Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CAIRN ENERGY PLC. We currently have 26 research reports from 3 professional analysts.
|30Nov16 10:00||RNS||Total Voting Rights|
|24Nov16 03:49||RNS||Holding(s) in Company|
|02Nov16 03:56||RNS||Total Voting Rights|
|04Oct16 09:13||RNS||Holding(s) in Company|
|03Oct16 09:24||RNS||Holding(s) in Company|
|30Sep16 11:35||RNS||Total Voting Rights|
|27Sep16 03:54||RNS||Holding(s) in Company|
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Research reports on
CAIRN ENERGY PLC
CAIRN ENERGY PLC
FAR (FAR AU) INCREASES RESOURCES IN SENEGAL
23 Aug 16
Market reaction: neutral. While an increase is fundamentally good news, Cairn reported last week a much more conservative estimate of 473 mmbl for 2C Contingent Resources that was also including the results of the two latest wells. We note that Cairn Energy is the operator of the block.
Increasing Senegal resources
16 Aug 16
Senegal 2C contingent oil resources have been increased to 473mbbl (vs. 385mbbl previously). The third phase of the drilling programme should start in Q4 16-Q1 17 (further evaluation of SNE), benefiting from low rig rates. At the same time, conceptual development is underway. North Sea: remaining development capex at $315m (H2 16 to be FCF positive by end-2017), o/w Kraken $215m, Catcher $100m, and $110m in H2 16, $205m in 2017. Kraken should come onstream in April 2017 (plateau at 50kboe/d, net c. 15kboe/d, $100m cash flow at $44/bbl – forward curve); Catcher in H2 17 (ramp-up in 2018).
NOTES FROM 1H16 RESULTS
16 Aug 16
Overall, with lower costs and increased resources, the story is better this morning than it was yesterday. This is a steady ship with no funding concerns; however the shares do not really offer value in our view except if one assumes a resolution of the Indian tax litigation in Cairn's favour. Of note, costs seem to keep going down at Kraken and Catcher. Without surprise the resources size at SNE is also growing albeit, to a much more muted level compared to the numbers reported by Far/Woodside; with the main difference continuing to be associated with recovery factor in the shallower sands. Estimates for SNE development costs have also gone down by about 25%, with the opex range being narrowed and production plateau slightly increased.
READ THROUGH VALUE OF WOODSIDE PETROLEUM (WPL AU)/CONOCOPHILLIPS (COP US) TRANSACTION IN LINE WITH OUR VALUATION
14 Jul 16
Market reaction: while this is neutral to our transaction, some investors might be disappointed by the read through valuation, which implies only US$2.93/bbl of 2C Resources based on our 420 mmbbl 2C resources estimates and U$2.23/bbl on Woodside's. The transaction also implies US$184 mm for FAR's 15% WI on the block, which compares to the Company's market cap of about US$255 mm. In light of this transaction we continue seeing Cairn's shares as being overvalued. More positively, the divestment of Conoco's stake to a more motivated large Company eliminates uncertainty. It however might slowdown operational decisions until the transaction is closed
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Raising Target Price to 2,500p per share
01 Nov 16
Royal Dutch reported clean EPS of US$0.35, nearly 50% ahead of consensus. More importantly, cash flow jumped QoQ to US$8.5bn which should go a long way to confirming Shell’s capacity to maintain the current dividend, despite the increase in gearing to 29.2%. Upstream returned to profitability on an underlying basis for the first time since 1Q15. We believe these results confirm our view that Shell’s dividend can and will be maintained at US$0.47 per quarter and we increase our Target Price to 2,500p per share, given further sterling weakness.