Pacific Exploration and Production Corp reports 558% EBITDA decline and 42.9% Revenue decline
18.03.2016 • About Pacific Exploration and Production Corp (
$PRE) • By InTwits
Pacific Exploration and Production Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pacific Exploration and Production Corp doesn't have a profitable business model yet: 2015 ROIC is -103.6%
- EBITDA Margin is quite volatile: -137.4% in 2015, 17.1% in 2014, 54.1% in 2013, 51.1% in 2012, 56.1% in 2011
- Pacific Exploration and Production Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 38.5%. At the same time it's in pair with industry average of 88.7%.
- CAPEX is quite volatile: 649 in 2015, 2,473 in 2014, 2,151 in 2013, 1,512 in 2012, 1,153 in 2011
- The company has unprofitable business model: ROIC is at -103.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Exploration and Production Corp ($PRE) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,381 | 3,885 | 4,627 | 4,950 | 2,825 | -42.9% |
| Gross Profit | 2,135 | 2,298 | 2,904 | 2,924 | 1,369 | -53.2% |
| SG&A | 189 | 278 | 337 | 361 | 221 | -38.6% |
| EBITDA | 1,898 | 1,987 | 2,504 | 848 | -3,882 | -557.5% |
| Net Income | 554 | 528 | 426 | -1,310 | -5,462 | 317.1% |
Balance Sheet
|
|---|
| Cash | 730 | 244 | 633 | 334 | 343 | 2.7% |
| Short Term Debt | 22 | 28 | 571 | 339 | 5,391 | 1,490.9% |
| Long Term Debt | 1,012 | 1,260 | 3,866 | 4,366 | 23 | -99.5% |
Cash flow
|
|---|
| Capex | 1,153 | 1,512 | 2,151 | 2,473 | 649 | -73.8% |
Ratios
|
|---|
| Revenue growth | 103.5% | 14.9% | 19.1% | 7.0% | -42.9% | |
| EBITDA growth | 123.1% | 4.7% | 26.0% | -66.1% | -557.5% | |
| Gross Margin | 63.2% | 59.2% | 62.8% | 59.1% | 48.5% | -10.6% |
| EBITDA Margin | 56.1% | 51.1% | 54.1% | 17.1% | -137.4% | -154.6% |
| Net Income Margin | 16.4% | 13.6% | 9.2% | -26.5% | -193.4% | -166.9% |
| SG&A, % of revenue | 5.6% | 7.2% | 7.3% | 7.3% | 7.8% | 0.6% |
| CAPEX, % of revenue | 34.1% | 38.9% | 46.5% | 50.0% | 23.0% | -27.0% |
| ROIC | 31.2% | 20.1% | 15.3% | -9.2% | -103.6% | -94.4% |
| ROE | 21.9% | 15.3% | 10.4% | -39.3% | | 39.3% |
| Net Debt/EBITDA | 0.2x | 0.5x | 1.5x | 5.2x | | -5.2x |
Revenue and profitability
The company's Revenue dropped on 42.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 2.3% to 3.5% in FY2015.
Gross Margin dropped on 10.6 pp from 59.1% to 48.5% in 2015. SG&A as a % of Revenue increased slightly on 0.55 pp from 7.3% to 7.8% in 2015.
Net Income marign dropped on 167 pp from -26.5% to -193% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Pacific Exploration and Production Corp had CAPEX/Revenue of 23.0%. CAPEX/Revenue dropped on 15.9 pp from 38.9% in 2012 to 23.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 39.8%.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.3x and Debt / EBITDA is . Net Debt / EBITDA dropped on 5.2x from 5.2x to in 2015. Debt surged on 15.1% in 2015 while cash increased on 2.7% in 2015.
Appendix 1: Peers in Energy
Below we provide Pacific Exploration and Production Corp 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (162 companies) | 51.2% | 9.4% | 17.1% | 18.9% | -27.5% |
|---|
| Pacific Exploration and Production Corp ($PRE) | | 14.9% | 19.1% | 7.0% | -42.9% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.0% | 29.3% | 31.5% | 29.6% | 35.2% |
|---|
| Pacific Exploration and Production Corp ($PRE) | 63.2% | 59.2% | 62.8% | 59.1% | 48.5% |
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% | -115.8% |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (161 companies) | 25.5% | 24.6% | 31.1% | 29.7% | 8.1% |
|---|
| Pacific Exploration and Production Corp ($PRE) | 56.1% | 51.1% | 54.1% | 17.1% | -137.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | 712.8% |
| Petroshale Inc ($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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (164 companies) | 43.3% | 51.1% | 39.2% | 48.8% | 31.9% |
|---|
| Pacific Exploration and Production Corp ($PRE) | 34.1% | 38.9% | 46.5% | 50.0% | 23.0% |
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% | 24.2% |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (167 companies) | 4.4% | 3.0% | 4.5% | 5.3% | -8.0% |
|---|
| Pacific Exploration and Production Corp ($PRE) | 31.2% | 20.1% | 15.3% | -9.2% | -103.6% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.3x | 3.0x |
|---|
| Pacific Exploration and Production Corp ($PRE) | 0.2x | 0.5x | 1.5x | 5.2x | |
