ASX:EEG

Stock Analysis Report

Empire Energy Group

Executive Summary

Empire Energy Group Limited, together its subsidiaries, engages in the acquisition, development, production, exploration, and sale of oil and natural gas in the United States.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Empire Energy Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

32.1%

EEG

9.5%

AU Oil and Gas

5.3%

AU Market


1 Year Return

-7.5%

EEG

-43.3%

AU Oil and Gas

-17.6%

AU Market

Return vs Industry: EEG exceeded the Australian Oil and Gas industry which returned -46.9% over the past year.

Return vs Market: EEG exceeded the Australian Market which returned -19.4% over the past year.


Shareholder returns

EEGIndustryMarket
7 Day32.1%9.5%5.3%
30 Day-37.3%-31.6%-18.2%
90 Day-59.8%-43.0%-22.6%
1 Year-7.5%-7.5%-41.0%-43.3%-13.9%-17.6%
3 Year131.3%131.3%-35.5%-43.5%-0.4%-14.1%
5 Year-14.0%-31.5%-36.1%-47.5%10.7%-14.3%

Price Volatility Vs. Market

How volatile is Empire Energy Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Empire Energy Group undervalued compared to its fair value and its price relative to the market?

1.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EEG is overvalued based on its PB Ratio (1.9x) compared to the AU Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Empire Energy Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

66.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EEG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: EEG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: EEG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: EEG's revenue is expected to decline over the next 3 years (-9.5% per year).

High Growth Revenue: EEG's revenue is forecast to decline over the next 3 years (-9.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EEG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Empire Energy Group performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EEG is currently unprofitable.

Growing Profit Margin: EEG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EEG is unprofitable, and losses have increased over the past 5 years at a rate of -10.5% per year.

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

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


Return on Equity

High ROE: EEG has a negative Return on Equity (-87.61%), as it is currently unprofitable.


Next Steps

Financial Health

How is Empire Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: EEG's short term assets ($12.5M) exceed its short term liabilities ($10.1M).

Long Term Liabilities: EEG's short term assets ($12.5M) do not cover its long term liabilities ($15.9M).


Debt to Equity History and Analysis

Debt Level: EEG's debt to equity ratio (47.4%) is considered high.

Reducing Debt: EEG's debt to equity ratio has reduced from 92.6% to 47.4% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: EEG's debt is covered by short term assets (assets are 1.9x 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: EEG has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: EEG has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -40.3% each year


Next Steps

Dividend

What is Empire Energy Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

1.4yrs

Average management tenure


CEO

Alex Underwood (36yo)

1.67s

Tenure

US$267,228

Compensation

Mr. Alexander Underwood, also known as Alex, has been Chief Executive Officer and Managing Director of Empire Energy Group Limited since August 2018 and serves as its Director. He joined the company in Feb ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD267.23K) is about average for companies of similar size in the Australian market ($USD246.06K).

Compensation vs Earnings: Insufficient data to compare Alex's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Underwood
CEO, MD & Director1.67yrsUS$267.23k0.74% $351.0k
Kylie Arizabaleta
Financial Controller8.08yrsno datano data
Rachel Ryan
General Manager of Operationsno dataUS$45.66kno data
David Evans
Chief Operating Officer0.50yrno datano data
Julian Rockett
Company Secretary1.08yrsno datano data

1.4yrs

Average Tenure

Experienced Management: EEG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alexander Underwood
CEO, MD & Director1.67yrsUS$267.23k0.74% $351.0k
Paul Espie
Chairman1.25yrsUS$2.17k1.84% $873.0k
John Warburton
Non-Executive Director1.17yrsUS$23.39k0.074% $34.9k
John Gerahty
Non-Executive Director1.42yrsUS$2.17k4.65% $2.2m

1.3yrs

Average Tenure

68yo

Average Age

Experienced Board: EEG's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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 78.6%.


Top Shareholders

Company Information

Empire Energy Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Empire Energy Group Limited
  • Ticker: EEG
  • Exchange: ASX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$47.392m
  • Shares outstanding: 263.29m
  • Website: https://empireenergygroup.net/

Location

  • Empire Energy Group Limited
  • 20 Bond Street
  • Level 19
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EEGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1993
EEGU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1993
EEGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1993

Biography

Empire Energy Group Limited, together its subsidiaries, engages in the acquisition, development, production, exploration, and sale of oil and natural gas in the United States. It operates through Oil and Gas Operations and Investments segments. The company holds two exploration licenses and five license applications that covers an area of 14.6 million acres located in the McArthur Basin of Northern Territory, Australia. It sells oil and gas products primarily to owners of domestic pipelines and refiners located in Pennsylvania, New York, and Kansas. The company was formerly known as Imperial Corporation Limited and changed its name to Empire Energy Group Limited in March 2011. Empire Energy Group Limited is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 10:56
End of Day Share Price2020/04/01 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.