Painted Pony Petroleum Ltd CAPEX dropped on 59.6% in 2015 and Revenue dropped on 42.5%
02.03.2016 • About Painted Pony Petroleum Ltd (
$PPY) • By InTwits
Painted Pony Petroleum Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Painted Pony Petroleum Ltd doesn't have a profitable business model yet: 2015 ROIC is -2.0%
- EBITDA Margin is quite volatile: 30.4% in 2015, 17.6% in 2014, 39.8% in 2013, -31.3% in 2012, 65.8% in 2011
- Painted Pony Petroleum Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 205.7%. At the same time it's a lot of higher than industry average of 90.0%.
- CAPEX is quite volatile: 107 in 2015, 264 in 2014, 143 in 2013, 234 in 2012, 156 in 2011
- The company has unprofitable business model: ROIC is at -2.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Painted Pony Petroleum Ltd ($PPY) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 65.5 | 68.1 | 96.3 | 150.2 | 86.4 | -42.5% |
| Gross Profit | 49.0 | 44.4 | 59.9 | 99.5 | 42.3 | -57.5% |
| SG&A | 4.0 | 5.0 | 8.7 | 10.5 | 10.9 | 3.8% |
| EBITDA | 43.1 | -21.3 | 38.4 | 26.4 | 26.3 | -0.5% |
| Net Income | 6.5 | -48.1 | -5.7 | -15.6 | -5.2 | -66.5% |
Balance Sheet
|
|---|
| Cash | 97.0 | 77.5 | 0.0 | 30.7 | 0.0 | -100.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 28.6 | 0.0 | 63.6 | |
Cash flow
|
|---|
| Capex | 155.9 | 233.6 | 142.8 | 264.1 | 106.7 | -59.6% |
Ratios
|
|---|
| Revenue growth | 28.8% | 4.0% | 41.3% | 56.0% | -42.5% | |
| EBITDA growth | 10.0% | -149.5% | -279.8% | -31.2% | -0.5% | |
| Gross Margin | 74.8% | 65.1% | 62.2% | 66.2% | 48.9% | -17.3% |
| EBITDA Margin | 65.8% | -31.3% | 39.8% | 17.6% | 30.4% | 12.8% |
| Net Income Margin | 10.0% | -70.6% | -5.9% | -10.4% | -6.0% | 4.3% |
| SG&A, % of revenue | 6.1% | 7.4% | 9.0% | 7.0% | 12.7% | 5.6% |
| CAPEX, % of revenue | 237.9% | 342.9% | 148.3% | 175.8% | 123.4% | -52.4% |
| ROIC | 4.4% | -12.8% | -0.7% | -3.4% | -2.0% | 1.5% |
| ROE | 2.1% | -10.0% | -1.0% | -2.5% | -0.8% | 1.8% |
| Net Debt/EBITDA | -2.2x | | 0.7x | -1.2x | 2.4x | 3.6x |
Revenue and profitability
Painted Pony Petroleum Ltd's Revenue dropped on 42.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 12.8 pp from 17.6% to 30.4% in 2015.
Gross Margin dropped on 17.3 pp from 66.2% to 48.9% in 2015. SG&A as a % of Revenue increased on 5.6 pp from 7.0% to 12.7% in 2015.
Net Income marign increased on 4.3 pp from -10.4% to -6.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 123% in 2015. The company showed big decline in CAPEX/Revenue of 219 pp from 343% in 2012 to 123% in 2015. Average CAPEX/Revenue for the last three years was 149%.The company has spent a lot to CAPEX (406% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-1.97%) and ROE (-0.78%). ROIC increased slightly on 1.5 pp from -3.4% to -2.0% in 2015. ROE increased slightly on 1.8 pp from -2.5% to -0.78% in 2015.
Leverage (Debt)
Debt level is 2.4x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA jumped on 3.6x from -1.2x to 2.4x in 2015. Debt surged while cash dropped on 100% in 2015.
Appendix 1: Peers in Energy
Below you can find Painted Pony Petroleum Ltd benchmarking vs. other companies in Energy industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Petro Rio SA ($PRJ) | -36.3% | -32.1% | -34.9% | 10,977.1% | |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | |
| Sterling Resources Ltd ($SLG) | | -94.8% | 4,514.9% | 2,244.4% | |
| Ikkuma Resources Corp ($IKM) | 22.5% | 17.0% | -4.5% | 1,231.1% | |
| Spartan Energy Corp ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.0% | 10.4% | 16.2% | 17.6% | -25.6% |
|---|
| Painted Pony Petroleum Ltd ($PPY) | | 4.0% | 41.3% | 56.0% | -42.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 29.3% |
|---|
| Painted Pony Petroleum Ltd ($PPY) | 74.8% | 65.1% | 62.2% | 66.2% | 48.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | |
| Tourmaline Oil Corp ($TOU) | 67.4% | 67.9% | 80.0% | 97.6% | |
| Bonavista Energy Corp ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | 54.5% |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 24.7% | 25.7% | 30.5% | 29.6% | 11.9% |
|---|
| Painted Pony Petroleum Ltd ($PPY) | 65.8% | -31.3% | 39.8% | 17.6% | 30.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | |
| Petroshale Inc ($PSH) | 30.6% | | 346.6% | 865.9% | |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 21.4% |
|---|
| Painted Pony Petroleum Ltd ($PPY) | 237.9% | 342.9% | 148.3% | 175.8% | 123.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($PSI) | 33.5% | 30.0% | 29.7% | 41.0% | 6.0% |
| Sea Dragon Energy Inc ($SDX) | -10.1% | 8.1% | 21.8% | 32.9% | |
| Raging River Exploration Inc ($RRX) | | | | 29.1% | |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.1% | -6.0% |
|---|
| Painted Pony Petroleum Ltd ($PPY) | 4.4% | -12.8% | -0.7% | -3.4% | -2.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | |
| Lightstream Resources Ltd ($LTS) | | 2.0x | | 27.8x | |
| Petroshale Inc ($PSH) | 0.1x | | | 21.7x | |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 3.3x |
|---|
| Painted Pony Petroleum Ltd ($PPY) | -2.2x | | 0.7x | -1.2x | 2.4x |
