£101m market cap
5.07p last close
Hurricane Energy is an E&P focused on fractured basement exploration and development in the West of Shetland region. The company’s 100%-owned Lancaster oil discovery achieved first oil on target in H119.
Investment summary
On 8 June Hurricane announced the resignation of Dr Robert Trice as CEO and Beverley Smith has been appointed as interim CEO. Beverley will oversee a thorough review of all available data and will propose a future activity programme to increase production while maintaining capital discipline. Production from the Lancaster early production system (EPS) was relying on the deliverability of the 205/21a-6 well following Hurricane’s unexpected shut-in of 205/21a-7z in May 2020 and full-year guidance was suspended. Electrical Submersible Pumps (ESPs) were commissioned in early July 2020 and both wells are now flowing with ESPs at a combined rate of c 17,000bopd and are being tested before finalising a near-term production strategy. Our risked valuation stands at 37.1p/share and our core NAV at 13.6p/share.
Y/E Dec |
Revenue (US$m) |
EBITDA (US$m) |
PBT (US$m) |
EPS (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 0.0 | (12.6) | (18.5) | (2.2) | N/A | N/A |
| 2019A | 170.3 | (11.7) | 30.0 | (2.5) | N/A | 1.1 |
| 2020E | 156.1 | 47.7 | (58.7) | 12.9 | 0.5 | 2.1 |
| 2021E | 171.0 | 65.3 | (27.0) | 13.9 | 0.5 | 2.5 |
Industry outlook
Hurricane has further drilling opportunities both to expand near-term production and reduce uncertainty over the scale of long-term resources that might be exploited in a full field development.
Last updated on 11/08/2020
Sector |
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| Oil & gas |
Share price graph
Balance sheet |
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| Forecast net cash (US$m) | 10.6 |
| Forecast gearing ratio (%) | N/A |
Price performance
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Key management |
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| Richard Chaffe | CFO |
| Beverley Smith | Interim CEO |
| Philip Corbett | Head of IR |
