DB:EH4

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Extraction Oil & Gas

Executive Summary

Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado.


Snowflake Analysis

Fair value with weak fundamentals.


Similar Companies

Share Price & News

How has Extraction Oil & Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EH4's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

EH4

3.0%

DE Oil and Gas

-0.6%

DE Market


1 Year Return

-95.8%

EH4

39.0%

DE Oil and Gas

3.0%

DE Market

Return vs Industry: EH4 underperformed the German Oil and Gas industry which returned 37.2% over the past year.

Return vs Market: EH4 underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

EH4IndustryMarket
7 Day0%3.0%-0.6%
30 Day-83.3%5.4%-0.1%
90 Day-38.0%13.1%16.4%
1 Year-95.8%-95.8%41.9%39.0%5.2%3.0%
3 Year-98.7%-98.7%17.3%6.7%1.0%-6.9%
5 Yearn/a160.9%124.2%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Extraction Oil & Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Extraction Oil & Gas undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EH4 (€0.15) is trading below our estimate of fair value (€0.45)

Significantly Below Fair Value: EH4 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EH4 is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: EH4 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EH4's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EH4 is good value based on its PB Ratio (0.1x) compared to the DE Oil and Gas industry average (1.3x).


Next Steps

Future Growth

How is Extraction Oil & Gas forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

78.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EH4 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: EH4 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: EH4 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: EH4's revenue is expected to decline over the next 3 years (-28.3% per year).

High Growth Revenue: EH4's revenue is forecast to decline over the next 3 years (-28.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EH4 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Extraction Oil & Gas performed over the past 5 years?

-52.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EH4 is currently unprofitable.

Growing Profit Margin: EH4 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EH4 is unprofitable, and losses have increased over the past 5 years at a rate of -52.9% per year.

Accelerating Growth: Unable to compare EH4's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EH4 is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16.2%).


Return on Equity

High ROE: EH4 has a negative Return on Equity (-299%), as it is currently unprofitable.


Next Steps

Financial Health

How is Extraction Oil & Gas's financial position?


Financial Position Analysis

Short Term Liabilities: EH4's short term assets ($319.5M) do not cover its short term liabilities ($464.2M).

Long Term Liabilities: EH4's short term assets ($319.5M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: EH4's debt to equity ratio (368.1%) is considered high.

Reducing Debt: EH4's debt to equity ratio has increased from 83.8% to 368.1% over the past 5 years.


Balance Sheet


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: EH4 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if EH4 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Extraction Oil & Gas's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EH4's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EH4's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EH4's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EH4'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 EH4's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Matt Owens (34yo)

1.25yrs

Tenure

US$3,134,245

Compensation

Mr. Matthew R. Owens, also known as Matt, co-founded Extraction Oil & Gas, Inc. (also known as Extraction Oil & Gas, LLC) in November 14, 2012 and serves as its President. Mr. Owens has been Chief Executiv ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD3.13M) is above average for companies of similar size in the German market ($USD469.15K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Owens
Co-Founder1.25yrsUS$3.13m0.25% $43.1k
Tom Brock
VP, Principal Financial Officer & Chief Accounting Officer0.83yrUS$1.60m0.23% $38.9k
Eric Christ
VP, General Counsel & Corporate Secretary3.67yrsUS$1.65m0.20% $34.0k
Marianella Foschi
Vice President of Finance0.83yrUS$678.27k0.037% $6.4k
Thomas Tyree
Executive Chairman0.33yrno datano data
Jesse Silva
Co-Founder & Operations Managerno datano datano data
Eric Jacobsen
Senior Vice President of Operations3.75yrsno datano data
Louis Baltimore
Director of Investor Relationsno datano datano data

1.3yrs

Average Tenure

40yo

Average Age

Experienced Management: EH4's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Matthew Owens
Co-Founder1.25yrsUS$3.13m0.25% $43.1k
Thomas Tyree
Executive Chairman0.33yrno datano data
Peter Leidel
Independent Director7.67yrsUS$230.89k0.10% $17.7k
Wayne Murdy
Lead Independent Director2.33yrsUS$249.00k0.10% $17.7k
Marvin Chronister
Independent Director3.75yrsUS$236.50k0.067% $11.5k
Patrick O'Brien
Independent Director3.75yrsUS$234.00k0.12% $20.7k
John Gaensbauer
Independent Director7.67yrsUS$217.36k0.089% $15.2k
Audrey Robertson
Independent Director0.83yrUS$268.08k0.031% $5.4k

3.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: EH4's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EH4 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Extraction Oil & Gas, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Extraction Oil & Gas, Inc.
  • Ticker: EH4
  • Exchange: DB
  • Founded: 2012
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$19.353m
  • Listing Market Cap: US$17.127m
  • Shares outstanding: 138.14m
  • Website: https://www.extractionog.com

Number of Employees


Location

  • Extraction Oil & Gas, Inc.
  • 370 17th Street
  • Suite 5300
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XOGA.QOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2016
EH4DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016

Biography

Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado. The company also engages in the construction and support of midstream assets to gather, process, and produce crude oil and gas. As of December 31, 2019, it had approximately 169,900 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 125,500 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 254.1 MMBoe; and had 1,509 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado. On June 14, 2020, Extraction Oil & Gas, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:33
End of Day Share Price2020/06/25 00:00
Earnings2020/03/31
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.