Australian (ASX) Energy Sector Analysis

Sector Valuation and Performance

Has the Australian Energy Sector valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE
Tue, 30 Nov 2021	AU$94.4b	AU$63.0b	-AU$399,595,395.00	33.5x
Thu, 28 Oct 2021	AU$104.9b	AU$62.4b	-AU$438,707,365.00	36.1x
Sat, 25 Sep 2021	AU$94.3b	AU$62.4b	AU$303.6m	30x
Mon, 23 Aug 2021	AU$80.8b	AU$61.6b	-AU$198,560,481.73	26.2x
Sat, 10 Jul 2021	AU$87.0b	AU$61.6b	-AU$199,465,357.73	31.5x
Fri, 02 Apr 2021	AU$86.8b	AU$60.5b	-AU$3,873,887,014.56	15.1x
Mon, 04 Jan 2021	AU$83.6b	AU$59.6b	-AU$7,596,420,732.55	30.5x
Thu, 08 Oct 2020	AU$65.6b	AU$67.1b	-AU$6,502,193,963.06	30.3x
Wed, 01 Jul 2020	AU$71.7b	AU$74.9b	-AU$5,750,314,448.63	15.8x
Sat, 04 Apr 2020	AU$55.8b	AU$78.6b	-AU$1,132,562,369.46	9.3x
Tue, 07 Jan 2020	AU$106.1b	AU$78.2b	AU$4.0b	12.1x
Mon, 30 Sep 2019	AU$101.1b	AU$76.8b	AU$5.6b	14.4x
Thu, 04 Jul 2019	AU$103.4b	AU$74.1b	AU$6.6b	10.2x
Sun, 07 Apr 2019	AU$104.8b	AU$72.7b	AU$7.0b	9.7x
Wed, 09 Jan 2019	AU$94.0b	AU$71.5b	AU$6.7b	7.9x

PE Ratio

13.3x

Fri, 07 Dec 2018

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 33.0x which is higher than its 3-year average PE of 18.9x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: Total earnings for the Energy industry have declined over the last three years, with the industry now making a loss overall. Revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Australian Energy sector?


Energy Services	-4.28%
Oil and Gas	-5.51%

Industry PE: Investors are most optimistic about the Energy Services industry which is trading above its 3-year average PE ratio of 38.2x. This is likely because analysts are expecting annual earnings growth of 25%, which is higher than its past year's earnings decline of 50% per year. Meanwhile, investors are most pessimistic about the Oil and Gas industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 16.3x.

Forecasted Growth: Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 25% over the next 5 years. This is better than its past earnings decline of 50% per year. Meanwhile, the Oil and Gas industry is expected to see its earnings grow by 13% per year over the next few years.

Company	7D	1Y	Valuation
TBN Tamboran Resources	1.3%+AU$41.1m	n/a	n/a
WEC White Energy	15.4%+AU$15.5m	20.0%	n/a
BRU Buru Energy	15.6%+AU$13.5m	90.7%	n/a
TPD Talon Energy	25.0%+AU$13.5m	150.0%	n/a
DEV DevEx Resources	6.1%+AU$12.6m	122.2%	n/a

Company

Valuation

TBN Tamboran Resources

1.3%+AU$41.1m

n/a

WEC White Energy

15.4%+AU$15.5m

20.0%

n/a

BRU Buru Energy

15.6%+AU$13.5m

90.7%

n/a

TPD Talon Energy

25.0%+AU$13.5m

150.0%

n/a

DEV DevEx Resources

6.1%+AU$12.6m

122.2%

n/a

Adx Energy Ltd Obtains the Final Environmental Approval Required to Commence Well Site Construction for the Anshof Well Location in the ADX-AT-II exploration License in Upper Austria

ADX Energy Ltd. announced that it has obtained the final environmental approval required to commence well site construction for the Anshof well location in the ADX-AT-II exploration license in Upper Austria. Well site construction for up to three wells is expected to be completed by mid-December enabling rig mobilisation and the expected spud of the Anshof exploration well to be drilled from the Anshof-3 Well surface location during the third week of December 2021. The Anshof-3 Well surface location is outside an area requiring approval by the Forestry Authority. Drilling from this location has enabled the commencement of well site construction to meet a rig slot available in December 2021. ADX expects approval by the Forestry Authority for two additional well locations in about 2 weeks from today. Due to the high chance of success for the Anshof-3 Well, the pre investment in further well locations that enable follow up appraisal and development drilling makes good economic sense because it will facilitate field development fast tracking. Approvals have been received from the regulatory authority for up to three drilling locations from the Anshof well site. The Anshof-3 Well location is approximately 50 metres from an oil and gas pipeline bundle which can be accessed to process and export crude. On the 22nd of November 2020 ADX announced the agreement with RAG Exploration & Production GmbH (RAG E&P) of commercial terms for the access of future oil and gas production from ADX Upper Austria exploration and appraisal licenses in Upper Austria which surround producing fields and infrastructure operated by RAG E&P. The agreement enables the reduction of capital expenditures and the time taken from drilling to commercial production due to the ability to tie into RAG E&P's existing hydrocarbon gathering, processing and storage facilities which are connected to Austria's oil and gas infrastructure network. Drilling is expected to spud prior to Christmas following mobilisation during the third week of December 2021. ADX has finalised the key materials and services required for the well including a multi well call out contract with RED Drilling & Services GmbH (RED). The agreement with RED provides contractual terms for multiple wells subject to rig availability. The first rig slot has been secured for the spud of the Anshof-3 well in December 2021 using the RED E-200 drilling rig.

Australian (ASX) Energy Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

BPT

Non Executive Director recently bought AU$120k worth of stock

BRU

Returns On Capital Are Showing Encouraging Signs At Buru Energy (ASX:BRU)

TBN

Tamboran Resources Limited Provides Update on Drill Program in EP 161

OSH

Allan Gray Opposes Merger Deal Between Oil Search and Santos.

ADX

Adx Energy Ltd Obtains the Final Environmental Approval Required to Commence Well Site Construction for the Anshof Well Location in the ADX-AT-II exploration License in Upper Austria

WPL

Indigenous Group Reportedly Seeks Stake in Woodside's Scarborough, Pluto LNG Project

WGO

No longer forecast to breakeven

DEV

Non-Executive Chairman exercised options to buy AU$416k worth of stock.

PDN

Is Paladin Energy (ASX:PDN) Using Too Much Debt?

SOL

Upcoming dividend of AU$0.36 per share

STO

Is There An Opportunity With Santos Limited's (ASX:STO) 50% Undervaluation?

YAL

Is Yancoal Australia (ASX:YAL) A Risky Investment?

LCK

Companies Like Leigh Creek Energy (ASX:LCK) Are In A Position To Invest In Growth

TPD

We Think Talon Energy (ASX:TPD) Can Afford To Drive Business Growth

ALD

Upcoming dividend of AU$0.52 per share

WEC

White Energy Company Limited Announces Board and Committee Changes