ASX:E2E

Stock Analysis Report

Executive Summary

Eon NRG Limited, an onshore oil and gas exploration and production company, explores for and produces oil and gas in North America.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Eon NRG's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: E2E's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

E2E

4.4%

AU Oil and Gas

0.1%

AU Market


1 Year Return

-83.3%

E2E

-48.2%

AU Oil and Gas

-22.8%

AU Market

Return vs Industry: E2E underperformed the Australian Oil and Gas industry which returned -48.2% over the past year.

Return vs Market: E2E underperformed the Australian Market which returned -22.8% over the past year.


Shareholder returns

E2EIndustryMarket
7 Day0%4.4%0.1%
30 Day-66.7%-40.3%-28.8%
90 Day-80.0%-49.4%-30.1%
1 Year-83.3%-83.3%-46.2%-48.2%-19.4%-22.8%
3 Year-95.6%-97.1%-40.3%-47.6%-9.5%-21.7%
5 Year-93.6%-95.8%-40.0%-50.7%2.1%-20.8%

Price Volatility Vs. Market

How volatile is Eon NRG's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eon NRG undervalued compared to its fair value and its price relative to the market?

0.12x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate E2E's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate E2E's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: E2E is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: E2E 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 E2E's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: E2E is good value based on its PB Ratio (0.1x) compared to the AU Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Eon NRG forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.4%

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 Eon NRG 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

Past Performance

How has Eon NRG performed over the past 5 years?

55.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E2E is currently unprofitable.

Growing Profit Margin: E2E is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: E2E is unprofitable, but has reduced losses over the past 5 years at a rate of 55.5% per year.

Accelerating Growth: Unable to compare E2E's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: E2E is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16%).


Return on Equity

High ROE: E2E has a negative Return on Equity (-40.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Eon NRG's financial position?


Financial Position Analysis

Short Term Liabilities: E2E's short term assets ($2.4M) do not cover its short term liabilities ($8.6M).

Long Term Liabilities: E2E's short term assets ($2.4M) do not cover its long term liabilities ($2.9M).


Debt to Equity History and Analysis

Debt Level: E2E's debt to equity ratio (159.7%) is considered high.

Reducing Debt: E2E's debt to equity ratio has increased from 46.1% to 159.7% over the past 5 years.


Balance Sheet

Inventory Level: E2E has a high level of physical assets or inventory.

Debt Coverage by Assets: E2E's debt is not covered by short term assets (assets are 0.4x 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: E2E has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: E2E has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of -60.6% each year.


Next Steps

Dividend

What is Eon NRG's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate E2E's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate E2E'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 E2E's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if E2E'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 E2E'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?

5.4yrs

Average management tenure


CEO

John Whisler (47yo)

5.42s

Tenure

US$384,193

Compensation

Mr. John Whisler, B.Sc., has been the Managing Director of Eon NRG Ltd (Formerly Incremental Oil and Gas Limited) since October 14, 2014. Mr. Whisler served as President of Incremental Oil & Gas USA Holdin ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD384.19K) is above average for companies of similar size in the Australian market ($USD242.11K).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
John Whisler
MD & Executive Director5.42yrsUS$384.19k1.28% $14.8k
Simon Charles Adams
CFO, Company Secretary & Executive Director0.75yrUS$150.00k0.015% $168.1
Gerard McGann
Technical Director & Director10.67yrsUS$48.35k2.72% $31.4k

5.4yrs

Average Tenure

54yo

Average Age

Experienced Management: E2E's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Whisler
MD & Executive Director5.42yrsUS$384.19k1.28% $14.8k
Simon Charles Adams
CFO, Company Secretary & Executive Director0.75yrUS$150.00k0.015% $168.1
Gerard McGann
Technical Director & Director10.67yrsUS$48.35k2.72% $31.4k
Matthew McCann
Chairman0.83yrUS$45.24k1.37% $15.8k

3.3yrs

Average Tenure

52yo

Average Age

Experienced Board: E2E's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 74%.


Top Shareholders

Company Information

Eon NRG Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eon NRG Limited
  • Ticker: E2E
  • Exchange: ASX
  • Founded: 2009
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$1.155m
  • Shares outstanding: 769.89m
  • Website: https://www.eonnrg.com

Number of Employees


Location

  • Eon NRG Limited
  • 475 17th Street
  • Suite 1000
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
E2EASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2011
ICRM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2011
E2ECHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2011

Biography

Eon NRG Limited, an onshore oil and gas exploration and production company, explores for and produces oil and gas in North America. It operates oilfields in Wyoming and California. The company has interest in approximately 15,000 acres of leases in the Powder River Basin, Wyoming. It owns interest in the Borie oilfield covering an area of 2,850 net acres located to the west of Cheyenne in the DJ Basin, Wyoming; and a 100% working interest in the Silvertip field totaling an area of 4,437 net acres located in the Bighorn Basin, Wyoming. The company also holds a 100% interests in the Sheep Springs field covering an area of 160 net acres located in the San Joaquin Basin; and the Round Mountain field totaling an area of 320 net acres located in the San Joaquin Basin. In addition, it discovers, explores for, and develops battery minerals. The company was formerly known as Incremental Oil and Gas Limited and changed its name to Eon NRG Limited on February 14, 2018. Eon NRG Limited was founded in 2009 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:41
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.