Winchester Energy Ltd (WEL) AI Stock Analysis

• Market Cap: AU$1.36M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): -0.54
• Revenue Growth: -26.88%
• EPS Growth: 24.00%
• Country: AU
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 1,363,018,900
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: ―

Winchester Energy Ltd's overall score reflects significant financial challenges, including declining revenue, negative profitability, and cash flow issues. Technical analysis is limited due to a lack of data, and valuation measures such as a negative P/E ratio further highlight the company's struggles. The stock requires substantial improvements in its financial health and operational efficiency to enhance its attractiveness to investors.

Winchester Energy Ltd Business Overview & Revenue Model

Company Description

Winchester Energy Limited, together with its subsidiaries, engages in the acquisition and exploration of oil and gas properties in the United States and Australia. It had approximately 17,266 net acres located in the Eastern Shelf of the Permian Basin in Texas. The company was incorporated in 2014 and is based in West Perth, Australia.

How the Company Makes Money

Winchester Energy Ltd makes money through the exploration, development, and production of oil and gas resources. The company's primary revenue streams include the sale of crude oil and natural gas extracted from its operated fields. These revenues are influenced by global commodity prices, production volumes, and operational efficiency. Additionally, Winchester Energy may enter into joint ventures or partnerships to share risks and costs associated with exploration and production activities, although specific details of such partnerships would depend on ongoing operational strategies. The company also focuses on optimizing production techniques and managing costs to enhance profitability.

Winchester Energy Ltd Financial Statement Overview

Summary

Winchester Energy Ltd faces considerable financial challenges with declining revenue and profitability metrics, negative profit margins, and cash flows. Despite a low debt-to-equity ratio, liquidity concerns and declining equity overshadow this strength. The company requires strategic restructuring to improve financial stability.

Income Statement

Winchester Energy Ltd has experienced significant revenue decline over the recent period, from $5.65M in 2022 to $1.85M in 2024, reflecting a negative growth trajectory. The company has consistently reported negative net income, leading to negative net profit margins. The absence of EBIT and negative EBITDA further highlight profitability challenges, indicating operational inefficiencies.

Balance Sheet

The company's balance sheet shows a moderately healthy equity position with a stockholders' equity of $5.84M against total assets of $7.11M. The debt-to-equity ratio is low, indicating conservative leverage. However, the declining equity over time and reduced total assets suggest potential liquidity and growth challenges.

Cash Flow

Winchester Energy Ltd's cash flow statements reveal significant negative free cash flow, indicating cash outflows surpass inflows, which could constrain future operations and investments. The operating cash flow has also turned negative, reflecting operational struggles. However, the company has managed to secure financing, which may provide short-term relief.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.28M	1.85M	3.12M	5.65M	4.15M	2.22M
Gross Profit	2.57M	1.85M	2.12M	2.60M	850.47K	-753.55K
EBITDA	-2.45M	-573.08K	-1.92M	739.18K	1.10M	-380.19K
Net Income	-5.82M	-1.33M	-2.56M	-2.67M	-1.45M	-3.44M
Balance Sheet
Total Assets	8.02M	7.11M	8.02M	10.19M	10.34M	8.14M
Cash, Cash Equivalents and Short-Term Investments	219.21K	519.95K	219.21K	738.99K	2.56M	1.61M
Total Debt	77.00K	117.04K	77.00K	76.84K	113.65K	64.39K
Total Liabilities	1.41M	1.27M	1.41M	1.10M	802.33K	694.22K
Stockholders Equity	6.62M	5.84M	6.62M	9.09M	9.54M	7.45M
Cash Flow
Free Cash Flow	-1.12M	-227.22K	-489.53K	-6.30M	-2.25M	-3.70M
Operating Cash Flow	821.41K	0.00	366.70K	-1.59M	1.02M	-280.98K
Investing Cash Flow	-1.94M	-608.86K	-846.27K	-4.71M	-3.23M	-3.42M
Financing Cash Flow	-62.84K	560.60K	-41.00K	-37.71K	3.19M	-116.62K

