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Otto Energy

ASX:OEL
Snowflake Description

Exceptional growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OEL
ASX
A$125M
Market Cap
  1. Home
  2. AU
  3. Energy
Company description

Otto Energy Limited, an oil and gas exploration and production company, explores for, develops, and produces oil and gas primarily in North America. The last earnings update was 53 days ago. More info.


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OEL Share Price and Events
7 Day Returns
1.8%
ASX:OEL
3.4%
AU Oil and Gas
1.7%
AU Market
1 Year Returns
-6.7%
ASX:OEL
5.7%
AU Oil and Gas
5.9%
AU Market
OEL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Otto Energy (OEL) 1.8% -1.8% 30.2% -6.7% 33.3% -35.6%
AU Oil and Gas 3.4% 3.7% 8% 5.7% 35.7% -30.5%
AU Market 1.7% 4% 8.6% 5.9% 21.4% 7.4%
1 Year Return vs Industry and Market
  • OEL underperformed the Oil and Gas industry which returned 5.7% over the past year.
  • OEL underperformed the Market in Australia which returned 5.9% over the past year.
Price Volatility
OEL
Industry
5yr Volatility vs Market

OEL Value

 Is Otto Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Otto Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Otto Energy.

ASX:OEL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:OEL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.959 (1 + (1- 30%) (8.99%))
1.013
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.013 * 5.96%)
8.35%

Discounted Cash Flow Calculation for ASX:OEL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Otto Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:OEL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.35%)
2019 -14.17 Analyst x1 -13.08
2020 7.23 Analyst x1 6.16
2021 32.30 Analyst x1 25.39
2022 58.60 Est @ 81.42% 42.52
2023 92.40 Est @ 57.69% 61.88
2024 130.36 Est @ 41.08% 80.58
2025 168.74 Est @ 29.45% 96.27
2026 204.70 Est @ 21.31% 107.79
2027 236.65 Est @ 15.61% 115.01
2028 264.15 Est @ 11.62% 118.48
Present value of next 10 years cash flows $641.01
ASX:OEL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $264.15 × (1 + 2.31%) ÷ (8.35% – 2.31%)
$4,477.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,477.69 ÷ (1 + 8.35%)10
$2,008.45
ASX:OEL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $641.01 + $2,008.45
$2,649.46
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,649.46 / 2,226.02
$1.19
ASX:OEL Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:OEL)
1.424
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $1.19 x 1.424
A$1.69
Value per share (AUD) From above. A$1.69
Current discount Discount to share price of A$0.06
= -1 x (A$0.06 - A$1.69) / A$1.69
96.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Otto Energy is available for.
Intrinsic value
>50%
Share price is A$0.06 vs Future cash flow value of A$1.69
Current Discount Checks
For Otto Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Otto Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Otto Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Otto Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Otto Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:OEL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.00
ASX:OEL Share Price ** ASX (2019-04-24) in AUD A$0.06
ASX:OEL Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.702 $0.04
Australia Oil and Gas Industry PE Ratio Median Figure of 23 Publicly-Listed Oil and Gas Companies 8.09x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Otto Energy.

ASX:OEL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:OEL Share Price ÷ EPS (both in USD)

= 0.04 ÷ 0.00

-46.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Otto Energy is loss making, we can't compare its value to the AU Oil and Gas industry average.
  • Otto Energy is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does Otto Energy's expected growth come at a high price?
Raw Data
ASX:OEL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -46.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
115%per year
Australia Oil and Gas Industry PEG Ratio Median Figure of 17 Publicly-Listed Oil and Gas Companies 0.24x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Otto Energy, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Otto Energy's assets?
Raw Data
ASX:OEL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $0.02
ASX:OEL Share Price * ASX (2019-04-24) in AUD A$0.06
ASX:OEL Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.702 $0.04
Australia Oil and Gas Industry PB Ratio Median Figure of 145 Publicly-Listed Oil and Gas Companies 1.29x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.66x
ASX:OEL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:OEL Share Price ÷ Book Value per Share (both in USD)

