The curious case of the Hurricane bid
UKCS producer’s pared-back portfolio appears to tick few boxes
The board of Hurricane Energy, the North Sea upstream firm that aimed to exploit the potential of fractured basement reservoirs, has rejected a 7.7p/share bid for its entire issued share capital but has launched a formal sales process to try to attract a hungrier suitor. Analysts, though, are puzzled as to the attraction of Hurricane in the current UK continental shelf (UKCS) M&A environment. Hurricane argues it is in “a very strong financial and operational position” and that the offer, at a premium of only 13pc above its 6.8p/share 1 November closing price, undervalues the firm. It is debt free, its decommissioning liabilities are fully funded and forecast year-end net free cash is c.$
Also in this section
3 May 2024
Upcoming elections are likely to deliver a win for the party of president Andres Lopez Obrador, but analysts differ over to what degree his successor will stick to his energy policies
2 May 2024
Faster-than-expected economic growth fails to mask macro imbalances and shifting structural oil product trends
1 May 2024
Energean CEO Mathios Rigas looks to results of critical Anchois appraisal well
30 April 2024
While its regional neighbours reap the rewards of oil and gas success, Iraq’s hydrocarbons sector is lagging behind