LGX Oil + GAS Inc reports 554% EBITDA decline and 289 pp EBITDA Margin decline from 29.6% to -259%
22.04.2016 • About LGX Oil + GAS Inc (
$OIL) • By InTwits
LGX Oil + GAS Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- LGX Oil + GAS Inc doesn't have a profitable business model yet: 2015 ROIC is -64.6%
- The company operates at negative EBITDA Margin: -259.1%
- LGX Oil + GAS Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -88.6%0
- LGX Oil + GAS Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 4,630.2%. At the same time it's a lot of higher than industry average of 59.2%.
- CAPEX is quite volatile: 0.97 in 2015, 17.5 in 2014, 15.3 in 2013, 9.9 in 2012, 20.0 in 2011
- The company has unprofitable business model: ROIC is at -64.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
LGX Oil + GAS Inc ($OIL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 0.088 | 4.046 | 17.388 | 20.096 | 10.420 | -48.1% |
| Gross Profit | | 2.378 | 9.615 | | | |
| SG&A | | | | | 0.855 | |
| EBITDA | | -4.617 | -20.418 | 5.953 | -26.999 | -553.5% |
| Net Income | -2.044 | 3.419 | -20.327 | -42.922 | -35.655 | -16.9% |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.710 | 0.177 | 1.132 | 0.039 | -96.5% |
| Short Term Debt | 0.000 | 1.850 | 11.050 | 20.340 | 29.610 | 45.6% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 19.977 | 9.936 | 15.321 | 17.478 | 0.969 | -94.5% |
Ratios
|
|---|
| Revenue growth | -98.1% | 4,502.0% | 329.7% | 15.6% | -48.1% | |
| EBITDA growth | | | 342.2% | -129.2% | -553.5% | |
| Gross Margin | | 58.8% | 55.3% | | | 0.0% |
| EBITDA Margin | 0.0% | -114.1% | -117.4% | 29.6% | -259.1% | -288.7% |
| Net Income Margin | -2,324.7% | 84.5% | -116.9% | -213.6% | -342.2% | -128.6% |
| SG&A, % of revenue | | | | | 8.2% | 8.2% |
| CAPEX, % of revenue | 22,721.0% | 245.6% | 88.1% | 87.0% | 9.3% | -77.7% |
| ROIC | -4.8% | -8.9% | -27.8% | -2.7% | -64.6% | -61.9% |
| ROE | -5.0% | 5.0% | -21.2% | -66.0% | -135.8% | -69.8% |
| Net Debt/EBITDA | | | | 3.2x | | -3.2x |
Revenue and profitability
LGX Oil + GAS Inc's Revenue dropped on 48.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 289 pp from 29.6% to -259% in 2015.
Net Income marign dropped on 129 pp from -214% to -342% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 9.3% in 2015. CAPEX/Revenue dropped on 236 pp from 246% in 2012 to 9.3% in 2015. It's average CAPEX/Revenue for the last three years was 61.5%.
Return on investment
The company operates at negative ROIC (-64.57%) and ROE (-135.78%). ROIC dropped on 61.9 pp from -2.7% to -64.6% in 2015. ROE dropped on 69.8 pp from -66.0% to -136% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is . Net Debt / EBITDA dropped on 3.2x from 3.2x to in 2015. Debt surged on 45.6% in 2015 while cash dropped on 96.5% in 2015.
Appendix 1: Peers in Energy
Below we provide LGX Oil + GAS Inc 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 |
|---|
| ONEnergy Inc ($OEG) | | | | 6,002.6% | 231.5% |
| Petroshale Inc ($PSH) | | | | 159.9% | 147.8% |
| Toro Oil & Gas Ltd ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| Ikkuma Resources Corp ($IKM) | | 17.0% | -4.5% | 1,231.1% | 100.3% |
| Seven Generations Energy Ltd ($VII) | | | 115.7% | 340.2% | 39.0% |
| |
|---|
| Median (152 companies) | 63.6% | 9.4% | 17.3% | 19.0% | -27.4% |
|---|
| LGX Oil + GAS Inc ($OIL) | | 4,502.0% | 329.7% | 15.6% | -48.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Americas Petrogas Inc ($BOE) | | 77.1% | 43.3% | -34.3% | 121.1% |
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Orca Exploration Group Inc ($ORC.B) | 69.1% | 92.3% | 69.0% | 66.3% | 93.1% |
| Serinus Energy Inc ($SEN) | 80.4% | 80.5% | 76.5% | 86.8% | 88.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (137 companies) | 34.0% | 29.3% | 31.5% | 29.6% | 33.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | 9.2% | 59.4% | 64.5% | 70.8% | 201.9% |
| Perpetual Energy Inc ($PMT) | 26.1% | 35.5% | 70.7% | 58.0% | 110.3% |
| Petro Rio SA ($PRJ) | -4,925.5% | -4,809.7% | -6,899.7% | 28.2% | 90.7% |
| Peyto Exploration & Development Corp ($PEY) | 83.6% | 86.1% | 83.2% | 86.3% | 84.6% |
| Innergex Renewable Energy Inc ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (154 companies) | 25.5% | 24.8% | 31.5% | 29.7% | 5.7% |
|---|
| LGX Oil + GAS Inc ($OIL) | | -114.1% | -117.4% | 29.6% | -259.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Primeline Energy Holdings Inc ($PEH) | | | | | 1,091.8% |
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | 712.8% |
| WesternZagros Resources Ltd ($WZR) | | | | | 385.6% |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | 315.2% |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (155 companies) | 42.6% | 48.7% | 39.2% | 48.6% | 29.5% |
|---|
| LGX Oil + GAS Inc ($OIL) | 22,721.0% | 245.6% | 88.1% | 87.0% | 9.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | 24.2% |
| Petro Rio SA ($PRJ) | -15.5% | -9.6% | -12.7% | -3.5% | 19.4% |
| Orca Exploration Group Inc ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
| Perpetual Energy Inc ($PMT) | -10.6% | -10.1% | 9.1% | 10.4% | 16.1% |
| |
|---|
| Median (155 companies) | 4.5% | 3.1% | 4.7% | 5.3% | -9.3% |
|---|
| LGX Oil + GAS Inc ($OIL) | -4.8% | -8.9% | -27.8% | -2.7% | -64.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 | 9.9x |
| 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 | 2.6x |
|---|
| LGX Oil + GAS Inc ($OIL) | | | | 3.2x | |