= 0.04 ÷ 0.02

2.42x

* Primary Listing of Otto Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Otto Energy is overvalued based on assets compared to the AU Oil and Gas industry average.
X
Value checks
We assess Otto Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Otto Energy has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

OEL Future Performance

 How is Otto Energy expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
115%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Otto Energy expected to grow at an attractive rate?
  • Otto Energy's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Otto Energy's earnings growth is expected to exceed the Australia market average.
  • Otto Energy's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:OEL Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:OEL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 115%
ASX:OEL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 32.4%
Australia Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 4.2%
Australia Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:OEL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:OEL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 65 55 38 1
2020-06-30 41 35 16 1
2019-06-30 37 27 -2 1
ASX:OEL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 27 -3 -1
2018-09-30 18 -3 -3
2018-06-30 10 -2 -5
2018-03-31 5 -5 -8
2017-12-31 0 -8 -11
2017-09-30 0 -6 -8
2017-06-30 -5 -5
2017-03-31 14 -9 -10
2016-12-31 27 -13 -14
2016-09-30 27 -16 -17
2016-06-30 27 -19 -20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Otto Energy's earnings are expected to grow significantly at over 20% yearly.
  • Otto Energy's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:OEL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Otto Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OEL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.02 0.02 0.02 1.00
2020-06-30 0.01 0.01 0.01 1.00
2019-06-30 0.00 0.00 0.00 1.00
ASX:OEL Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.00
2018-09-30 0.00
2018-06-30 0.00
2018-03-31 -0.01
2017-12-31 -0.01
2017-09-30 -0.01
2017-06-30 0.00
2017-03-31 -0.01
2016-12-31 -0.01
2016-09-30 -0.01
2016-06-30 -0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Otto Energy is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Otto Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Otto Energy has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

OEL Past Performance

  How has Otto Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Otto Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Otto Energy does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Otto Energy's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Otto Energy's 1-year growth to the AU Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Otto Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Otto Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OEL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 26.84 -1.34 23.83
2018-09-30 18.20 -3.27 16.37
2018-06-30 9.55 -5.19 8.90
2018-03-31 4.69 -8.07 8.49
2017-12-31 -0.06 -10.95 8.09
2017-09-30 -0.03 -8.10 6.68
2017-06-30 -5.25 5.28
2017-03-31 13.58 -9.67 10.55
2016-12-31 27.15 -14.09 15.82
2016-09-30 27.12 -17.09 31.51
2016-06-30 27.09 -20.09 47.19
2015-12-31 1.36 -15.73 40.08
2015-09-30 1.36 -16.06 27.43
2015-06-30 1.36 -16.39 14.78
2014-12-31 8.20 -11.89 12.90
2014-09-30 8.20 -21.04 10.70
2014-06-30 8.20 -30.20 8.50
2014-03-31 22.06 -25.24 8.86
2013-12-31 35.92 -20.28 9.21
2013-09-30 48.05 -5.42 8.71
2013-06-30 60.18 9.44 8.20
2013-03-31 47.69 5.64 7.96
2012-12-31 35.21 1.83 7.72
2012-09-30 32.90 8.31 7.40
2012-06-30 30.59 14.79 7.07

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Otto Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Otto Energy used its assets less efficiently than the AU Oil and Gas industry average last year based on Return on Assets.
  • It is difficult to establish if Otto Energy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Otto Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Otto Energy has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

OEL Health

 How is Otto Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Otto Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Otto Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Otto Energy's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Otto Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Otto Energy Company Filings, last reported 3 months ago.

ASX:OEL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 30.44 7.87 10.33
2018-09-30 30.44 7.87 10.33
2018-06-30 21.03 7.54 5.95
2018-03-31 21.03 7.54 5.95
2017-12-31 17.80 10.06 15.02
2017-09-30 17.80 10.06 15.02
2017-06-30 17.31 0.00 12.20
2017-03-31 17.31 0.00 12.20
2016-12-31 19.94 0.00 16.95
2016-09-30 19.94 0.00 16.95
2016-06-30 22.48 0.00 20.31
2015-12-31 33.81 0.00 33.57
2015-09-30 33.81 0.00 33.57
2015-06-30 41.52 0.00 41.21
2014-12-31 108.16 0.00 20.48
2014-09-30 108.16 0.00 20.48
2014-06-30 91.17 0.00 7.74
2014-03-31 91.17 0.00 7.74
2013-12-31 77.01 33.76 16.07
2013-09-30 77.01 33.76 16.07
2013-06-30 91.00 14.14 31.85
2013-03-31 91.00 14.14 31.85
2012-12-31 84.82 0.00 19.04
2012-09-30 84.82 0.00 19.04
2012-06-30 82.51 0.00 28.33
  • Otto Energy's level of debt (25.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (43.3% vs 25.9% today).
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.

