Canacol Energy (CNE) AI Stock Analysis

• Market Cap: $101.34M
• Dividend Yield: 6.77%
• Average Volume (3M): 19.28K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 1.05
• Revenue Growth: 20.91%
• EPS Growth: -139.18%
• Country: CA
• Employees: 396
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -1.34
• Shares Outstanding: 34,119,987
• 10 Day Avg. Volume: 34,124
• 30 Day Avg. Volume: 19,277
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 10.42
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Canacol Energy's overall score reflects its strong operational efficiency and strategic outlook, as evidenced by the recent earnings call and corporate events. However, the financial challenges, particularly with high leverage and net losses, along with bearish technical indicators and unattractive valuation metrics, weigh heavily on the stock's overall attractiveness.

Canacol Energy Business Overview & Revenue Model

Company Description

Canacol Energy Ltd. (CNE) is a leading natural gas exploration and production company headquartered in Canada, with primary operations in Colombia. The company focuses on the exploration, development, and commercialization of natural gas, serving the energy needs of industrial, commercial, and residential customers. Canacol Energy strives to provide reliable and sustainable energy solutions, leveraging its expertise in the hydrocarbon industry to supply the growing energy market in Latin America.

How the Company Makes Money

Canacol Energy generates revenue primarily through the exploration, production, and sale of natural gas. The company's key revenue streams include long-term contracts with industrial and commercial customers, which provide a stable income from the sale of natural gas. Additionally, Canacol Energy invests in infrastructure development to enhance its production capacity and distribution network, ensuring efficient delivery of natural gas to its clients. Strategic partnerships with local and international energy firms also contribute to its earnings, as these collaborations facilitate market expansion and operational efficiency. The company benefits from favorable market conditions in Colombia, where demand for natural gas is rising due to economic development and a push for cleaner energy alternatives.

Canacol Energy Financial Statement Overview

Summary

Overall, Canacol Energy exhibits a solid operational performance with strong margins but faces challenges with high leverage and fluctuating profitability. While the company effectively generates cash from operations, heavy capital expenditures impact its free cash flow.

Income Statement

Canacol Energy shows a moderate revenue growth rate with some fluctuations over the past years. The gross profit margin is strong, indicating effective cost management, while the net profit margin is lower, reflecting potential challenges in controlling expenses or non-operating costs. The EBIT and EBITDA margins are solid, highlighting operational efficiency. However, the recent TTM period shows a decline in net income, which could indicate profitability issues.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, suggesting significant leverage which could be risky in volatile markets. However, the return on equity is reasonable, indicating that the company is generating a fair return on shareholders' investments. The equity ratio is stable, reflecting a balanced use of equity financing despite high debt levels.

Cash Flow

Canacol Energy's cash flow statement indicates fluctuating free cash flow, with the TTM period showing some improvement. The operating cash flow to net income ratio is strong, suggesting effective cash generation from operations. However, the high capital expenditures impact free cash flow, which could constrain financial flexibility.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
315.80M	335.71M	310.54M	278.81M	242.08M
	Gross Profit
275.59M	239.57M	216.59M	212.10M	187.80M
	EBIT
237.96M	128.38M	93.25M	116.11M	96.96M
	EBITDA
183.71M	168.70M	158.30M	172.72M	149.81M
	Net Income Common Stockholders
86.24M	147.27M	15.18M	-4.74M	34.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.42M	60.79M	138.52M	68.57M	41.24M
	Total Assets
1.23B	1.01B	843.76M	749.79M	754.06M
	Total Debt
676.43M	512.18M	512.57M	390.07M	368.68M
	Net Debt
637.01M	453.66M	374.05M	321.80M	327.44M
	Total Liabilities
881.75M	722.91M	658.63M	542.42M	511.32M
	Stockholders Equity
351.67M	291.94M	185.13M	207.37M	242.75M
Cash Flow		Free Cash Flow
-67.13M	93.77M	66.66M	92.33M	42.07M
	Operating Cash Flow
95.34M	185.43M	123.81M	152.32M	108.35M
	Investing Cash Flow
-206.11M	-179.91M	-101.48M	-88.96M	-84.26M
	Financing Cash Flow
83.83M	-80.67M	51.53M	-33.41M	-34.48M

Canacol Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CNE, the sentiment is Negative. The current price of 2.97 is below the 20-day moving average (MA) of 3.12, below the 50-day MA of 3.54, and below the 200-day MA of 3.66, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 33.13 is Neutral, neither overbought nor oversold. The STOCH value of 34.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CNE.

