Analysts are puzzled as to the attraction of Hurricane in the current UKCS M&A environment
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
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