  • Otto Energy has less than a year of cash runway based on current free cash flow.
  • Otto Energy has less than a year of cash runway if free cash flow continues to grow at historical rates of 12.8% each year.
X
Financial health checks
We assess Otto Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Otto Energy has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

OEL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Otto Energy dividends. Estimated to be 0% next year.
If you bought A$2,000 of Otto Energy shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Otto Energy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Otto Energy's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:OEL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Australia Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 4.5%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:OEL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.00 1.00
2020-06-30 0.00 1.00
2019-06-30 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Otto Energy has not reported any payouts.
  • Unable to verify if Otto Energy's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Otto Energy's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Otto Energy has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Otto Energy's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Otto Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Otto Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Otto Energy has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

OEL Management

 What is the CEO of Otto Energy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Matthew Allen
COMPENSATION $549,968
TENURE AS CEO 5.2 years
CEO Bio

Mr. Matthew Allen, B.Bus, CA, F Fin and MAICD has been the Chief Executive Officer of Otto Energy Limited since February 24, 2014 and as its Managing Director since June 24, 2015. Mr. Allen served as the Chief Financial Officer and Company Secretary at Otto Energy Limited since November 16, 2009 and July 04, 2010 respectively. Mr. Allen served as the Acting Chief Executive Officer of Otto Energy Limited until November 1, 2011 and also served as its February 2014. Mr. Allen’s experience lies in the operation and management of oil & gas companies with particular focus on strategic, commercial and financial aspects of the business. Mr. Allen previously spent 8 years with Woodside Energy working with many of Woodside’s assets and has had global upstream oil and gas industry in Asia, Africa, Australia and the Middle East. He serves as a Director of Otto Energy Limited.

CEO Compensation
  • Matthew's compensation has been consistent with company performance over the past year.
  • Matthew's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Otto Energy management team in years:

2.2
Average Tenure
  • The tenure for the Otto Energy management team is about average.
Management Team

Matthew Allen

TITLE
MD, CEO & Director
COMPENSATION
$550K
TENURE
5.2 yrs

David Rich

TITLE
CFO & Company Secretary
COMPENSATION
$393K
TENURE
2.2 yrs

Will Armstrong

TITLE
Vice President of Exploration & New Ventures
TENURE
0.8 yrs

Mark Sunwall

TITLE
Senior Exploration Consultant
TENURE
3 yrs

Kevin Small

TITLE
Non-Executive Director & Senior Exploration Consultant
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Otto Energy board of directors in years:

3.4
Average Tenure
61
Average Age
  • The tenure for the Otto Energy board of directors is about average.
Board of Directors

John Jetter

TITLE
Non-Executive Chairman
COMPENSATION
$133K
AGE
63
TENURE
3.4 yrs

Matthew Allen

TITLE
MD, CEO & Director
COMPENSATION
$550K

Kevin Small

TITLE
Non-Executive Director & Senior Exploration Consultant
TENURE
0.3 yrs

Ian Macliver

TITLE
Independent Non-Executive Director
COMPENSATION
$91K
AGE
58
TENURE
15.3 yrs

