Canacol Energy (TSX: CNE)

Currency in CAD

Last close As at 03/02/2023

CAD12.24

0.83 (7.27%)

Market capitalisation

CAD391m

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

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. Canacol sells gas under long-term, fixed-price gas contracts, typically of five to 10 years’ duration with inflation clauses to protect cash flows.

Sector

Oil & Gas

Equity Analyst

Elaine Reynolds

Elaine Reynolds

Analyst, Energy & Resources

Key Management

  • Charle Gamba

    CEO

  • Jason Bednar

    CFO

Balance Sheet

Forecast net debt (US$m)

450.3

Forecast gearing ratio (%)

230

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 19.9 12.8 (28.2)
Relative 14.0 2.7 (24.4)
52 week high/low C$3.5/C$1.8

Financials

Canacol offers investors a pure play on the Colombian natural gas market where it holds a c 20% market share of national demand. The company continues to progress a new pipeline connecting to interior markets, which will add 100mmscfd from the end of 2024. In 2022, Canacol upgraded its net unrisked prospective resources from 5.7tcf to 20.5tcf, and is focused on converting this into reserves, targeting a reserves replacement ratio of over 200%. Ten wells are planned in 2023, with an emphasis on exploration wells, including the first well targeting a new Tertiary gas play. The planned cash and cash dividends are covered by Canacol’s existing cash and cash generation.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2020A 246.8 172.9 86.1 2.18 412.8 10.7
2021A 250.5 162.2 87.7 24.59 36.6 12.9
2022E 272.5 204.6 90.4 28.57 31.5 9.1
2023E 309.7 241.1 117.6 33.42 26.9 8.3

Thematics

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free