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 Analysis

Concerning outlook 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

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


Market Performance


7 Day Return

6.4%

MCF

4.2%

US Oil and Gas

5.3%

US Market


1 Year Return

-55.1%

MCF

-56.1%

US Oil and Gas

-10.7%

US Market

Return vs Industry: MCF exceeded the US Oil and Gas industry which returned -56.1% over the past year.

Return vs Market: MCF underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

MCFIndustryMarket
7 Day6.4%4.2%5.3%
30 Day-57.0%-35.5%-13.6%
90 Day-59.6%-51.4%-19.8%
1 Year-55.1%-55.1%-54.3%-56.1%-8.9%-10.7%
3 Year-79.6%-79.6%-51.6%-56.3%15.5%8.0%
5 Year-93.4%-93.4%-54.7%-61.7%35.2%20.4%

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?

1.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Below Fair Value: 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

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 overvalued based on its PB Ratio (1.1x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

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

78.4%

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 (16.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MCF's revenue (16.3% 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 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?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCF is currently unprofitable.

Growing Profit Margin: MCF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCF is unprofitable, but has reduced losses over the past 5 years at a rate of 12.6% 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 (-11.4%).


Return on Equity

High ROE: MCF has a negative Return on Equity (-137.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Contango Oil & Gas's financial position?


Financial Position Analysis

Short Term Liabilities: MCF's short term assets ($46.4M) do not cover its short term liabilities ($110.5M).

Long Term Liabilities: MCF's short term assets ($46.4M) do not cover its long term liabilities ($127.2M).


Debt to Equity History and Analysis

Debt Level: MCF's debt to equity ratio (61.6%) is considered high.

Reducing Debt: MCF's debt to equity ratio has increased from 11.2% to 61.6% 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 0.6x 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: MCF has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MCF has less than a year of cash runway if free cash flow continues to reduce at historical rates of -36.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

1.4yrs

Average management tenure


CEO

Wilkie Colyer (34yo)

1.67s

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's total compensation ($USD154.24K) is below average for companies of similar size in the US market ($USD1.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wilkie Colyer
President1.67yrsUS$154.24k0.78% $1.5m
E. Grady
CFO & Senior VP6.5yrsUS$999.09k0.18% $355.4k
Michael Autin
Vice President of Operations1.17yrsno data0.027% $52.2k
Farley Dakan
Senior VP of Corporate Development0.50yrno datano data

1.4yrs

Average Tenure

60yo

Average Age

Experienced Management: MCF's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wilkie Colyer
President1.67yrsUS$154.24k0.78% $1.5m
James Ford
Independent Director6.5yrsUS$144.46k0.044% $86.0k
John Goff
Independent Non Executive Chairman0.50yrno data18.33% $35.5m
Ellis McCain
Independent Director6.5yrsUS$149.46k0.055% $106.4k
Bulent Berilgen
Independent Director12.75yrsUS$145.96k0.048% $92.8k
Joseph Romano
Independent Director7.42yrsUS$129.46k0.070% $135.1k

6.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: MCF's board of directors are considered experienced (6.5 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 substantially diluted in the past year, with total shares outstanding growing by 230.9%.


Top Shareholders

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$193.670m
  • Shares outstanding: 129.11m
  • 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
C8KBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 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 and onshore properties in Texas and Wyoming in the United States. As of December 31, 2018, it had proved reserves of approximately 131.9 billion cubic feet equivalent, including 54.2 billion cubic feet of natural gas, 9.4 million barrels of crude oil and condensate, and 3.5 million barrels of natural gas liquids. The company was founded in 1986 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 03:15
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.