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.£97.1m
Last close21.25p
High / Low (52 weeks)39.0p / 19.2p
Stock market listingLN
Forecast net cash (US$m)79.8
Forecast gearing ratio (%)N/A
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual(8.6)(7.6)(26.7)
Relative *(9.6)(11.4)(37.6)

* % Relative to local index

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Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2014A 1.9 (8.0) (7.6) (2.6) N/A N/A
2015A 4.0 (32.8) (44.7) 3.6 7.3 N/A
2016E 7.8 134.0 122.9 26.8 1.0 N/A
2017E 11.1 (3.9) (18.1) (4.1) N/A N/A

Last updated on 22/02/2017

Latest research

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

Beach Energy acquisition

Update | Oil & Gas | 07/09/2015

Sea Lion development supports core upside

Initiation | Oil & Gas | 17/07/2015

Fans of the Falklands

Outlook | Oil & Gas | 08/11/2011

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 a similar magnitude (according to management estimates). This resource base (over which RKH holds a >50% working interest) is significant on a global scale and commercially attractive given the cost reductions achieved through the FEED process so far – the project is NPV10 break-even at $45/bbl. Although the timing of project sanction is uncertain (particularly given the financial constraints of its partner, PMO), the fiscal regime and resource base makes this a compelling long-term project. RKH also holds production and exploration assets in Egypt and Italy, with combined volumes of over 1.3mboed. The resulting net cashflows 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 02/03/2017

Key management

Sam Moody, CEO
Peter Dixon-Clarke, FD
Stewart MacDonald, CFO

Company address

Hilltop Park
Devizes Road
Salisbury
SP3 4UF
United Kingdom
View website