Cairn Energy PLC

Cairn Energy is an oil and gas exploration and development company. Co. has three groups of business unit: Senegal, which focuses on appraising the discoveries offshore Senegal and to identify further exploration prospects for drilling; U.K and Norway, which includes exploration activities in the North Sea, Norwegian Sea and Barents Sea and management of Co.'s development assets in the U.K. North Sea; and International, which consists of all other regions where Co. holds exploration licenses, including Greenland, Ireland, Morocco, Western Sahara, Mauritania and the Mediterranean. As at Dec 31 2016, Co. had total proved plus probable reserves of 51.5 million barrels of oil equivalent.
  • TickerCNE
  • ISINGB00B74CDH82
  • ExchangeLondon Stock Exchange
  • SectorOil & Gas Producers
  • CountryUnited Kingdom

Analysts

Institutional Initiation: Exposure to Senegal exploration, at lower risk

Cairn’s transformation over the last five years has given birth to a new full-cycle E&P company, with two projects under construction in the UK and a large exploration portfolio in the Atlantic Margin. The jewel in Cairn’s portfolio is Senegal, where it made one of the world’s largest offshore oil discoveries in 2014 (SNE). While the market will be closely watching Cairn’s Senegal drilling campaign starting in Q415, an even more material valuation lever for the stock is the outcome of the $1.6bn Indian tax dispute. In an environment where many independents are struggling to secure funding, Cai...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Producer, developer, explorer

We refresh our view on Cairn Energy, focusing on key areas of interest for investors already familiar with the company. We examine a number of valuation approaches for SNE in Senegal, the potential for reserve upgrades and exploration value. We believe SNE is an outsized asset and assume Cairn seeks to farm-down. This will naturally affect long-term value upside, but would in our view drive a better balance of asset and financial risk. We also examine features of Catcher, Cairn’s cost of capital and look at the Indian tax dispute. After a long period of value stagnation (as cash was invested t...

Exploration setbacks, but shares backed by core

We update our valuation to reflect the Druid and SNE North well results and lower long-term oil price assumption. We look forward to the half-year results on 21 August when Cairn plans to update the market on reserves estimates and the development concept for SNE, which will help to firm up potential value for the field. After adjustments and accounting for our lower long-term oil price assumption, the contingent NAV falls to 196p (from 225p/share).

Jessica Saadat

Cairn Energy

Cairn will release its H117 results on Tuesday, 22nd August. Given Kraken only started production at the end of June, the H1 financials will be relatively meaningless. The key thing to watch out for will be the resource update for SNE, off Senegal. Our RENAV of 225p currently includes 85p for SNE, based on 2C resources of c470mmbbls (gross) for SNE, risked at 65% CoS. We include another 11p risked for 3C/exploration upside. Given an extremely attractive valuation, and potential material upside, we retain Cairn as our top pick.

Jessica Saadat

UK E&P - Increasing oil prices

In this short note we update our oil price deck, to bring it more inline with consensus. Although we still believe there may be the “shale ceiling”, we believe the risk that Brent crude falls below $50/bbl again has diminished substantially. Whilst there has been a lot of recent speculation around EVs and peak demand, we see upside risk to the oil price in the short to medium term, and as such we believe many of the E&P names, which have production profiles peaking in that time frame, are well placed to exploit this timing, without suffering the longer term strategic issues Big Oil may face.

Institutional Initiation: Exposure to Senegal exploration, at lower risk

Cairn’s transformation over the last five years has given birth to a new full-cycle E&P company, with two projects under construction in the UK and a large exploration portfolio in the Atlantic Margin. The jewel in Cairn’s portfolio is Senegal, where it made one of the world’s largest offshore oil discoveries in 2014 (SNE). While the market will be closely watching Cairn’s Senegal drilling campaign starting in Q415, an even more material valuation lever for the stock is the outcome of the $1.6bn Indian tax dispute. In an environment where many independents are struggling to secure funding, Cai...

Producer, developer, explorer

We refresh our view on Cairn Energy, focusing on key areas of interest for investors already familiar with the company. We examine a number of valuation approaches for SNE in Senegal, the potential for reserve upgrades and exploration value. We believe SNE is an outsized asset and assume Cairn seeks to farm-down. This will naturally affect long-term value upside, but would in our view drive a better balance of asset and financial risk. We also examine features of Catcher, Cairn’s cost of capital and look at the Indian tax dispute. After a long period of value stagnation (as cash was invested t...

