NYSE:MR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Montage Resources Corporation operates as an oil and natural gas exploration and production company in the United States. More Details


Snowflake Analysis

Fair value with concerning outlook.


Similar Companies

Share Price & News

How has Montage Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.0%

MR

2.6%

US Oil and Gas

0.09%

US Market


1 Year Return

11.3%

MR

-45.4%

US Oil and Gas

12.6%

US Market

Return vs Industry: MR exceeded the US Oil and Gas industry which returned -44.9% over the past year.

Return vs Market: MR underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

MRIndustryMarket
7 Day2.0%2.6%0.09%
30 Day-9.8%-8.1%-1.6%
90 Day2.3%-15.6%7.9%
1 Year11.3%11.3%-42.0%-45.4%15.2%12.6%
3 Year-87.7%-87.7%-42.1%-49.7%38.9%29.6%
5 Year-87.5%-87.5%-34.6%-47.6%87.6%66.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Montage Resources 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: MR ($4.52) is trading below our estimate of fair value ($10.51)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MR is good value based on its PB Ratio (0.2x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Montage Resources forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

105.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MR's revenue (11.9% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: MR's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Montage Resources performed over the past 5 years?

66.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MR is currently unprofitable.

Growing Profit Margin: MR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MR is unprofitable, but has reduced losses over the past 5 years at a rate of 66.7% per year.

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

Earnings vs Industry: MR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-39.4%).


Return on Equity

High ROE: MR has a negative Return on Equity (-3.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Montage Resources's financial position?


Financial Position Analysis

Short Term Liabilities: MR's short term assets ($106.7M) do not cover its short term liabilities ($222.7M).

Long Term Liabilities: MR's short term assets ($106.7M) do not cover its long term liabilities ($740.3M).


Debt to Equity History and Analysis

Debt Level: MR's debt to equity ratio (71.1%) is considered high.

Reducing Debt: MR's debt to equity ratio has increased from 28.6% to 71.1% 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: Insufficient data to determine if MR has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Montage Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

John Reinhart (51 yo)

1.58yrs

Tenure

US$2,963,347

Compensation

Mr. John K. Reinhart is the President and Chief Executive Officer and Director of Montage Resources Corporation since February 2019. He has been the Chief Executive Officer and President at Blue Ridge Moun ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.96M) is above average for companies of similar size in the US market ($USD1.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Reinhart
President1.58yrsUS$2.96m0.53%
$ 857.6k
Michael Hodges
Executive VP & CFO1.58yrsUS$1.49m0.031%
$ 50.1k
Matthew Rucker
Executive VP & COO0.25yrno data0.11%
$ 173.4k
Timothy Loos
Senior Vice President of Accounting & Finance1.25yrsno data0.027%
$ 43.3k
Lawrence Gorski
Vice President of Administration7.08yrsno datano data
Douglas Kris
Vice President of Investor Relations5.42yrsno datano data
Paul Johnston
Executive VP1.58yrsno data0.092%
$ 149.7k
John Colling
VP & Treasurer6.33yrsno datano data
Daniel Sweeney
Director6.08yrsno datano data

1.6yrs

Average Tenure

47yo

Average Age

Experienced Management: MR's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Reinhart
President1.58yrsUS$2.96m0.53%
$ 857.6k
D. Phillips
Independent Director9.67yrsUS$101.45k0.087%
$ 142.4k
Douglas Swanson
Independent Director9.67yrsUS$101.45k0.087%
$ 142.4k
Randall Albert
Independent Chairman & Lead Independent Director0.75yrUS$121.86k0.089%
$ 144.2k
Mark Burroughs
Independent Director9.67yrsUS$116.45k0.096%
$ 156.5k
Richard Paterson
Independent Director6.25yrsUS$142.70k0.088%
$ 143.6k
Donald Dimitrievich
Independent Director1.58yrsno datano data

6.3yrs

Average Tenure

51yo

Average Age

Experienced Board: MR's board of directors are considered experienced (6.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Montage Resources Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Montage Resources Corporation
  • Ticker: MR
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$162.817m
  • Shares outstanding: 36.02m
  • Website: https://www.montageresources.com

Number of Employees


Location

  • Montage Resources Corporation
  • 122 West John Carpenter Freeway
  • Suite 300
  • Irving
  • Texas
  • 75039
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2014
EPWADB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014

Biography

Montage Resources Corporation operates as an oil and natural gas exploration and production company in the United States. As of December 31, 2019, it had an acreage position comprising approximately 233,80 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 05:46
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.