TSXV:HPL

Stock Analysis Report

Horizon Petroleum

Executive Summary

Horizon Petroleum Ltd. engages in the acquisition, exploration, and development of oil and gas properties internationally.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Horizon Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HPL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

HPL

0.2%

CA Oil and Gas

0.3%

CA Market


1 Year Return

14.3%

HPL

-0.1%

CA Oil and Gas

5.5%

CA Market

Return vs Industry: HPL exceeded the Canadian Oil and Gas industry which returned 0.2% over the past year.

Return vs Market: HPL exceeded the Canadian Market which returned 5.8% over the past year.


Shareholder returns

HPLIndustryMarket
7 Day0%0.2%0.3%
30 Day0%-2.3%0.5%
90 Dayn/a4.0%3.5%
1 Year14.3%14.3%4.2%-0.1%8.8%5.5%
3 Year-88.9%-88.9%-7.5%-17.3%14.8%4.5%
5 Year-81.0%-81.0%-9.3%-23.8%34.1%14.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Horizon Petroleum undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Horizon Petroleum is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Horizon Petroleum has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of HPL’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.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Horizon Petroleum regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

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

-0.2%

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 Horizon Petroleum 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 Horizon Petroleum performed over the past 5 years?

-17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HPL is currently unprofitable.

Growing Profit Margin: HPL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HPL is unprofitable, and losses have increased over the past 5 years at a rate of -17.7% per year.

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

Earnings vs Industry: HPL is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (6%).


Return on Equity

High ROE: HPL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Horizon Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: HPL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HPL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HPL is debt free.

Reducing Debt: HPL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: HPL has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HPL's debt is covered by short term assets.


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: HPL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: HPL has less than a year of cash runway if free cash flow continues to reduce at historical rates of -10.4% each year


Next Steps

Dividend

What is Horizon Petroleum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if HPL'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 HPL's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average board tenure


CEO

David Winter (62yo)

4.3yrs

Tenure

CA$120,000

Compensation

Dr. David Anthony Winter, BSc, MSc, PhD, is Co-Founder of Canacol Energy Ltd. Dr. Winter founded Miramar Hydrocarbons Ltd and serves as its Chief Executive Officer and President. Dr. Winter serves as the C ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD90.55K) is below average for companies of similar size in the Canadian market ($USD155.16K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
David Winter
President4.3yrsCA$120.00k3.74% CA$89.5k
Yogeshwar Sharma
Non-Executive Chairman6.6yrsCA$36.00k2.1% CA$50.3k
Charle Gamba
Independent Director5.8yrsCA$24.00k1.38% CA$33.1k
Henry Wilson
Independent Director2.9yrsCA$24.00kno data

5.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: HPL's board of directors are considered experienced (5.5 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 diluted in the past year, with total shares outstanding growing by 48.6%.


Top Shareholders

Company Information

Horizon Petroleum Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Horizon Petroleum Ltd.
  • Ticker: HPL
  • Exchange: TSXV
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$2.394m
  • Shares outstanding: 59.86m
  • Website: https://www.horizon-petroleum.com

Number of Employees


Location

  • Horizon Petroleum Ltd.
  • 700 4th Avenue SW
  • Suite 1500
  • Calgary
  • Alberta
  • T2P 3J4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HPLTSXV (TSX Venture Exchange)YesClass A Common SharesCACADFeb 1989
HPM1DB (Deutsche Boerse AG)YesClass A Common SharesDEEURFeb 1989

Biography

Horizon Petroleum Ltd. engages in the acquisition, exploration, and development of oil and gas properties internationally. The company is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:37
End of Day Share Price2019/12/31 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.