Ian Boserio

TITLE
Independent Non-Executive Director
COMPENSATION
$80K
TENURE
8.6 yrs

Paul Senycia

TITLE
Non Executive Director
COMPENSATION
$467K
AGE
61
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Otto Energy insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
15. Apr 19 Buy Kevin Small Individual 11. Apr 19 12. Apr 19 2,325,378 A$0.06 A$129,990
11. Apr 19 Sell Perennial Value Management Limited Company 07. Mar 19 12. Mar 19 -6,569,338 A$0.07 A$-440,807
11. Apr 19 Buy Perennial Value Management Limited Company 27. Feb 19 09. Apr 19 110,436,441 A$0.06 A$5,965,069
08. Apr 19 Buy Kevin Small Individual 02. Apr 19 08. Apr 19 5,674,622 A$0.05 A$310,969
28. Feb 19 Sell Perennial Value Management Limited Company 14. Aug 18 07. Feb 19 -12,680,038 A$0.06 A$-726,711
28. Feb 19 Buy Perennial Value Management Limited Company 28. Sep 18 26. Feb 19 47,854,421 A$0.06 A$2,827,356
18. Feb 19 Buy Kevin Small Individual 12. Feb 19 12. Feb 19 290,000 A$0.06 A$17,690
04. Feb 19 Buy Colonial First State Asset Management (Australia) Limited Company 08. Oct 18 04. Feb 19 47,338,907 A$0.07 A$2,868,978
30. Aug 18 Buy Matthew Allen Individual 29. Aug 18 29. Aug 18 766,667 A$0.06 A$45,233
30. Aug 18 Buy Ian Boserio Individual 29. Aug 18 29. Aug 18 230,397 A$0.06 A$13,593
30. Aug 18 Buy Paul Senycia Individual 29. Aug 18 29. Aug 18 361,310 A$0.06 A$21,317
30. Aug 18 Buy John Jetter Individual 29. Aug 18 29. Aug 18 2,160,702 A$0.06 A$127,481
30. Aug 18 Buy Ian Macliver Individual 29. Aug 18 29. Aug 18 600,763 A$0.06 A$35,445
17. Aug 18 Sell Perennial Value Management Limited Company 17. Jul 18 09. Aug 18 -41,917,275 A$0.07 A$-2,987,875
17. Aug 18 Buy Perennial Value Management Limited Company 20. Jun 18 10. Aug 18 40,072,756 A$0.07 A$402,355
15. Aug 18 Buy Ian Boserio Individual 09. Aug 18 14. Aug 18 500,000 A$0.07 A$36,450
21. Jun 18 Sell Perennial Value Management Limited Company 14. Jun 18 14. Jun 18 -607,424 A$0.06 A$-38,183
21. Jun 18 Buy Perennial Value Management Limited Company 22. May 18 19. Jun 18 18,996,452 A$0.07 A$1,284,462
08. Jun 18 Sell Matthew Allen Individual 07. Jun 18 07. Jun 18 -143,000 A$0.07 A$-9,295
23. May 18 Sell Perennial Value Management Limited Company 08. May 18 08. May 18 -7,333,135 A$0.07 A$-482,525
23. May 18 Buy Perennial Value Management Limited Company 29. Mar 18 21. May 18 22,715,581 A$0.07 A$1,496,759
08. May 18 Buy Ian Boserio Individual 02. May 18 07. May 18 445,000 A$0.06 A$26,995
X
Management checks
We assess Otto Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Otto Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

OEL News

Simply Wall St News

Should Otto Energy (ASX:OEL) Be Disappointed With Their 63% Profit?

Otto Energy Limited (ASX:OEL) shareholders might be concerned after seeing the share price drop 11% in the last month. … Otto Energy isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … In the last 3 years Otto Energy saw its revenue shrink by 5.9% per year.

Simply Wall St -

Could The Otto Energy Limited (ASX:OEL) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Otto Energy Limited (ASX:OEL) have power over the company. … Otto Energy is a smaller company with a market capitalization of AU$124m, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Otto Energy

Simply Wall St -

Otto Energy Limited (ASX:OEL): Is Breakeven Near?

Otto Energy Limited, an oil and gas exploration and production company, explores for, develops, and produces oil and gas primarily in North America. … The AU$75m market-cap company announced a latest loss of -US$5.2m on 30 June 2018 for its most recent financial year result. … In this article, I will touch on the expectations for OEL’s growth and when analysts expect the company to become profitable

Simply Wall St -

Read This Before Selling Otto Energy Limited (ASX:OEL) Shares

We often see insiders buying up shares in companies that perform well over the long term. … So before you buy or sell Otto Energy Limited (ASX:OEL), you may well want to know whether insiders have been buying or selling. … It's very possible they regret the purchase, but it's more likely they are bullish about the company.

