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Hurricane Energy (HUR)

Business description

Hurricane Energy is an E&P focused on fractured basement exploration and development in the West of Shetland region of the UKCS. The company's 100%-owned Lancaster oil discovery (523mmbbl 2P reserves + 2C resources) is targeting first oil in H119.

Stock data

Market cap.£875.5m
Last close44.66p
High / Low (52 weeks)60.0p / 30.5p
Stock market listingLN
Forecast net debt (US$m)114.9
Forecast gearing ratio (%)19
TeamResources - Oil & Gas
SectorOil & gas

Price performance

%1m3m12m
Actual(9.6)11.636.3
Relative *(12.6)7.337.5

* % Relative to local index

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Investment summary

Hurricane Energy is a UK-based E&P focused on hydrocarbon resources in naturally fractured basement reservoirs. Hurricane's CPRs ascribe 2P reserves + 2C gross 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. The FPSO is currently waiting for a weather window opportunity to complete the buoy hook-up operation and start end-to-end commissioning. First oil remains scheduled for H119. We recently updated our valuation to reflect the terms of the Spirit Energy farm-in to the Greater Warwick Area, driving our RENAV to 102.8p/share.

Last updated on 01/02/2019

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) 0.1 575.5 N/A
2017A 0.0 (14.6) (7.0) (0.4) N/A N/A
2018E 0.0 (4.7) (12.3) (0.6) N/A N/A
2019E 128.4 43.2 1.1 0.1 575.5 39.4

Last updated on 30/01/2019

Latest video

Executive interview - Hurricane Energy

Industry outlook

The Lancaster EPS development is forecast to generate a point-forward IRR of c 40% based on our $70/bbl long term Brent commodity price assumption.

Last updated on 01/02/2019

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