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Hurricane Energy

LN: HUR

£964.1m market cap

49.18p last close

Hurricane Energy is an E&P focused on UKCS fractured basement exploration and development. It owns 100% of the 523mmbbl (RPS 2P reserves plus 2C resources) Lancaster oil discovery, West of Shetland.

Investment summary

The Aoku Mizu FPSO is now on station and hooked up at Lancaster; we believe this keeps the EPS on schedule for first oil in H119. Hurricane will now focus on topside commissioning prior to start-up, which will be followed by a ramp-up period to a gross targeted plateau production rate of 20kbd (17kbod net of operating efficiency). In addition to progressing Lancaster, the company has a full programme of activity in its neighbouring Greater Warwick Area (GWA), with the three-well E&A programme in the GWA expected to kick off in early Q219 at Warwick Deep. Our risked valuation stands at 102.8p/share (see our last note).

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2016A 0.0 (8.8) (6.4) 0.1 639.7 N/A
2017A 0.0 (14.6) (7.0) (0.4) N/A N/A
2018E 0.0 (4.7) (12.3) (0.6) N/A N/A
2019E 128.4 43.2 1.1 0.1 639.7 43.8
Last updated on 22/03/2019
Industry outlook

The Lancaster EPS development is forecast to generate a point-forward IRR of c 40% based on our US$70/bbl long-term Brent commodity price assumption.

Last updated on 22/03/2019
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net debt (US$m) 114.9
Forecast gearing ratio (%) 19
Price performance
%
1m
3m
12m
Actual 10.7 24.8 49.0
Relative* 10.6 16.2 45.4
52-week high/low 60.0p/32.3p
*% relative to local index
Key management
Dr Robert Trice CEO
Alistair Stobie CFO

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