Long Run Exploration Ltd EBITDA dropped on 158% in 2015 and Revenue dropped on 29.5%
10.03.2016 • About Long Run Exploration Ltd (
$LRE) • By InTwits
Long Run Exploration Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Long Run Exploration Ltd doesn't have a profitable business model yet: 2015 ROIC is -40.6%
- EBITDA Margin is quite volatile: -47.4% in 2015, 57.3% in 2014, 56.1% in 2013, 50.9% in 2012, 58.7% in 2011
- Long Run Exploration Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 74.7%. At the same time it's in pair with industry average of 84.7%.
- CAPEX is quite volatile: 91.0 in 2015, 304 in 2014, 277 in 2013, 210 in 2012, 180 in 2011
- The company has unprofitable business model: ROIC is at -40.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Long Run Exploration Ltd ($LRE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 125.1 | 255.7 | 417.7 | 532.7 | 375.7 | -29.5% |
| Gross Profit | 33.4 | 53.8 | 270.6 | 122.1 | 218.1 | 78.6% |
| SG&A | | | | | 31.2 | |
| EBITDA | 73.5 | 130.1 | 234.5 | 305.1 | -178.2 | -158.4% |
| Net Income | -52.7 | -42.7 | 24.3 | -190.4 | -645.0 | 238.8% |
Balance Sheet
|
|---|
| Cash | 7.6 | 3.8 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 261.2 | 0.0 | 100.0 | 579.4 | 479.4% |
| Long Term Debt | 124.0 | 0.0 | 423.6 | 579.9 | 69.6 | -88.0% |
Cash flow
|
|---|
| Capex | 180.0 | 210.4 | 276.6 | 304.0 | 91.0 | -70.1% |
Ratios
|
|---|
| Revenue growth | 205.6% | 104.3% | 63.4% | 27.5% | -29.5% | |
| EBITDA growth | 302.3% | 77.1% | 80.3% | 30.1% | -158.4% | |
| Gross Margin | 26.7% | 21.0% | 64.8% | 22.9% | 58.1% | 35.1% |
| EBITDA Margin | 58.7% | 50.9% | 56.1% | 57.3% | -47.4% | -104.7% |
| Net Income Margin | -42.1% | -16.7% | 5.8% | -35.7% | -171.7% | -136.0% |
| SG&A, % of revenue | | | | | 8.3% | 8.3% |
| CAPEX, % of revenue | 143.8% | 82.3% | 66.2% | 57.1% | 24.2% | -32.8% |
| ROIC | 5.6% | 1.6% | 8.9% | 6.6% | -40.6% | -47.2% |
| ROE | -16.3% | -8.2% | 4.0% | -28.6% | -163.7% | -135.1% |
| Net Debt/EBITDA | 1.6x | 2.0x | 1.8x | 2.2x | | -2.2x |
Revenue and profitability
The company's Revenue dropped on 29.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 34.3 pp from -78.0% to -43.7% in 2015.
Gross Margin jumped on 35.1 pp from 22.9% to 58.1% in 2015.
Net Income marign dropped on 136 pp from -35.7% to -172% in 2015.
Capital expenditures (CAPEX) and working capital investments
Long Run Exploration Ltd's CAPEX/Revenue was 24.2% in 2015. The company showed big decline in CAPEX/Revenue of 58.1 pp from 82.3% in 2012 to 24.2% in 2015. It's average CAPEX/Revenue for the last three years was 49.2%.
Return on investment
The company operates at negative ROIC (-40.59%) and ROE (-163.68%). ROIC dropped on 47.2 pp from 6.6% to -40.6% in 2015. ROE dropped on 135 pp from -28.6% to -164% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is . Net Debt / EBITDA dropped on 2.2x from 2.2x to in 2015. Debt decreased on 4.5% in 2015 while cash didn't change in 2015.
Appendix 1: Peers in Energy
Below you can find Long Run Exploration 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (160 companies) | 43.4% | 9.5% | 16.2% | 17.6% | -27.2% |
|---|
| Long Run Exploration Ltd ($LRE) | | 104.3% | 63.4% | 27.5% | -29.5% |
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% | 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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.5% | 30.3% | 33.5% |
|---|
| Long Run Exploration Ltd ($LRE) | 26.7% | 21.0% | 64.8% | 22.9% | 58.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | 70.0% |
| Tourmaline Oil Corp ($TOU) | 67.4% | 67.9% | 80.0% | 97.6% | 70.1% |
| 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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 24.7% | 25.0% | 30.5% | 28.9% | 11.5% |
|---|
| Long Run Exploration Ltd ($LRE) | 58.7% | 50.9% | 56.1% | 57.3% | -47.4% |
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% | 315.2% |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (162 companies) | 42.0% | 47.3% | 39.1% | 47.1% | 29.1% |
|---|
| Long Run Exploration Ltd ($LRE) | 143.8% | 82.3% | 66.2% | 57.1% | 24.2% |
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 ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.5% | 4.5% | 5.0% | -6.9% |
|---|
| Long Run Exploration Ltd ($LRE) | 5.6% | 1.6% | 8.9% | 6.6% | -40.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | 7.4x |
| Lightstream Resources Ltd ($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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 2.6x |
|---|
| Long Run Exploration Ltd ($LRE) | 1.6x | 2.0x | 1.8x | 2.2x | |
