Canacol Energy Ltd. Announces Share Consolidation
January 30, 2023
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Canacol Energy ($TSX:CNE) Ltd. is a Canadian-based oil and gas exploration and production company with operations in Colombia, Nicaragua and Brazil. Recently, Canacol Energy Ltd. announced a share consolidation in order to increase the stated capital of the company, while still maintaining the same total number of shares outstanding. This is done by reducing the number of issued and outstanding shares and increasing the pricing on each share. The company’s Board of Directors has authorized the share consolidation on the basis that it will improve the company’s capital structure, liquidity and trading of its common shares. All shareholders will receive one new common share for each 10 existing common shares held as of the effective date of the consolidation. Canacol’s Board of Directors believes that the share consolidation will increase the liquidity of the company’s shares, as well as make them more attractive to institutional investors.
Additionally, the share consolidation is expected to have a positive impact on the value of Canacol’s shares as it should result in a higher stock price per share. The Board of Directors has also declared that all fractional shares resulting from the consolidation will be rounded up to the nearest whole number. Furthermore, all outstanding options and warrants will be adjusted accordingly to reflect the changes in the number of issued and outstanding common shares. Shareholders are encouraged to contact their registered dealers, brokers or other professional advisors if they have any questions regarding the share consolidation. Canacol Energy Ltd. is confident that this share consolidation will be beneficial for its shareholders and investors in the long run.
Market Price
On Wednesday, Canacol Energy Ltd. announced a share consolidation on the Toronto Stock Exchange. The media coverage of the news has been mostly positive. CANACOL ENERGY, which is a public oil and gas company based in Canada, opened at CA$2.3 and closed at the same price, down by 0.9% from the previous closing price of 2.3. This is a reverse stock split, which means that the shareholders will receive one new consolidated share for each four existing common shares held. The decision to consolidate the shares was made following a review of the company’s capital structure. The share consolidation is expected to improve the liquidity of the company’s shares and enable the company to access a wider range of potential investors.
The share consolidation will not affect the company’s balance sheet and is not expected to have a material impact on the company’s financial results. CANACOL ENERGY will continue to issue new common shares as part of its existing stock option and restricted share unit plans. The consolidation is subject to approval by the Toronto Stock Exchange and the shareholders of CANACOL ENERGY. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Canacol Energy. More…
| Total Revenues | Net Income | Net Margin |
| 340.51 | 20.57 | 6.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Canacol Energy. More…
| Operations | Investing | Financing |
| 164.28 | -140.69 | 30.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Canacol Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 876.44 | 711.38 | 0.97 |
Key Ratios Snapshot
Some of the financial key ratios for Canacol Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.9% | 11.3% | 33.6% |
| FCF Margin | ROE | ROA |
| 24.7% | 41.9% | 8.2% |
VI Analysis
Investors looking for potential long-term investments should consider companies with strong fundamentals. CANACOL ENERGY has earned a high health score of 8/10, reflecting its ability to pay off debt and fund future operations. This is evidenced by its strong cashflows and debt situation. The company also scores well in terms of growth and profitability, but lags behind in asset and dividend. CANACOL ENERGY is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. This could make it an attractive option for investors who are looking for long-term investments with higher potential returns. In addition, investors who are looking for stability and sustainability may be interested in CANACOL ENERGY due to its strong fundamentals, as well as its ability to generate consistent revenue and earnings growth over the long term. Furthermore, the company’s strong competitive advantage and industry position means that it should be able to compete successfully against other players in the market. More…
VI Peers
The company was founded in 2002 and is headquartered in Calgary, Alberta, Canada. Canacol Energy Ltd’s primary competitors are Sterling Energy Resources Inc, Velocity Energy Inc, and Bakken Energy Corp.
– Sterling Energy Resources Inc ($OTCPK:SGER)
Velocity Energy Inc. is a Canadian oil and gas company with a market capitalization of $2.29M as of 2022. The company is engaged in the exploration, development and production of oil and natural gas properties in Canada. Velocity Energy’s primary focus is on the development of its Montney natural gas assets in British Columbia. The company’s Montney assets are located in the Peace River Arch region, where it holds approximately 100,000 net acres of land. Velocity Energy is headquartered in Calgary, Alberta.
– Velocity Energy Inc ($OTCPK:VCYE)
Bakken Energy Corp is a publicly traded company with a market capitalization of 383.21k as of 2022. The company is engaged in the exploration, production, and development of oil and gas properties. Bakken Energy Corp has a return on equity of 1.81%.
Summary
Canacol Energy Ltd., a Canadian oil and gas exploration and production company, recently announced a share consolidation. This action, which will reduce the number of issued and outstanding shares, is seen as a positive move by many investors, as it signals to the market that the company is committed to enhancing shareholder value. An analysis of Canacol Energy’s financials indicates that the company has a solid balance sheet and a healthy cash position.
The company has also demonstrated a solid operational performance over the past several years, providing investors with a steady stream of growth and dividend payments. Overall, Canacol Energy appears to be well-positioned to continue delivering long-term value for its shareholders.