Simply Wall St -

What Did Otto Energy Limited's (ASX:OEL) CEO Take Home Last Year?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Matthew Allen's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Otto Energy Limited has a market cap of AU$94m, and is paying total annual CEO compensation of US$550k

Simply Wall St -

Is Otto Energy Limited's (ASX:OEL) Balance Sheet Strong Enough To Weather A Storm?

While small-cap stocks, such as Otto Energy Limited (ASX:OEL) with its market cap of AU$95m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Has Otto Energy Limited (ASX:OEL) Improved Earnings Growth In Recent Times?

When Otto Energy Limited (ASX:OEL) announced its most recent earnings (31 December 2017), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Did OEL beat its long-term earnings growth trend and its industry … OEL is loss-making, with the most recent trailing twelve-month earnings of -AU$10.95m (from 31 December 2017), which compared to last year has become

Simply Wall St -

Who Owns Otto Energy Limited (ASX:OEL)?

This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Private Company Ownership Potential investors in OEL should also look at another important group of investors: private companies, with a stake of 21.48%, who are primarily invested because of strategic and capital gain interests. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.Next Steps: Institutional ownership in OEL is not at a level that would concern investors.

Simply Wall St -

What Are The Drivers Of Otto Energy Limited's (ASX:OEL) Risks?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … A market capitalisation of AU$90.32M puts OEL in the category of small-cap stocks, which tends to possess higher beta than larger companies. … As a result, this aspect of OEL indicates a higher beta than a similar size company with a lower portion of fixed assets on their balance sheet.

Simply Wall St -

Does Otto Energy Limited's (ASX:OEL) Earnings Growth Make It An Outperformer?

Assessing Otto Energy Limited's (ASX:OEL) past track record of performance is a useful exercise for investors. … See our latest analysis for Otto Energy Commentary On OEL's Past Performance To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … For Otto Energy, its most recent earnings (trailing twelve month) is -US$10.95M, which compared to the prior year's level, has become less negative.

Simply Wall St -

OEL Company Info

Description

Otto Energy Limited, an oil and gas exploration and production company, explores for, develops, and produces oil and gas primarily in North America. The company’s principal projects include its 50% interest in the South Marsh Island 71 project, which covers an area of 12.16 square kilometers; 45% interest in the Bivouac Peak project covering an area of approximately 11.04 square kilometers; and 50 % interest in the VR 232 project covering an area of 18.31 square kilometers. Its principal projects also comprise its 22.5% working interest in 4 leases totaling approximately 22,710 acres in the onshore Alaska North slope–Western blocks; and 8%-10.8% working interest in 90 leases covering 287,425 gross acres in the onshore Alaska North slope–Central blocks. The company was formerly known as Ottoman Energy Limited and changed its name to Otto Energy Limited in August 2006. Otto Energy Limited was founded in 2004 and is headquartered in West Perth, Australia.

Details
Name: Otto Energy Limited
OEL
Exchange: ASX
Founded: 2004
A$124,657,204
2,226,021,504
Website: http://www.ottoenergy.com
Address: Otto Energy Limited
32 Delhi Street,
West Perth,
Western Australia, 6005,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX OEL Ordinary Shares Australian Securities Exchange AU AUD 22. Dec 2004
OTCPK OTTE.F Ordinary Shares Pink Sheets LLC US USD 22. Dec 2004
DB O1E Ordinary Shares Deutsche Boerse AG DE EUR 22. Dec 2004
BST O1E Ordinary Shares Boerse-Stuttgart DE EUR 22. Dec 2004
CHIA OEL Ordinary Shares Chi-X Australia AU AUD 22. Dec 2004
Number of employees
Current staff
Staff numbers
8
Otto Energy employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 10:30
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/24
Last earnings filing: 2019/03/03
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.