Energy Company, Eon NRG Limited (ASX: E2E) has released its full-year results for 2018. The company has reported revenue from ordinary activities of US$4.981 million for 2018 as compared to US$4.104 million in 2017, representing a growth of 21%. The rise in revenue was driven by the increase in oil production and higher average oil prices. Over the period of one year, the average oil prices have increased significantly from US$48.45 per barrel in 2017 to US$65.14 per barrel in 2018, acting as a catalyst in the growth of revenues.
Although, EON NRG has reported a Net loss of US$1.444 million in 2018, the company has reported Earnings before interest, tax, depreciation, amortization and exploration (EBITDAX) of US$672,856 in 2018 which is 174% higher than the previous corresponding year (US$246,566).
Following the release of the full year results, the share price of the company soared by 40% in the intraday day trade as on 1 March 2019 (2:20 PM AEST).
Eon currently owns various oil and gas fields in onshore USA, and it is majorly involved in the exploration of production of oil and gas. During 2018, the company acquired 15,000 acres in the Powder River Basin and before that in Q3 2017 the company had acquired Borie Field, both of which are located in Wyoming, North America. Due to the contribution from the Borie Field, the oil sales volumes in 2018 were higher than pcp. Moreover, the fields remained very profitable with a gross profit margin of 48% in 2018.
During the year, the company upgraded its pipes within the Borie Field to capture gas that can be used for winter heating rather than using propane that was previously sourced externally. The company has made significant field improvements to reduce its operating costs and to increase the field’s net return as well as to add value to its reserves.
The company’s Oil and Gas division also own Silvertip Field, located in Bighorn Basin, Wyoming, covering an area of 4,700 acres, 4,437 acres of which are held by production. During 2018, the company carried out the successful recompletion of 35-28F well which has resulted in the production of more than 121 Million Cubic Feet (MMcf) of gas in 2018.
Besides Oil and Gas division, the company also has Battery Mineral division in which it has made a significant addition by acquiring load claims over potential Cobalt assets in Nevada.
As at 31 December 2018, the company has total current assets of US$1.149 million and total current liabilities of US$7.212 million. For 2018, the company reported net cash provided by operating activities of US$746,422, net cash used in investing activities of US$416,100 and Net cash used in financing activities of US$379,885.
E2E’s shares are trading at $0.007, up by 40%, with a market capitalization of circa $4.06 million as on 1 March 2019 (2:20 PM AEST).
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