tiprankstipranks
Newmed Energy Limited Partnership (IL:NWMD)
TASE:NWMD
Want to see IL:NWMD full AI Analyst Report?

Newmed Energ Pu (NWMD) AI Stock Analysis

7 Followers

Top Page

IL:NWMD

Newmed Energ Pu

(TASE:NWMD)

Select Model
Select Model
Select Model
Neutral 64 (OpenAI - Gpt-5.6Sol)
Rating:64Neutral
Price Target:
1,826.00
▲(12.72% Upside)
Action:Downgraded
Date:08/20/26
The score is driven primarily by strong profitability but meaningful weakness in cash-flow quality and free cash flow, which is the main financial risk. Earnings-call commentary adds support via improving production, pricing, and visible infrastructure/growth catalysts, while technicals are mixed (short-term strength but below longer-term averages). Valuation is a modest headwind given the P/E, partially balanced by the dividend yield.
Positive Factors
Production and Revenue Expansion
Higher production across Israel, Egypt, and Jordan, combined with stronger realized prices, demonstrates improving asset utilization and regional demand. Sustained volume growth can support recurring revenue and operating leverage as infrastructure expands.
Negative Factors
Sharp Free Cash Flow Deterioration
Weak cash conversion means reported profitability is not translating efficiently into discretionary cash. Higher working capital, taxes, interest, or sustaining capital needs could constrain debt reduction, distributions, and funding for major projects.
Read all positive and negative factors
Positive Factors
Negative Factors
Production and Revenue Expansion
Higher production across Israel, Egypt, and Jordan, combined with stronger realized prices, demonstrates improving asset utilization and regional demand. Sustained volume growth can support recurring revenue and operating leverage as infrastructure expands.
Read all positive factors

Newmed Energ Pu (NWMD) vs. iShares MSCI Israel ETF (EIS)

Newmed Energ Pu Business Overview & Revenue Model

Company Description
NewMed Energy - Limited Partnership is an energy firm engaged in the exploration, development, production, and commercialization of petroleum, natural gas, and condensate, primarily operating in Israel and Cyprus. The company holds significant int...
How the Company Makes Money
Newmed Energy primarily makes money by selling natural gas produced from its upstream interests (typically via partners/operators and joint-venture style arrangements) to customers under gas sales agreements. Revenue is generally driven by (1) its...

Newmed Energ Pu Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial improvements: production increased ~35%, revenues rose ~53% and net income ~44%, supported by higher gas prices and completed midstream works. Material infrastructure milestones (third pipeline, Ashdod–Ashkelon looping) and progress on major growth projects (Leviathan expansion on schedule, Aphrodite progressing toward FID) provide clear upside. Offsetting considerations include rising operating costs (+$21M), higher finance expenses (+$26M), net debt of ~$1.4B with an upcoming bond maturity in 2027, and some benefits that are timing‑lagged or accrue to partners rather than immediately to NewMed. Overall, positive momentum and meaningful value catalysts outweigh the noted financial and timing challenges.
Positive Updates
Strong Production Growth
Q2 2026 production of ~2.7 Bcm vs 2.0 Bcm in Q2 2025, an increase of ~0.7 Bcm (+35%). All three markets (Israel, Egypt, Jordan) grew, with Egyptian volumes increasing by ~0.5 Bcm in the quarter.
Negative Updates
Rising Operating Costs and Depreciation
Costs and expenses increased by ~$21M year‑over‑year, mainly from higher operations costs and depreciation, partially offsetting revenue gains.
Read all updates
Q2-2026 Updates
Negative
Strong Production Growth
Q2 2026 production of ~2.7 Bcm vs 2.0 Bcm in Q2 2025, an increase of ~0.7 Bcm (+35%). All three markets (Israel, Egypt, Jordan) grew, with Egyptian volumes increasing by ~0.5 Bcm in the quarter.
Read all positive updates
Company Guidance
Management guided that Q2‑2026 results included production of 2.7 Bcm (vs. 2.0 Bcm in Q2‑2025, with ~+0.5 Bcm to Egypt), revenues of $293M (vs. $191M), net profit of ~$117–118M, average gas price $6.5/MMBtu (vs. $5.6), and a $60M dividend; net revenues rose ~$86M (≈$59M from higher production, $25M from higher price, $2.1M condensate) partially offset by ~$21M higher costs and ~$26M higher finance expenses, plus $6.8M other revenues and $7.7M discontinued‑operation income. Liquidity/financial guidance: net debt ≈$1.4B, $550M available bank facilities, ~$95M of bond buybacks to date, next bond maturity June‑2027. Capex/project guidance: third pipeline lifts peak capacity to 15.8 Bcm/year (from ~14.5, +1 Bcm), Ashdod–Ashkelon looping adds ~2 Bcm/year (allocated to Leviathan partners), Leviathan Phase‑1b on track for H2‑2029 with total cost ~$2.4B and ~23% complete and a rig to drill 3 wells by year‑end; FAJR+compression due EOY, Nitzana ahead of Phase‑2, Aphrodite FID targeted H1‑2027, and upcoming seismic surveys including a ~5,000‑node OBN survey.