Winchester Energy Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORG	71 Outperform	AU$21.53B	14.54	14.92%	4.78%	6.48%	6.25%
CUE	70 Outperform	AU$83.97M	13.33	―	12.50%	10.44%	-55.67%
STO	65 Neutral	AU$22.36B	14.14	7.88%	5.33%	-5.81%	-17.90%
BPT	60 Neutral	AU$2.71B	-61.98	-1.39%	7.53%	17.16%	90.79%
WEL	44 Neutral	AU$1.36M	―	-26.79%	―	-26.88%	24.00%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Winchester Energy Ltd Corporate Events

Winchester Energy Ltd Expands Offshore Exploration Efforts in Peru

Winchester Energy Ltd has signed a non-binding term sheet with Jaguar Exploration, Inc. to jointly apply for offshore exploration rights in Peru’s Lima and Pisco Basins. This strategic move could enhance Winchester’s operational footprint and industry positioning by potentially forming a joint venture with Jaguar, where Winchester would hold an 80% interest. Additionally, the company is implementing a cost reduction program to enhance shareholder value and maintain financial flexibility, with quarterly revenues and costs remaining stable.

Winchester Energy Ltd Announces Key Resolutions for Upcoming AGM

Winchester Energy Ltd has announced its upcoming Annual General Meeting, which will be held on May 29, 2025, in Perth, Australia. The meeting will address several key resolutions, including the adoption of the remuneration report, the re-election of directors Iain Smith and Ricardo Garzon Rangel, and the approval of a mandate to issue up to 10% of the company’s equity securities. These resolutions are significant for the company’s governance and strategic direction, potentially impacting shareholder value and the company’s capacity to raise capital.

Winchester Energy Schedules Annual General Meeting for May 2025

Winchester Energy Limited has announced its upcoming annual general meeting, scheduled for May 29, 2025, in Perth. The company will conduct a physical meeting and encourages shareholders to participate either in person or via proxy. Shareholders are advised to submit their proxy forms by May 27, 2025, and are encouraged to provide email addresses for electronic communication. The meeting will not feature any presentations, and the Chairperson intends to vote all open proxies in favor of all resolutions.

Winchester Energy Ltd Upholds ASX Governance Standards

Winchester Energy Ltd has released its corporate governance statement for the financial year ending December 31, 2024, which is available on their website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s recommendations, outlining the roles and responsibilities of the board and management, and ensuring accountability and transparency in its operations. This announcement is significant as it underscores Winchester Energy’s commitment to maintaining high governance standards, potentially enhancing stakeholder confidence and aligning with industry best practices.

Winchester Energy Releases 2024 Annual Report

Winchester Energy Limited has released its annual report for the year ending December 31, 2024. The report provides a comprehensive overview of the company’s financial performance and operational activities. This release is crucial for stakeholders as it offers insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor confidence.

Winchester Energy Pursues Offshore Exploration in Peru with Jaguar Exploration

Winchester Energy Limited has signed a non-binding term sheet with Jaguar Exploration, Inc. to jointly apply for offshore petroleum exploration rights in Peru’s Lima and Pisco Basins. If successful, Winchester will operate and hold an 80% interest in the Technical Evaluation Agreements (TEAs), with Jaguar holding the remaining 20%. The agreements will allow both companies to conduct geological and geophysical studies over a two-year period to assess the blocks’ potential. This move could enhance Winchester’s position in the offshore exploration market and potentially attract third-party investment for drilling activities.

Winchester Energy Requests Trading Halt Pending Petroleum Announcement

Winchester Energy Limited has requested a trading halt on its securities pending an announcement related to a petroleum application. This halt will last until the announcement is made or until normal trading resumes on 20 March 2025, potentially impacting the company’s market activities and stakeholder interests.