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.£102.4m
Last close22.40p
High / Low (52 weeks)27.7p / 18.5p
Stock market listingLN
Forecast net cash (US$m)51.3
Forecast gearing ratio (%)N/A
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual(13.5)(4.7)(2.6)
Relative *(8.3)(2.7)(3.2)

* % Relative to local index

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Company news

Rockhopper Exploration: A multi-bagger, or just running out of cash?

Wed, 14 Sep 2016 12:05:31 GMT

Oil and gas explorer Rockhopper in legal fight with Italy

Thu, 23 Mar 2017 15:45:00 GMT

Rockhopper Exploration shares rise on Falkland project progress

Thu, 11 Jan 2018 10:30:00 GMT

Rockhopper eyes Sea Lion sanction in 2018 as funding talks continue

Wed, 14 Jun 2017 07:40:14 GMT

Rockhopper Exploration says progressing Sea Lion is the main focus for rest of ...

Thu, 07 Sep 2017 07:22:33 GMT

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2015A 4.0 (32.8) (44.7) N/A N/A N/A
2016A 7.4 (15.2) (18.5) N/A N/A N/A
2017E 9.8 (2.5) (14.1) N/A N/A N/A
2018E 8.1 0.0 (16.0) N/A N/A 386.2

Last updated on 23/01/2018

Latest research

Investment summary

Rockhopper holds c 50% of the Sea Lion field in the Falklands, one of the largest undeveloped fields globally. With gross contingent 2C reserves of 517mmbbl (and 900mmbbl 3C), the phased development of the fields has been delayed by a number of factors. However, with costs falling to produce an NPV10 break-even of less than $45/bbl and a more solid funding solution becoming apparent over the last six months, a final investment decision is being targeted in 2018. A mix of export credit financing, vendor financing and equity was assumed in our valuation, which ranges from a core NAV of 44p/share (Phase 1 risked at 20% COS) to 81p/share (Phase 1 at 50% COS).

Last updated on 02/02/2018

Industry outlook

Small and mid-cap E&Ps have struggled in recent years to secure funding to develop major oil and gas projects. In response, the Sea Lion JV is considering export credit finance and vendor/contractor finance as an alternative funding route for field development.

Last updated on 02/02/2018

Key management

Sam Moody, CEO
Stewart MacDonald, CFO

Company address

Hilltop Park
Devizes Road
Salisbury
SP3 4UF
United Kingdom
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