Elk Petroleum

AU: ELK

AU$24.4m market cap

AU$0.02 last close

Elk Petroleum has three key assets: Grieve, Aneth and Madden. The Grieve CO2 EOR project was commissioned in April 2018; Madden is a gas producer that provides strategic ownership of CO2 and Aneth is one of the largest CO2 EOR projects in the Rockies.

Investment summary

Elk Petroleum’s (ELK) acquisition of a 63.7% operated interest in the Aneth Rocky Mountain CO2 EOR project from Resolute Energy has transformed it into one of the largest producers on the ASX. In recent months, ELK has reported first oil sales from Grieve, however pace of ramp-up remains uncertain. A fire at Train 3 Madden in December 2018 adds to short-term production uncertainty. A key investment consideration is ELK’s ability to re-finance debt ahead of the Grieve loan maturing in 2019.

Y/E Jun
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 5.0 (5.2) (8.1) (0.9) N/A N/A
2018A 95.1 (87.4) (109.0) (8.9) N/A N/A
2019E 170.5 90.8 48.7 1.2 0.9 N/A
2020E 202.5 123.4 80.8 2.5 0.4 N/A
Last updated on 21/02/2019
Industry outlook

Alongside field operators Denbury and ConocoPhillips, ELK management has identified numerous field optimisation opportunities at Grieve and Madden with high risk-adjusted returns (many in the 50-100% IRR range). ELK continues to consolidate Rocky Mountain CO2 EOR projects.

Last updated on 21/02/2019
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net debt (A$m) 150.1
Forecast gearing ratio (%) 131
Price performance
%
1m
3m
12m
Actual (62.5) (74.6) (84.7)
Relative* (64.1) (76.6) (85.1)
52-week high/low A$0.1/A$0.0
*% relative to local index
Key management
Brad Lingo CEO
Alexander Hunter CFO

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