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  5. GASX: Could you please comment on these two news pieces (1) the recent earnings last week on NG Energy (GASX) and on(2) this new recent announcement https [NG Energy International Corp.]
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Q: Could you please comment on these two news pieces (1) the recent earnings last week on NG Energy (GASX) and on(2) this new recent announcement

https://www.globenewswire.com/news-release/2024/09/03/2939523/0/en/NG-Energy-Announces-Plans-to-Accelerate-Sinu-9-Development-and-Brokered-Private-Placement-for-Aggregate-Gross-Proceeds-of-C-30-Million.html

and what the outlook for the stock is based on those 2 pieces of information.

Based on your last write up do you still "consider it and interesting small cap sector stock."? albeit risky.

Thank you.



Asked by James on September 05, 2024
5i Research Answer:

GASX reported a loss of 6c per share, vs estimates of -1c; Revenue of $8.6M missed estimates of $10.25M. EBITDA of $4.4M missed estimates by 21%. Revenue rose sharply (262%) and cash flow swung to positive $2.6M vs ($0.8M). Production rose 142%. Certainly growth is high here, but from a low base. The acceleration of pipeline development is positive, and more drilling is planned. It certainly shows confidence from management that demand is there and it will be able to increase production into the new takeaway capacity. The new capacity will be 14% of Columbia's needs. While the share issuance ($30M) is dilutive, we are OK with companies raising money for specific growth objectives. There is potential here, certainly, but yes we would consider above average risk for sure.