Twin Butte Energy Ltd EBITDA dropped on 147% in 2015 and EBITDA Margin dropped on 81.8 pp from 51.5% to -30.3%
22.03.2016 • About Twin Butte Energy Ltd (
$TBE) • By InTwits
Twin Butte Energy Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Twin Butte Energy Ltd doesn't have a profitable business model yet: 2015 ROIC is -43.4%
- EBITDA Margin is quite volatile: -30.3% in 2015, 51.5% in 2014, 39.4% in 2013, 49.0% in 2012, 49.6% in 2011
- Twin Butte Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 52.1%. At the same time it's in pair with industry average of 73.7%.
- CAPEX is quite volatile: 80.2 in 2015, 144 in 2014, 262 in 2013, 148 in 2012, 70.1 in 2011
- The company has unprofitable business model: ROIC is at -43.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Twin Butte Energy Ltd ($TBE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 119.4 | 269.8 | 300.4 | 410.9 | 328.4 | -20.1% |
| Gross Profit | 37.0 | 70.6 | 25.5 | 65.5 | 210.7 | 221.4% |
| SG&A | | | | | 13.2 | |
| EBITDA | 59.2 | 132.3 | 118.2 | 211.8 | -99.4 | -146.9% |
| Net Income | -19.0 | 31.5 | -115.6 | -57.3 | -336.9 | 487.6% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 85.0 | |
| Long Term Debt | 80.2 | 184.3 | 329.8 | 326.8 | 200.3 | -38.7% |
Cash flow
|
|---|
| Capex | 70.1 | 148.4 | 261.8 | 144.1 | 80.2 | -44.3% |
Ratios
|
|---|
| Revenue growth | 38.1% | 125.9% | 11.3% | 36.8% | -20.1% | |
| EBITDA growth | 60.0% | 123.4% | -10.6% | 79.1% | -146.9% | |
| Gross Margin | 31.0% | 26.2% | 8.5% | 16.0% | 64.2% | 48.2% |
| EBITDA Margin | 49.6% | 49.0% | 39.4% | 51.5% | -30.3% | -81.8% |
| Net Income Margin | -15.9% | 11.7% | -38.5% | -14.0% | -102.6% | -88.7% |
| SG&A, % of revenue | | | | | 4.0% | 4.0% |
| CAPEX, % of revenue | 58.7% | 55.0% | 87.1% | 35.1% | 24.4% | -10.6% |
| ROIC | 7.7% | 7.0% | -2.1% | 3.9% | -43.4% | -47.2% |
| ROE | -10.4% | 9.7% | -23.8% | -12.8% | -156.1% | -143.3% |
| Net Debt/EBITDA | 1.4x | 1.4x | 2.8x | 1.5x | | -1.5x |
Revenue and profitability
The company's Revenue dropped on 20.1% 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 surged on 48.2 pp from 16.0% to 64.2% in 2015.
Net Income marign dropped on 88.7 pp from -14.0% to -103% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 24.4%. CAPEX/Revenue dropped on 30.6 pp from 55.0% in 2012 to 24.4% in 2015. For the last three years the average CAPEX/Revenue was 48.9%.
Return on investment
The company operates at negative ROIC (-43.36%) and ROE (-156.08%). ROIC dropped on 47.2 pp from 3.9% to -43.4% in 2015. ROE dropped on 143 pp from -12.8% to -156% in 2015.
Leverage (Debt)
Debt level is 22.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.5x from 1.5x to in 2015. Debt dropped on 12.7% in 2015 while cash didn't change in 2015.
Appendix 1: Peers in Energy
Below we provide Twin Butte Energy 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (162 companies) | 51.2% | 9.4% | 17.3% | 18.5% | -27.7% |
|---|
| Twin Butte Energy Ltd ($TBE) | | 125.9% | 11.3% | 36.8% | -20.1% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.3% | 29.7% | 31.6% | 30.3% | 36.7% |
|---|
| Twin Butte Energy Ltd ($TBE) | 31.0% | 26.2% | 8.5% | 16.0% | 64.2% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (161 companies) | 25.5% | 24.6% | 31.1% | 29.6% | 8.1% |
|---|
| Twin Butte Energy Ltd ($TBE) | 49.6% | 49.0% | 39.4% | 51.5% | -30.3% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (164 companies) | 42.0% | 50.0% | 39.2% | 48.9% | 31.9% |
|---|
| Twin Butte Energy Ltd ($TBE) | 58.7% | 55.0% | 87.1% | 35.1% | 24.4% |
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 ($RRX) | | | | 29.1% | 6.2% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | 24.2% |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (167 companies) | 4.4% | 3.0% | 4.6% | 5.3% | -8.0% |
|---|
| Twin Butte Energy Ltd ($TBE) | 7.7% | 7.0% | -2.1% | 3.9% | -43.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | 7.4x |
| Lightstream Resources Ltd ($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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.3x | 2.9x |
|---|
| Twin Butte Energy Ltd ($TBE) | 1.4x | 1.4x | 2.8x | 1.5x | |
