structure in response to share price, commodity markets and operational outlook, potentially enhancing shareholder value over time.

The most recent analyst rating on (TSE:TNZ) stock is a Hold with a C$44.00 price target. To see the full list of analyst forecasts on Tenaz Energy Corp stock, see the TSE:TNZ Stock Forecast page.