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Canacol Energy

CN: CNE

CA$844.3m market cap

CA$4.72 last close

Canacol Energy is a natural gas exploration and production company primarily focused on Colombia.

Investment summary

Canacol Energy is an oil and gas company involved in the exploration and production of natural gas with operations in Colombia. In August 2019 the company achieved a record production of 217mmscfd. This is a significant milestone for the company in Colombia and was made possible by the completion of the Jobo to Cartagena pipeline. Canacol is now working with its partners for a new export pipeline to Medellin that would expand export capacity to 315mmscfd by the beginning of 2023. High exploration and appraisal success rates (historically above 80%) and over 2.6tcf of unrisked prospective resource should enable reserve life expansion. Low well costs, excellent reservoir quality and high-unconstrained flow rates, combined with largely fixed gas pricing, provide visibility of free cash flows. Our 2P + risked exploration NAV currently stands at C$6.40/share.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 156.6 130.2 (116.4) (84.95) N/A 9.6
2018A 204.5 138.6 7.3 (12.32) N/A 6.7
2019E 228.1 182.6 75.5 28.10 12.7 4.0
2020E 321.8 269.0 140.1 54.71 6.5 2.8
Industry outlook

The Colombian, Caribbean Coast gas market is expected to move into gas deficit in the absence of LNG imports, incremental piped gas or the development of recent deepwater discoveries.

Last updated on 14/11/2019
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net debt (US$m) 279.1
Forecast gearing ratio (%) 106
Price performance
%
1m
3m
12m
Actual 8.5 0.6 20.4
Relative* 4.9 (4.9) 7.4
52-week high/low C$5.0/C$3.8
*% relative to local index
Key management
Charle Gamba CEO
Jason Bednar CFO

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