Otto Energy Limited (OEL) AI Stock Analysis

Otto Energy Limited

(ASX:OEL)

Select Model

Rating:64Neutral

Price Target:AUD 0.01▲(83.33% Upside)

Action:reiterated

Date:09/19/26

The score is primarily driven by a robust debt-free balance sheet and attractive low P/E valuation, with revenue declines and sparse technical data as moderating factors.

Positive Factors

Debt-free balance sheetA debt-free balance sheet gives Otto Energy greater resilience across commodity and operating cycles. Limited leverage reduces interest and refinancing pressure, while sizable equity preserves flexibility to fund upstream opportunities, absorb weaker results, and allocate capital without relying heavily on external borrowing.

Negative Factors

Declining revenue trendA multi-year revenue decline weakens confidence that Otto Energy is expanding its production base or replacing mature asset output. Continued top-line softness can reduce operating leverage, constrain investment capacity, and make recent profitability harder to sustain across future reporting periods.

Otto Energy Limited (OEL) vs. iShares MSCI Australia ETF (EWA)

Not enough price history over this period.

Market Cap: AUD 26.37M
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): 5.4
Beta (1Y): 0.00
Revenue Growth: -6.93%
EPS Growth: 300.00%
Country: Australia
Employees: 6
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Exploration & Production

Otto Energy Limited Business Overview & Revenue Model

Company Description

Otto Energy Limited is an oil and gas exploration and production enterprise operating across North America via its various subsidiaries. A key asset for the company is its 50% ownership stake in the South Marsh Island 71 project. The firm's portfolio...

How the Company Makes Money

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Otto Energy Limited Financial Statement Overview

Summary

Healthy debt-free balance sheet and improved profitability support the score, despite revenue declines and inconsistent free cash flow.

Income Statement

48Neutral

Balance Sheet

85Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	23.64M	22.45M	23.64M	31.08M	49.70M	58.74M
Gross Profit	13.25M	11.07M	12.85M	14.97M	27.64M	44.98M
EBITDA	-308.33K	10.59M	-244.62K	4.15M	27.13M	38.30M
Net Income	643.34K	6.10M	1.12M	-2.52M	-10.42M	21.39M
Balance Sheet
Total Assets	45.29M	52.47M	45.29M	82.09M	91.32M	104.99M
Cash, Cash Equivalents and Short-Term Investments	22.64M	33.48M	22.64M	60.71M	39.63M	44.10M
Total Debt	0	0	0	0	1.95M	2.83M
Total Liabilities	11.15M	14.07M	11.15M	12.08M	18.54M	24.35M
Stockholders Equity	34.13M	38.39M	34.13M	70.01M	72.78M	80.64M
Cash Flow
Free Cash Flow	-4.34M	0	-3.78M	11.70M	3.09M	19.92M
Operating Cash Flow	1.64M	11.90M	1.83M	11.70M	25.48M	20.67M
Investing Cash Flow	-2.39M	281.87K	-1.95M	10.18M	-23.31M	13.71M
Financing Cash Flow	-39.46M	0	-38.65M	0	-3.42M	-12.76M

Otto Energy Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

AU:OEL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
AU:OEL	64Neutral	AUD 33.57M	5.38	16.54%	―	-6.93%	300.00%
AU:BAS	64Neutral	AUD 20.55M	-35.82	-3.17%	―	-13.00%	33.33%
AU:BLU	46Neutral	AUD 9.04M	-15.00	-1.65%	―	―	37.50%
AU:BRU	44Neutral	AUD 20.38M	-3.33	-23.11%	―	―	71.52%
AU:MAY	43Neutral	AUD 11.35M	-0.23	-133.55%	―	―	-1008.33%
AU:ADX	42Neutral	AUD 18.43M	-0.89	-192.54%	―	-15.18%	-20.25%

* Energy Sector Average

Performance Comparison

AU:OEL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
AU:OEL	Otto Energy Limited	―	―	―
AU:ADX	Adx Energy Ltd	0.02	-0.01	-46.88%
AU:BRU	Buru Energy Limited	0.01	-0.00	-16.67%
AU:MAY	Melbana Energy Limited	0.01	-0.00	-33.33%
AU:BLU	Blue Energy Limited	―	―	―
AU:BAS	Bass Oil Ltd	0.06	0.03	86.67%

Otto Energy Limited Corporate Events

Otto Energy Boosts Cash and Profit in FY26, Eyes Shareholder Returns

Sep 17, 2026

Otto Energy reported FY26 net operating revenue of US$15.2 million, slightly down on the prior year, but lifted net operating cash flow to US$8.1 million as it curtailed exploration spending and reduced overheads for a third consecutive year. Adjuste...

Otto Energy Refocuses Gulf of America Asset Sale on SM 71

Sep 10, 2026

Otto Energy has concluded a broadly marketed process to sell its Gulf of America assets as a combined package, finding strong interest but no actionable transaction for both South Marsh Island 71 and Green Canyon 21 together. Market feedback highligh...

Otto Energy Updates 2026 Reserves With Declines In Line With Production

Aug 13, 2026

Otto Energy reported that its reserves as of 30 June 2026 declined broadly in line with production, with net proved reserves falling 21% to 1.4 million barrels of oil equivalent and 2P reserves down 15%, while 3P reserves slipped 11%. Despite these r...

Otto Energy Cash Flow Strengthens as It Weighs Gulf Asset Sale

Jul 31, 2026

Otto Energy reported a robust June quarter with a cash balance of US$23.2 million, no debt and net operating cash inflow of US$2.2 million, supported by higher oil volumes and a strong liquids price environment. Quarterly revenue rose to about US$6.0...

Otto Energy Launches Sale Process for Gulf of America Oil Assets

Jun 24, 2026

Otto Energy has launched a formal process to evaluate the potential sale of its Gulf of America oil and gas interests in the South Marsh Island 71 field and Green Canyon 21 deepwater well. The move follows the board’s conclusion that the compan...

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: Sep 19, 2026

Otto Energy Limited AI Stock Analysis