Newmed Energ Pu Financial Statement Overview

Summary
Profitability remains strong (TTM gross margin ~50%, net margin ~29%) and leverage has improved versus prior years (debt-to-equity ~0.83), but cash generation is the key weakness: TTM free cash flow fell to ~55M (down ~75% vs prior period) with weak cash conversion (FCF ~14% of net income and operating cash flow below net income). Recent debt increase vs 2025 also reduces flexibility if the cycle stays softer.
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
45
Neutral
BreakdownTTMDec 2025Dec 2024Mar 2024Dec 2022Dec 2021
Income Statement
Total Revenue915.60M938.07M1.14B934.60M1.14B882.50M
Gross Profit458.84M585.08M718.10M780.70M701.70M518.11M
EBITDA733.57M760.65M874.80M782.70M872.10M657.20M
Net Income263.65M371.29M524.60M433.60M469.70M404.90M
Balance Sheet
Total Assets4.05B3.97B3.99B3.85B3.94B3.85B
Cash, Cash Equivalents and Short-Term Investments163.80M157.53M384.50M186.70M418.30M340.85M
Total Debt1.56B1.12B1.63B1.82B2.16B2.22B
Total Liabilities2.17B2.08B2.21B2.33B2.65B2.91B
Stockholders Equity1.88B1.89B1.79B1.51B1.29B938.54M
Cash Flow
Free Cash Flow54.61M304.72M463.30M423.10M405.80M423.25M
Operating Cash Flow404.03M547.08M577.50M559.50M504.70M453.64M
Investing Cash Flow-533.88M30.20M-114.20M36.10M-273.50M982.04M
Financing Cash Flow-208.48M-516.12M-441.20M-588.90M-429.10M-1.29B

Newmed Energ Pu Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1620.00
Price Trends
50DMA
1628.36
Positive
100DMA
1680.40
Positive
200DMA
1757.13
Negative
Market Momentum
MACD
19.62
Negative
RSI
58.60
Neutral
STOCH
91.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NWMD, the sentiment is Positive. The current price of 1620 is below the 20-day moving average (MA) of 1658.51, below the 50-day MA of 1628.36, and below the 200-day MA of 1757.13, indicating a neutral trend. The MACD of 19.62 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 91.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:NWMD.

Newmed Energ Pu Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
₪2.26B17.4114.90%-15.98%-22.66%
64
Neutral
₪20.06B25.9824.33%3.74%-18.59%-52.07%
63
Neutral
₪16.21B4.764.49%6.28%-43.39%268.02%
63
Neutral
₪428.42M23.7823.14%-1.64%9.82%
59
Neutral
₪16.09B17.143.02%920.97%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:NWMD
Newmed Energ Pu
1,709.00
141.02
8.99%
IL:DLEKG
Delek Group
8,928.00
1,857.41
26.27%
IL:ISRA
Isramco Pu
214.60
6.46
3.10%
IL:TOEN
Tomer Energy
2,142.00
145.14
7.27%
IL:TMRP
Tamar Pet
2,821.00
-814.61
-22.41%
IL:NVPT
Navitas Ptro Pu
13,050.00
2,964.39
29.39%
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, 2026