Exploration setbacks, but shares backed by core

We update our valuation to reflect the Druid and SNE North well results and lower long-term oil price assumption. We look forward to the half-year results on 21 August when Cairn plans to update the market on reserves estimates and the development concept for SNE, which will help to firm up potential value for the field. After adjustments and accounting for our lower long-term oil price assumption, the contingent NAV falls to 196p (from 225p/share).

Jessica Saadat

Cairn Energy

Cairn will release its H117 results on Tuesday, 22nd August. Given Kraken only started production at the end of June, the H1 financials will be relatively meaningless. The key thing to watch out for will be the resource update for SNE, off Senegal. Our RENAV of 225p currently includes 85p for SNE, based on 2C resources of c470mmbbls (gross) for SNE, risked at 65% CoS. We include another 11p risked for 3C/exploration upside. Given an extremely attractive valuation, and potential material upside, we retain Cairn as our top pick.

Jessica Saadat

Cairn Energy

Cairn has upgraded its resource estimates for SNE in its H1 results today, by c19% from 473mmbls to 563mmbls. Our RENAV of 225p currently includes 85p for SNE, based on 2C resources of c470mmbbls (gross) for SNE, risked at 65% CoS, so we would expect to increase our RENAV following today’s announcement. We do not yet include any value either for the >1TCF of potential gas resources associated with Senegal. We continue to believe Cairn looks very undervalued.

2 directors bought/maiden bought

Two Directors at Cairn Energy bought 25,000 shares at between 162p and 175p. The significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The na...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Philip Morrish

Value Indicator - UK Basic Resources 23072018

Currently '(TM) Value Indicator - UK Basic Resources' is a value analysis of the Basic Resources super sector of quoted companies of The London Stock Exchanges Main market that provides the user with indicative longer-term target prices. The publication is also available on request at www.intellisys.uk.com

Philip Morrish

Value Indicator - UK Main Market 23072018

Currently '(TM) Value Indicator - UK Main market' is a value analysis of the Basic Resources, Construction & Materials, Telecoms and Utilities sectors of quoted companies on The London Stock Exchange's Main market that provides the user with indicative longer-term trading indicative target prices. The publication is also available on request at www.intellisys.uk.com

Philip Morrish

Value Indicator - UK Main Market 30072018

Currently '(TM)Value Indicator - Main market' is a value analysis of the Basic Reslources, Construction & Materials, Telecoms and Utilities sectors of the quoted companies on The London Stock Exchange's Main market that provides the user with indicative long-term trading indicators and indicative target prices. The publication is also available on request at www.intellisys.uk.com

Philip Morrish

Value Indicator - UK Basic Resources 30072018

Currently '(TM) Value Indicator - UK Basic Resources Sector' is a value analysis of the Basic Resources super sector of quoted companies on The London Stock Exchange's Main market that provides the user with indicative long-term target proces. The publication is also available on request at www.intellisys.uk.com

Cairn Energy Plc (CNE) - Oil & Gas - Deals and Alliances Profile

Summary Cairn Energy PLC (Cairn Energy) is an independent oil and gas exploration and production group. it is focused on exploration opportunities with transformational potential within a balanced portfolio of lower risk exploration and development assets. The group through its subsidiaries holds interests in various oil and gas assets. The group has assets in North Sea, Norwegian Sea, Barents Sea, offshore Senegal, Ireland, Morocco, and Malta. The group also has 10% interest in Cairn India Limited. It has operational offices in London, the UK; Stavanger, Norway; and Dakar, Senegal. Cairn Ene...

MarketLine Department

Serica Energy Plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's Serica Energy Plc Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Serica Energy Plc since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage. Key...

MarketLine Department

Premier Oil plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's Premier Oil plc Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Premier Oil plc since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage. Key Hig...

MarketLine Department

San Leon Energy Plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's San Leon Energy Plc Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by San Leon Energy Plc since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage. ...

MarketLine Department

TomCo Energy PLC - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's TomCo Energy PLC Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by TomCo Energy PLC since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage. Key H...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch