Tourmaline Oil Corp reports 83.6% Net Income decline while 1.6% Revenue growth
07.03.2016 • About Tourmaline Oil Corp (
$TOU) • By InTwits
Tourmaline Oil Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tourmaline Oil Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 178.6%. At the same time it's a lot of higher than industry average of 89.7%.
- CAPEX is quite volatile: 1,543 in 2015, 2,064 in 2014, 1,393 in 2013, 754 in 2012, 837 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tourmaline Oil Corp ($TOU) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 345 | 425 | 738 | 1,260 | 1,280 | 1.6% |
| SG&A | 11 | 15 | 20 | 25 | 25 | 1.6% |
| EBITDA | 233 | 288 | 590 | 1,230 | 897 | -27.0% |
| Net Income | 43 | 16 | 148 | 489 | 80 | -83.6% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 263 | 0 | -100.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 93 | 361 | 594 | 919 | 1,267 | 37.8% |
Cash flow
|
|---|
| Capex | 837 | 754 | 1,393 | 2,064 | 1,543 | -25.2% |
Ratios
|
|---|
| Revenue growth | 76.1% | 23.0% | 73.8% | 70.8% | 1.6% | |
| EBITDA growth | 84.7% | 23.8% | 104.8% | 108.5% | -27.0% | |
| EBITDA Margin | 67.4% | 67.9% | 80.0% | 97.6% | 70.1% | -27.5% |
| Net Income Margin | 12.4% | 3.7% | 20.1% | 38.8% | 6.3% | -32.5% |
| SG&A, % of revenue | 3.3% | 3.4% | 2.7% | 2.0% | 2.0% | 0.0% |
| CAPEX, % of revenue | 242.4% | 177.7% | 188.8% | 163.8% | 120.6% | -43.2% |
| ROIC | 3.7% | 1.6% | 6.2% | 14.3% | 3.2% | -11.0% |
| ROE | 2.3% | 0.6% | 4.9% | 12.6% | 1.7% | -10.9% |
| Net Debt/EBITDA | 0.4x | 1.3x | 1.0x | 0.5x | 1.4x | 0.9x |
Revenue and profitability
Tourmaline Oil Corp's Revenue increased slightly on 1.6% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 27.5 pp from 97.6% to 70.1% in 2015.
SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 32.5 pp from 38.8% to 6.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 121% in 2015. Tourmaline Oil Corp's CAPEX/Revenue dropped on 57.1 pp from 178% in 2012 to 121% in 2015. It's average level of CAPEX/Revenue for the last three years was 158%.The company investments to CAPEX were large: 172% of EBITDA.
Return on investment
The company operates at low ROIC (3.23%) and ROE (1.66%). ROIC dropped on 11.0 pp from 14.3% to 3.2% in 2015. ROE dropped on 10.9 pp from 12.6% to 1.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.4x. Net Debt / EBITDA jumped on 0.9x from 0.5x to 1.4x in 2015. Debt jumped on 37.8% in 2015 while cash dropped on 100% in 2015.
Management team
The company's CEO Michael L Rose is a founder and has spent 10 years at the company. Brian G Robinson is a Tourmaline Oil Corp's CFO. Brian G Robinson has spent 10 years at the company.
Appendix 1: Peers in Energy
Below you can find Tourmaline Oil Corp 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 ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 39.6% | 9.5% | 16.2% | 17.6% | -30.1% |
|---|
| Tourmaline Oil Corp ($TOU) | | 23.0% | 73.8% | 70.8% | 1.6% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (141 companies) | 34.0% | 29.3% | 31.6% | 29.6% | 30.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | |
| 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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| Peyto Exploration & Development Corp ($PEY) | 83.6% | 86.1% | 83.2% | 86.3% | 84.6% |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 30.5% | 28.9% | 11.9% |
|---|
| Tourmaline Oil Corp ($TOU) | 67.4% | 67.9% | 80.0% | 97.6% | 70.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($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% | 26.5% |
|---|
| Tourmaline Oil Corp ($TOU) | 242.4% | 177.7% | 188.8% | 163.8% | 120.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($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% | 6.2% |
| 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% | 4.5% | 5.0% | -6.6% |
|---|
| Tourmaline Oil Corp ($TOU) | 3.7% | 1.6% | 6.2% | 14.3% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 | 1.6x | 1.5x | 1.4x | 3.0x |
|---|
| Tourmaline Oil Corp ($TOU) | 0.4x | 1.3x | 1.0x | 0.5x | 1.4x |
