TORC Oil & Gas Ltd EBITDA dropped on 136% in 2015 and Revenue dropped on 10.1%
03.03.2016 • About TORC Oil & Gas Ltd (
$TOG) • By InTwits
TORC Oil & Gas Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TORC Oil & Gas Ltd doesn't have a profitable business model yet: 2015 ROIC is -14.4%
- The company operates at negative EBITDA Margin: -16.8%
- EBITDA Margin is quite volatile: -16.8% in 2015, 41.8% in 2014, 38.8% in 2013, -6.9% in 2012, -54.8% in 2011
- TORC Oil & Gas Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 1,617.6%. At the same time it's a lot of higher than industry average of 90.1%.
- CAPEX is quite volatile: 552 in 2015, 280 in 2014, 652 in 2013, 135 in 2012, 210 in 2011
- The company has unprofitable business model: ROIC is at -14.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TORC Oil & Gas Ltd ($TOG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.1 | 29.7 | 139.6 | 267.6 | 240.7 | -10.1% |
| Gross Profit | 2.4 | 20.5 | 105.0 | 204.7 | 152.6 | -25.4% |
| SG&A | 2.7 | 3.6 | 7.1 | 9.7 | 11.2 | 15.2% |
| EBITDA | -1.7 | -2.0 | 54.2 | 111.8 | -40.6 | -136.3% |
| Net Income | -4.7 | -18.8 | -10.1 | 6.3 | -172.7 | -2,858.9% |
Balance Sheet
|
|---|
| Cash | 110.7 | 79.7 | 13.6 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 85.0 | 179.8 | 230.1 | 27.9% |
Cash flow
|
|---|
| Capex | 210.2 | 134.7 | 651.6 | 279.6 | 552.2 | 97.5% |
Ratios
|
|---|
| Revenue growth | -96.8% | 864.7% | 370.3% | 91.8% | -10.1% | |
| EBITDA growth | -103.1% | 20.9% | -2,756.8% | 106.3% | -136.3% | |
| Gross Margin | 78.8% | 69.0% | 75.2% | 76.5% | 63.4% | -13.1% |
| EBITDA Margin | -54.8% | -6.9% | 38.8% | 41.8% | -16.8% | -58.6% |
| Net Income Margin | -151.7% | -63.2% | -7.2% | 2.3% | -71.7% | -74.1% |
| SG&A, % of revenue | 88.1% | 12.2% | 5.1% | 3.6% | 4.7% | 1.0% |
| CAPEX, % of revenue | 6,833.4% | 453.8% | 466.9% | 104.5% | 229.4% | 124.9% |
| ROIC | -1.1% | -4.7% | -0.7% | -0.2% | -14.4% | -14.1% |
| ROE | -1.7% | -4.3% | -1.4% | 0.7% | -15.4% | -16.1% |
| Net Debt/EBITDA | | | 1.3x | 1.6x | | -1.6x |
Revenue and profitability
TORC Oil & Gas Ltd's Revenue dropped on 10.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 62.5 pp from 28.2% to 90.7% in 2015.
Gross Margin dropped on 13.1 pp from 76.5% to 63.4% in 2015. SG&A as a % of Revenue increased slightly on 1.0 pp from 3.6% to 4.7% in 2015.
Net Income marign dropped on 74.1 pp from 2.3% to -71.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 TORC Oil & Gas Ltd had CAPEX/Revenue of 229%. CAPEX/Revenue dropped on 224 pp from 454% in 2012 to 229% in 2015. For the last three years the average CAPEX/Revenue was 267%.
Return on investment
The company operates at negative ROIC (-14.37%) and ROE (-15.44%). ROIC dropped on 14.1 pp from -0.24% to -14.4% in 2015. ROE dropped on 16.1 pp from 0.67% to -15.4% in 2015.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.6x from 1.6x to in 2015. Debt surged on 27.9% in 2015 while cash didn't change in 2015.
Management team
The company's CEO is Brett Herman. Brett Herman is a founder and has 8 years tenure at the company.
Appendix 1: Peers in Energy
Below we provide TORC Oil & Gas Ltd benchmarking against other companies in Energy industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.6% | 9.5% | 16.2% | 17.6% | -29.9% |
|---|
| TORC Oil & Gas Ltd ($TOG) | | 864.7% | 370.3% | 91.8% | -10.1% |
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% | 88.5% |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | 86.3% |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 30.2% |
|---|
| TORC Oil & Gas Ltd ($TOG) | 78.8% | 69.0% | 75.2% | 76.5% | 63.4% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 30.5% | 28.9% | 12.6% |
|---|
| TORC Oil & Gas Ltd ($TOG) | -54.8% | -6.9% | 38.8% | 41.8% | -16.8% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 22.8% |
|---|
| TORC Oil & Gas Ltd ($TOG) | 6,833.4% | 453.8% | 466.9% | 104.5% | 229.4% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.1% | -5.1% |
|---|
| TORC Oil & Gas Ltd ($TOG) | -1.1% | -4.7% | -0.7% | -0.2% | -14.4% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 3.1x |
|---|
| TORC Oil & Gas Ltd ($TOG) | | | 1.3x | 1.6x | |
