Executive Summary
88 Energy Limited engages in the exploration of oil and gas properties in the United States.
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 3 more risks
Snowflake Analysis
Imperfect balance sheet with weak fundamentals.
Similar Companies
Share Price & News
How has 88 Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 88E's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
31.3%
88E
12.5%
AU Oil and Gas
5.0%
AU Market
1 Year Return
50.0%
88E
-41.4%
AU Oil and Gas
-19.2%
AU Market
Return vs Industry: 88E exceeded the Australian Oil and Gas industry which returned -46.9% over the past year.
Return vs Market: 88E exceeded the Australian Market which returned -19.4% over the past year.
Shareholder returns
| 88E | Industry | Market | |
|---|---|---|---|
| 7 Day | 31.3% | 12.5% | 5.0% |
| 30 Day | -4.5% | -29.2% | -20.3% |
| 90 Day | -16.0% | -43.4% | -25.8% |
| 1 Year | 50.0%50.0% | -39.0%-41.4% | -15.6%-19.2% |
| 3 Year | -52.0%-52.3% | -33.5%-41.5% | -3.6%-16.8% |
| 5 Year | 83.8%82.6% | -35.5%-47.0% | 6.6%-17.5% |
Price Volatility Vs. Market
How volatile is 88 Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Is 88 Energy Limited (ASX:88E) Excessively Paying Its CEO?3 months ago | Simply Wall St
88 Energy (ASX:88E) Shareholders Have Enjoyed An Impressive 108% Share Price Gain4 months ago | Simply Wall St
Is 88 Energy Limited (ASX:88E) Overpaying Its CEO?Valuation
Is 88 Energy undervalued compared to its fair value and its price relative to the market?
2.23x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate 88E's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate 88E's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: 88E is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.
PE vs Market: 88E is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 88E's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 88E is overvalued based on its PB Ratio (2x) compared to the AU Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is 88 Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
14.8%
Forecasted Energy industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as 88 Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Take a look at our analysis of 88E’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- 88 Energy competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Energy industry.
Past Performance
How has 88 Energy performed over the past 5 years?
-6.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 88E is currently unprofitable.
Growing Profit Margin: 88E is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 88E is unprofitable, and losses have increased over the past 5 years at a rate of -6.1% per year.
Accelerating Growth: Unable to compare 88E's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 88E is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16%).
Return on Equity
High ROE: 88E has a negative Return on Equity (-56.94%), as it is currently unprofitable.
Next Steps
Financial Health
How is 88 Energy's financial position?
Financial Position Analysis
Short Term Liabilities: 88E's short term assets (A$17.0M) exceed its short term liabilities (A$6.3M).
Long Term Liabilities: 88E's short term assets (A$17.0M) do not cover its long term liabilities (A$22.7M).
Debt to Equity History and Analysis
Debt Level: 88E's debt to equity ratio (35.1%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if 88E's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Inventory Level: 88E has a high level of physical assets or inventory.
Debt Coverage by Assets: 88E's debt is not covered by short term assets (assets are 0.8x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: 88E has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: 88E has less than a year of cash runway if free cash flow continues to reduce at historical rates of -21.4% each year
Next Steps
Dividend
What is 88 Energy's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 88E's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 88E's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 88E's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 88E's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 88E's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.6yrs
Average management tenure
CEO
Dave Wall
6s
Tenure
AU$659,129
Compensation
Mr. David James Wall, also known as Dave, has been a Managing Director of 88 Energy Limited (formerly Tangiers Petroleum Limited) since April 15, 2014. Prior to this, from October 2012 to April 2014, Mr. W ...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD404.35K) is above average for companies of similar size in the Australian market ($USD246.06K).
Compensation vs Earnings: Dave's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | 6yrs | AU$659.13k | 0.55% A$827.5k | |
| CFO & Joint Company Secretary | 3.25yrs | AU$453.77k | no data | |
| Senior Geologist & Exploration Manager | no data | no data | no data | |
| Joint Company Secretary | 5.58yrs | no data | no data |
5.6yrs
Average Tenure
Experienced Management: 88E's management team is seasoned and experienced (5.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | 6yrs | AU$659.13k | 0.55% A$827.5k | |
| Non-Executive Chairman | 6yrs | AU$153.30k | 0.30% A$445.0k | |
| Non-Executive Director | 6yrs | AU$65.00k | 0.16% A$234.0k |
6.0yrs
Average Tenure
Experienced Board: 88E's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.
Top Shareholders
Company Information
88 Energy Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: 88 Energy Limited
- Ticker: 88E
- Exchange: ASX
- Founded: 1996
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: AU$149.302m
- Shares outstanding: 7.11b
- Website: https://www.88energy.com
Location
- 88 Energy Limited
- 5 Ord Street
- Level 2
- West Perth
- Western Australia
- 6005
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| POQ | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 2000 |
| 88E | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 2000 |
| 88E | AIM (London Stock Exchange AIM Market) | Yes | Ordinary Shares | GB | GBP | Jan 2000 |
| 88E | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 2000 |
| POQ | BRSE (Berne Stock Exchange) | Yes | Ordinary Shares | CH | CHF | Jan 2000 |
Biography
88 Energy Limited engages in the exploration of oil and gas properties in the United States. The company holds a 64% working interest in the Icewine project, which covers an area of approximately 486,000 acres located in North Slope of Alaska, the United States. It also holds a 100% working interest in the Yukon Gold leases covering an area of approximately 15,235 acres located on the eastern border of the Central North Slope of Alaska. In addition, it holds rights to 36% working interest in Western Blocks project, which covers an area of approximately 22,711 acres located in Alaska. The company was formerly known as Tangiers Petroleum Limited and changed its name to 88 Energy Limited in February 2015. 88 Energy Limited was incorporated in 1996 and is based in West Perth, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 10:35 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.