£868.8m market cap
44.32p last close
Hurricane Energy is an E&P focused on fractured basement exploration and development in the West of Shetland region of the UKCS. The company’s 100%-owned Lancaster oil discovery (523mmbbl 2P reserves + 2C resources) is targeting first oil in H119.
Investment summary
Hurricane Energy is a UK-based E&P focused on hydrocarbon resources in naturally fractured basement reservoirs. Hurricane’s CPRs ascribe 2P reserves + 2C gross resources of 2.6bn boe across all assets. Management’s concept selection and contracting strategy appears to be delivering the desired result and it has reiterated that the Lancaster Early Production System (EPS) remains on time and on budget. The FPSO is currently waiting for a weather window opportunity to complete the buoy hook-up operation and start end-to-end commissioning. First oil remains scheduled for H119. We recently updated our valuation to reflect the terms of the Spirit Energy farm-in to the Greater Warwick Area, driving our RENAV to 102.8p/share.
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 | 571.1 | 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 | 571.1 | 39.1 |
| Last updated on 21/02/2019 | ||||||
Industry outlook
The Lancaster EPS development is forecast to generate a point-forward IRR of c 40% based on our $70/bbl long term Brent commodity price assumption.
Last updated on 21/02/2019
Sector |
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| Oil & gas |
Share price graph
Balance sheet |
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| Forecast net debt (US$m) | 114.9 |
| Forecast gearing ratio (%) | 19 |
Price performance
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Key management |
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| Dr Robert Trice | CEO |
| Alistair Stobie | CFO |
