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Tenaz Energy Corp (TSE:TNZ)
TSX:TNZ

Tenaz Energy Corp (TNZ) AI Stock Analysis

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Tenaz Energy Corp

(TSX:TNZ)

Rating:69Neutral
Price Target:
C$21.50
▲(7.82%Upside)
Tenaz Energy Corp's overall stock score reflects a mixed financial performance with significant strengths in technical analysis and corporate events. The stock's bullish momentum and strategic acquisitions are positive factors, but the negative P/E ratio and lack of dividend yield present valuation challenges. Addressing revenue growth and profitability issues are crucial for future stability.

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

Tenaz Energy Corp Business Overview & Revenue Model

Company DescriptionTenaz Energy Corp (TNZ) is a Canadian-based energy company primarily involved in the exploration, development, and production of oil and natural gas. Operating within the energy sector, the company's core activities focus on the acquisition and management of high-quality oil and gas assets, with an emphasis on sustainable and efficient energy production practices.
How the Company Makes MoneyTenaz Energy Corp generates revenue through the exploration and production of oil and natural gas, which it sells to various markets. The company's key revenue streams include the sale of crude oil, natural gas liquids, and natural gas. Tenaz Energy may also engage in strategic partnerships and joint ventures to enhance its operational capabilities and expand its asset base, which can contribute to its earnings. Additionally, the company may benefit from favorable commodity prices and efficient cost management practices to maximize profitability.

Tenaz Energy Corp Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2024)
|
% Change Since: 39.15%|
Next Earnings Date:Aug 08, 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 has a mixed financial performance with strengths in liquidity and operational efficiency, but faces challenges with declining revenue, negative net income, and high leverage.
Income Statement
65
Positive
Tenaz Energy Corp showed a mixed performance in its income statement. The company experienced a decline in total revenue from the previous year, leading to a negative revenue growth rate. Gross profit margin stands at about 58.5%, indicating efficient cost management. However, the net profit margin is negative due to a net loss, which is a concern. The company also has no positive EBIT, but the EBITDA margin is positive at 6.8%, suggesting some operational efficiencies.
Balance Sheet
70
Positive
The balance sheet reveals a moderate financial position. The debt-to-equity ratio is 1.50, indicating higher reliance on debt financing, which could be risky. However, a strong equity ratio of 23.6% suggests a solid equity base relative to total assets. The negative net debt position implies that the company has more cash and short-term investments than total debt, reflecting good liquidity.
Cash Flow
60
Neutral
Cash flow analysis shows challenges, with a significant drop in operating cash flow compared to the previous year. Free cash flow remains negative, indicating cash outflow after capital expenditures. The company’s free cash flow to net income ratio is not favorable due to the net loss. Despite the negative free cash flow, high financing cash flow indicates potential external funding, which needs to be monitored.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue63.00M64.85M34.09M17.83M8.62M
Gross Profit36.85M39.23M21.71M11.09M4.11M
EBITDA4.28M25.37M12.67M13.49M-16.38M
Net Income-7.71M26.55M5.24M8.34M-22.31M
Balance Sheet
Total Assets390.83M238.72M203.90M75.40M34.44M
Cash, Cash Equivalents and Short-Term Investments139.91M50.30M1.83M25.47M-206.00K
Total Debt138.54M244.00K21.61M167.00K4.19M
Total Liabilities298.70M142.36M132.53M10.09M11.54M
Stockholders Equity92.13M96.35M71.37M65.31M22.90M
Cash Flow
Free Cash Flow-14.51M-9.68M-7.75M-6.45M-5.47M
Operating Cash Flow6.24M15.18M9.35M3.94M2.41M
Investing Cash Flow-54.12M58.20M-53.89M-4.24M-6.50M
Financing Cash Flow137.85M-25.36M20.91M25.76M3.95M

Tenaz Energy Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.94
Price Trends
50DMA
17.42
Positive
100DMA
15.38
Positive
200DMA
13.71
Positive
Market Momentum
MACD
0.82
Positive
RSI
67.92
Neutral
STOCH
83.24
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 19.94 is above the 20-day moving average (MA) of 19.45, above the 50-day MA of 17.42, and above the 200-day MA of 13.71, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 67.92 is Neutral, neither overbought nor oversold. The STOCH value of 83.24 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSFEC
72
Outperform
C$520.97M30.180.67%3.61%-0.37%-92.83%
TSTNZ
69
Neutral
C$563.24M187.11-13.52%-3.50%-153.25%
TSLGN
60
Neutral
C$329.41M44.032.74%42.32%
TSCEI
54
Neutral
C$441.05M-6.69%41.39%-61.36%
TSSGY
52
Neutral
C$604.89M-5.48%8.54%-2.37%-421.59%
52
Neutral
C$2.91B-1.09-3.26%6.12%5.32%-43.41%
TSOBE
50
Neutral
$545.39M5.64-12.88%11.92%-304.98%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TNZ
Tenaz Energy Corp
20.33
16.55
437.83%
TSE:OBE
Obsidian Energy
7.93
-2.29
-22.41%
TSE:FEC
Frontera Energy
6.75
-0.82
-10.79%
TSE:SGY
Surge Energy
6.22
-0.15
-2.29%
TSE:CEI
Coelacanth Energy, Inc.
0.83
0.08
10.67%
TSE:LGN
Logan Energy Corp
0.59
-0.31
-34.44%

Tenaz Energy Corp Corporate Events

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.

M&A TransactionsBusiness Operations and Strategy
Tenaz Energy Completes Strategic Acquisition of NAM Offshore B.V.
Positive
May 1, 2025

Tenaz Energy Corp. has successfully completed the acquisition of NAM Offshore B.V., now renamed Tenaz Energy Netherlands B.V., from a joint venture between Shell PLC and ExxonMobil Corporation. This acquisition positions Tenaz as a significant player in the Dutch North Sea natural gas sector. The company received approximately €15 million cash at closing and plans to invest $55 to $61 million in the acquired assets for the remainder of 2025, focusing on drilling and workover activities. The acquisition aligns with Tenaz’s strategy to expand its international footprint and is expected to enhance its production capabilities, with a forecasted average production of 10,000 boe/d for 2025.

M&A TransactionsBusiness Operations and Strategy
Tenaz Energy Nears Completion of Strategic NOBV Acquisition
Positive
Apr 22, 2025

Tenaz Energy Corp. announced the expected closing of its acquisition of NAM Offshore B.V. (NOBV) from Nederlandse Aardolie Maatschappij B.V., a joint venture between Shell PLC and ExxonMobil Corporation, with the transition activities completed ahead of schedule. This acquisition is set to enhance Tenaz’s operations in the Netherlands by integrating experienced staff and leveraging underutilized infrastructure, positioning the company for long-term success in the region.

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: Jun 13, 2025