Rockhopper Exploration (RKH)

Business description

Rockhopper is a London-listed E&P with fully funded development of Sea Lion, a 500+mmbbl field in the Falklands as well as the potential of a similar size discovery to the south. It also holds assets in the Mediterranean.

Stock data

Market cap.£90.3m
Last close19.75p
High / Low (52 weeks)31.8p / 18.5p
Stock market listingLN
Forecast net cash (US$m)50.4
Forecast gearing ratio (%)N/A
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual(4.8)(11.2)(37.8)
Relative *(4.1)(10.1)(42.8)

* % Relative to local index

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Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2015A 4.0 (32.8) (44.7) 12.0 2.1 N/A
2016A 7.4 (15.2) 98.0 (1.3) N/A N/A
2017E 9.6 (2.4) (11.9) (2.8) N/A N/A
2018E 9.1 (3.7) (20.8) (4.5) N/A N/A

Last updated on 21/07/2017

Latest research

Disposing Civita makes sense

Update | Oil & Gas | 08/06/2017

Sea Lion economics robust in current environment

Flash note | Oil & Gas | 12/04/2017

Sea Lion thoughts and Ombrina Mare

Update | Oil & Gas | 05/04/2017

Operational update

Update | Oil & Gas | 09/02/2017

Looking to 2017

Update | Oil & Gas | 21/12/2016

A large part of a large pie

Outlook | Oil & Gas | 18/10/2016

CPR confirms size of Sea Lion

Update | Oil & Gas | 25/05/2016

Egypt hops from Beach to Rocks

Update | Oil & Gas | 21/04/2016

Chatham well deferred

Update | Oil & Gas | 16/02/2016

Looking into 2016

Update | Oil & Gas | 25/01/2016

Isobel-2 success

Flash note | Oil & Gas | 12/01/2016

Proposed merger with FOGL

Flash note | Oil & Gas | 24/11/2015

Investment summary

Rockhopper (RKH) holds a material stake in the major discoveries in the Falklands. The Sea Lion complex holds 517mmboe of 2C contingent resource (900mmboe 3C), while the Isobel Elaine complex could be of a similar magnitude (according to management estimates). This resource base is significant and commercially attractive given the cost reductions achieved through the FEED process so far – NPV10 break-even at $45/bbl. Although the timing of project sanction is uncertain, the partners are engaging with the export credit agency and contractors to secure requisite funding to allow a project sanction in 2018. RKH also holds E&P assets in Egypt and Italy, with combined volumes of over 1.3mboe/d (including limited production from Civita, which RKH recently sold, subject to closing). The resulting net cash flows should largely offset the company G&A, helping to conserve the material (adjusted) December 2016 cash balance of $60-65m. Our core NAV is 73p/share.

Last updated on 03/08/2017

Key management

Sam Moody, CEO
Stewart MacDonald, CFO

Company address

Hilltop Park
Devizes Road
Salisbury
SP3 4UF
United Kingdom
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