Canacol Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNE	60 Neutral	$101.34M	4.40	-9.73%	6.77%	20.91%	-139.18%
Sector *	56 Neutral	$6.99B	3.76	-4.38%	5.90%	-0.24%	-48.46%
TXP	52 Neutral	$89.86M	7.95	12.87%	―	90.46%	-763.10%
PEA	52 Neutral	C$92.92M	―	-22.67%	―	-46.27%	-452.35%
QEC	50 Neutral	C$113.56M	―	-5.19%	―	-4.36%	69.08%
CDR	45 Neutral	C$112.67M	―	-75.41%	―	9741.12%	69.01%
FO	36 Underperform	£110.91M	―	-6.80%	―	―	13.95%

Canacol Energy Corporate Events

Canacol Energy to Release Q1 2025 Financial Results

Canacol Energy Ltd. announced that it will release its first quarter 2025 financial results on May 8, 2025, after market close, with a subsequent conference call scheduled for May 9, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

Spark’s Take on TSE:CNE Stock

According to Spark, TipRanks’ AI Analyst, TSE:CNE is a Neutral.

Canacol Energy’s overall score reflects its strong operational efficiency and strategic outlook, as evidenced by the recent earnings call and corporate events. However, the financial challenges, particularly with high leverage and net losses, along with bearish technical indicators and unattractive valuation metrics, weigh heavily on the stock’s overall attractiveness.

To see Spark’s full report on TSE:CNE stock, click here.

Canacol Energy Achieves Record EBITDAX Amid Strategic Expansion Plans

Canacol Energy Ltd. reported a record adjusted EBITDAX of $296.1 million for the year ended December 31, 2024, marking a significant increase from the previous year. Despite a decrease in realized natural gas and LNG sales volume, the company saw a rise in operating netback and adjusted funds from operations, driven by higher average sales prices. However, Canacol experienced a net loss due to a non-cash deferred income tax expense. The company plans to focus on maintaining and growing EBITDA, exploring new gas opportunities, and reducing debt in 2025, while preparing to commence operations in Bolivia by 2026.

Canacol Energy Reports Increased 2P Reserves Valuation and Strong Operational Outlook

Canacol Energy Ltd. announced its 2P reserves and deemed volumes, totaling 599 Bcfe with a before-tax NPV-10 value of US$2.6 billion, reflecting a 21% increase from the previous year. The company’s reserve life index stands at 10.2 years, with a reserve replacement ratio of 85% for 2024, indicating robust future production potential and a solid financial position, which could positively impact its market positioning and stakeholder confidence.

Canacol Energy to Release Q4 and Fiscal Year 2024 Financial Results

Canacol Energy Ltd. announced that it will release its fourth quarter and fiscal year 2024 financial results on March 20, 2025, after market closure. A conference call to discuss these results will be held on March 21, 2025. The financial results will be accessible through the company’s Investor Relations website, with a replay of the webcast available until March 28, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting investor decisions and market positioning.

Canacol Energy Announces 2025 Capital and Gas Sales Guidance

Canacol Energy Ltd. has announced its capital and gas sales guidance for 2025, with a capital budget between $143 million and $160 million. The company plans to maintain and grow its reserve base and production from core assets in the Lower Magdalena Valley Basin, while also exploring new opportunities in the Middle Magdalena Valley Basin. The company aims to drill up to 11 exploration and 3 development wells, with significant exploration activities planned to capitalize on strong gas market dynamics. Canacol is also preparing to commence operations in Bolivia in 2026, pending contract ratifications and environmental permits.