Hurricane Energy (HUR)

Business description

Hurricane Energy is an E&P focused on UKCS fractured basement exploration. It owns 100% of the 523mmbbl (RPS 2P reserves plus 2C resources) Lancaster oil discovery, West of Shetland.

Stock data

Market cap.£582.9m
Last close29.75p
High / Low (52 weeks)67.0p / 24.0p
Stock market listingLN
Forecast net cash (£m)235.2
Forecast gearing ratio (%)N/A
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual0.9(43.9)10.4
Relative *1.5(43.2)2.7

* % Relative to local index

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Company news

Hurricane Energy launches $520m fundraising to develop Lancaster field

Thu, 29 Jun 2017 16:36:32 GMT

Hurricane Energy's big farm-out deal will wait - analyst

Thu, 06 Jul 2017 10:50:34 GMT

Can this 10%+ riser beat Hurricane Energy plc?

Wed, 02 Aug 2017 15:00:46 GMT

Hurricane Energy's can now negotiate from a “place of strength” analyst says

Mon, 03 Jul 2017 14:21:01 GMT

Hurricane Energy still mulling funding options for early production system

Wed, 07 Jun 2017 11:46:51 GMT

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 0.0 (5.4) (5.5) (0.9) N/A N/A
2016A 0.0 (6.5) (4.7) 0.1 297.5 N/A
2017E 0.0 (7.2) (5.7) (0.4) N/A N/A
2018E 0.0 (7.2) (18.1) (0.9) N/A N/A

Last updated on 25/07/2017

Investment summary

Hurricane has raised up to $535m through a $300m equity placing (plus $5m follow-on offer) and a concurrent $220m (with $10m over-allotment) convertible bond offer. Equity is being placed at a price of 32p/share while the convertible offers investors a 7.5% coupon and conversion price of 40p/share – a 25% premium. Confirmation of funding should provide increased confidence in Hurricane’s ability to keep to a H119 first oil target. The fall in Hurricane’s share price over the last two months has led to greater dilution than we had previously anticipated with Edison’s Lancaster NAV falling from 102p/share to 81p/share (c 21%) assuming convertible dilution.

Last updated on 03/08/2017

Industry outlook

Fractured basement is seen as an 'unconventional' play in the UK, although basement reservoirs have been producing for decades. Hurricane has successfully de-risked Lancaster through a multi-well appraisal programme.

Last updated on 03/08/2017

Key management

Dr Robert Trice, CEO
Alistair Stobie, CFO

Company address

The Wharf Abbey Mill Business Park
Lower Eashing
Godalming
Surrey
GU7 2QN
United Kingdom
+44 1483 862 820
View website