Yahoo Finance Tamboran Resources Limited (ASX:TBN) Could Be Less Than A Year Away From Profitability
We feel now is a pretty good time to analyse Tamboran Resources Limited's (ASX:TBN) business as it appears the company may be on the cusp of a considerable accomplishment. Tamboran Resources Limited, a natural gas company, focuses on developing unconventional gas resources in Australia. On 30 June 2022, the AU$368m market-cap company posted a loss of AU$11m for its most recent financial year. The most pressing concern for investors is Tamboran Resources' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Tamboran Resources
According to some industry analysts covering Tamboran Resources, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$16m in 2023. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of -32%,
We're not going to go through company-specific developments for Tamboran Resources given that this is a high-level summary, but, keep in mind that typically energy companies, depending on the stage of operation and resource produced, have irregular periods of cash flow. So, periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Tamboran Resources has no debt on its balance sheet, which is quite unusual for a cash-burning oil and gas company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Tamboran Resources which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Tamboran Resources, take a look at Tamboran Resources' company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:
Historical Track Record: What has Tamboran Resources' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Tamboran Resources' board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
