AMEX:MCF

Stock Analysis Report

Executive Summary

Contango Oil & Gas Company, an independent oil and natural gas company, acquires, explores, develops, exploits, and produces crude oil and natural gas properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas and Wyoming in the United States.

Snowflake

Fundamentals

Overvalued with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-9.1%

MCF

0.8%

US Oil and Gas

2.3%

US Market


1 Year Return

-64.5%

MCF

-22.2%

US Oil and Gas

5.6%

US Market

Return vs Industry: MCF underperformed the US Oil and Gas industry which returned -22.2% over the past year.

Return vs Market: MCF underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

MCFIndustryMarket
7 Day-9.1%0.8%2.3%
30 Day17.3%-7.9%-1.0%
90 Day48.9%-8.3%-0.7%
1 Year-64.5%-64.5%-19.3%-22.2%7.9%5.6%
3 Year-79.1%-79.1%-8.2%-16.4%45.6%36.3%
5 Year-93.6%-93.6%-23.7%-34.3%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate MCF's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate MCF's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MCF is good value based on its PB Ratio (0.6x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

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

55.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MCF's revenue is expected to decline over the next 3 years (-5.2% per year).

High Growth Revenue: MCF's revenue is forecast to decline over the next 3 years (-5.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

1.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MCF is unprofitable, but has reduced losses over the past 5 years at a rate of 1.2% per year.

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

Earnings vs Industry: MCF is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (22.6%).


Return on Equity

High ROE: MCF has a negative Return on Equity (-100.57%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MCF is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MCF is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Contango Oil & Gas's financial position?


Financial Position Analysis

Short Term Liabilities: MCF's short term assets ($13.7M) do not cover its short term liabilities ($109.1M)

Long Term Liabilities: MCF's short term assets (13.7M) do not cover its long term liabilities (15.4M)


Debt to Equity History and Analysis

Debt Level: MCF's debt to equity ratio (46.8%) is considered high

Reducing Debt: MCF's debt to equity ratio has increased from 11.2% to 46.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: MCF's debt is not covered by short term assets (assets are 0.2x 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: Insufficient data to determine if MCF has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Next Steps

Management

What is the CEO of Contango Oil & Gas's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Wilkie Colyer (34yo)

1.2yrs

Tenure

US$154,235

Compensation

Mr. Wilkie S. Colyer, Jr. has been Chief Executive Officer and Director of Contango Oil & Gas Company since August 15, 2018 and serves as its President. He was Interim President of Contango Oil & Gas Compa ...


CEO Compensation Analysis

Compensation vs. Market: Wilkie has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: MCF's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: MCF's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: MCF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$17,499,99917 Sep 19
John Goff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares18,421,052
Max PriceUS$0.95
BuyUS$102,25128 Dec 18
Goff Focused Strategies LLC
EntityCompany
Shares32,102
Max PriceUS$3.19
BuyUS$22,62228 Dec 18
Goff Capital, Inc.
EntityCompany
Shares7,101
Max PriceUS$3.19
BuyUS$79,63028 Dec 18
John Goff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$3.19
BuyUS$68,01327 Dec 18
John Goff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares23,000
Max PriceUS$2.96
BuyUS$20,70327 Dec 18
Goff Capital, Inc.
EntityCompany
Shares7,000
Max PriceUS$2.96
BuyUS$57,22226 Dec 18
Goff Capital, Inc.
EntityCompany
Shares19,862
Max PriceUS$2.88
BuyUS$228,88226 Dec 18
John C. Goff 2010 Family Trust
EntityCompany
Shares79,448
Max PriceUS$2.88
BuyUS$97,63203 Dec 18
John C. Goff 2010 Family Trust
EntityCompany
Shares24,000
Max PriceUS$4.07
BuyUS$520,70030 Nov 18
John C. Goff 2010 Family Trust
EntityCompany
Shares125,000
Max PriceUS$4.17
BuyUS$154,07629 Nov 18
John C. Goff 2010 Family Trust
EntityCompany
Shares40,000
Max PriceUS$3.85
BuyUS$218,89228 Nov 18
John C. Goff 2010 Family Trust
EntityCompany
Shares60,000
Max PriceUS$3.65
BuyUS$149,53428 Nov 18
Goff Focused Strategies LLC
EntityCompany
Shares40,000
Max PriceUS$3.74
BuyUS$317,92627 Nov 18
Goff Focused Strategies LLC
EntityCompany
Shares85,000
Max PriceUS$3.74
BuyUS$186,68226 Nov 18
Goff Focused Strategies LLC
EntityCompany
Shares51,500
Max PriceUS$3.62
BuyUS$35,20419 Nov 18
Goff Capital, Inc.
EntityCompany
Shares8,801
Max PriceUS$4.00
BuyUS$1,384,53619 Nov 18
Goff Focused Strategies LLC
EntityCompany
Shares346,134
Max PriceUS$4.00
BuyUS$4,249,45219 Nov 18
John Goff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,062,363
Max PriceUS$4.00

Ownership Breakdown


Management Team

  • E. Grady (66yo)

    CFO & Senior VP

    • Tenure: 6yrs
    • Compensation: US$999.09k
  • Sergio Castro (50yo)

    VP, Treasurer & Assistant Secretary

    • Tenure: 13.6yrs
    • Compensation: US$320.06k
  • Michael Autin (60yo)

    Vice President of Operations

    • Tenure: 0.7yrs
  • Wilkie Colyer (34yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$154.24k

Board Members

  • Jim Ford (51yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$144.46k
  • John Goff (63yo)

    Independent Director

    • Tenure: 1.2yrs
  • Lon McCain (71yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$149.46k
  • Bill Berilgen (71yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$145.96k
  • Joe Romano (66yo)

    Independent Chairman

    • Tenure: 6.5yrs
    • Compensation: US$129.46k
  • Wilkie Colyer (34yo)

    President

    • Tenure: 1.2yrs
    • Compensation: US$154.24k

Company Information

Contango Oil & Gas Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Contango Oil & Gas Company
  • Ticker: MCF
  • Exchange: AMEX
  • Founded: 1986
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$180.315m
  • Shares outstanding: 85.86m
  • Website: https://www.contango.com

Number of Employees


Location

  • Contango Oil & Gas Company
  • 717 Texas Avenue
  • Suite 2900
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCFAMEX (NYSE MKT LLC)YesCommon StockUSUSDJan 1991
C8KDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1991

Biography

Contango Oil & Gas Company, an independent oil and natural gas company, acquires, explores, develops, exploits, and produces crude oil and natural gas properties in the shallow waters of the Gulf of Mexico ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:35
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.