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Hurricane Energy (HUR)

Business description

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

Stock data

Market cap.£996.4m
Last close50.85p
High / Low (52 weeks)55.5p / 24.0p
Stock market listingLN
Forecast net debt (US$m)58804
Forecast gearing ratio (%)9
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual12.429.969.5
Relative *11.524.263.1

* % Relative to local index

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Company news

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) 0.1 676.8 N/A
2017A 0.0 (14.6) (7.0) (0.4) N/A N/A
2018E 0.0 (15.0) (25.8) (1.3) N/A N/A
2019E 115.0 14.8 (28.0) (1.4) N/A 3.0

Last updated on 26/06/2018

Investment summary

Hurricane Energy is a UK-based E&P focused on hydrocarbon resources in naturally fractured basement reservoirs. Hurricane's recent CPR highlighted 2P reserves + 2C 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. Xmas Trees were recently installed on the two existing wells, which are now undergoing completion operations and the buoy for the turret mooring system arrived in the Shetland Isles in June. First-oil remains scheduled for H119. Our last published valuation stands at RENAV 81.0p/share, including a Lancaster EPS-only valuation of 34.7p/share based on a long-term (2022) oil price assumption of $70/bbl Brent.

Last updated on 29/06/2018

Industry outlook

Lancaster EPS development benefits from the recent recovery in Brent crude and is forecast to generate a point-forward IRR of c 40% based on our commodity price assumptions.

Last updated on 29/06/2018

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
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