AIM:HUR

Stock Analysis Report

Executive Summary

Hurricane Energy plc, together with its subsidiaries, discovers, appraises, and develops oil from fractured basement reservoirs.

Snowflake

Exceptional growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Hurricane Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HUR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

HUR

-1.2%

GB Oil and Gas

-0.2%

GB Market


1 Year Return

10.8%

HUR

3.1%

GB Oil and Gas

4.7%

GB Market

Return vs Industry: HUR exceeded the UK Oil and Gas industry which returned 3.1% over the past year.

Return vs Market: HUR exceeded the UK Market which returned 4.7% over the past year.


Shareholder returns

HURIndustryMarket
7 Day5.3%-1.2%-0.2%
30 Day-0.6%0.5%0.8%
90 Day1.2%5.3%3.7%
1 Year10.8%10.8%8.3%3.1%10.1%4.7%
3 Year5.6%5.6%39.2%21.3%20.9%5.6%
5 Year157.0%157.0%39.6%13.6%32.3%2.2%

Price Volatility Vs. Market

How volatile is Hurricane Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hurricane Energy undervalued compared to its fair value and its price relative to the market?

1.81x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HUR (£0.44) is trading above our estimate of fair value (£0.01)

Significantly Below Fair Value: HUR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HUR is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: HUR is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HUR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HUR is overvalued based on its PB Ratio (1.8x) compared to the GB Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Hurricane Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: HUR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HUR's is expected to become profitable in the next 3 years.

Revenue vs Market: HUR's revenue (35.9% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: HUR's revenue (35.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUR's Return on Equity is forecast to be high in 3 years time (21.4%)


Next Steps

Past Performance

How has Hurricane Energy performed over the past 5 years?

-28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUR has high quality earnings.

Growing Profit Margin: HUR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HUR is unprofitable, and losses have increased over the past 5 years at a rate of -28.1% per year.

Accelerating Growth: Unable to compare HUR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HUR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (24.7%).


Return on Equity

High ROE: HUR has a negative Return on Equity (-1.15%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hurricane Energy's financial position?


Financial Position Analysis

Short Term Liabilities: HUR's short term assets ($163.1M) exceeds its short term liabilities ($96.9M)

Long Term Liabilities: HUR's short term assets ($163.1M) do not cover its long term liabilities (431.7M)


Debt to Equity History and Analysis

Debt Level: HUR's debt to equity ratio (32.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if HUR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: HUR has a high level of physical assets or inventory.

Debt Coverage by Assets: HUR's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HUR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HUR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Hurricane Energy's current dividend yield, its reliability and sustainability?

0.26%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.3%industryaverage5.3%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HUR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HUR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HUR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HUR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HUR's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Hurricane Energy's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average board tenure


CEO

Robert Trice (58yo)

0yrs

Tenure

US$605,000

Compensation

Dr. Robert Trice is Founder of Hurricane Exploration PLC and serves as its Chief Executive Officer. Dr. Trice serves as the Chief Executive Officer of Hurricane Energy plc. Dr. Trice has over 30 years in o ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD775.92K) is below average for companies of similar size in the UK market ($USD1.15M).

Compensation vs Earnings: Robert's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

3.5yrs

Average Tenure

58yo

Average Age

Experienced Board: HUR's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$51,149,98317 Jul 19
Kerogen Capital
EntityCompany
Shares110,000,000
Max PriceUS$0.47
BuyUS$152,30227 Nov 18
Steven McTiernan
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares375,000
Max PriceUS$0.41

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Management Team

  • Alistair Stobie (52yo)

    CFO & Director

    • Tenure: 3.7yrs
    • Compensation: US$444.00k
  • Robert Trice (58yo)

    Founder

    • Tenure: 0yrs
    • Compensation: US$605.00k
  • Neil Platt (55yo)

    COO & Director

    • Tenure: 6.7yrs
    • Compensation: US$446.00k
  • Daniel Jankes

    General Counsel & Company Secretary

    • Tenure: 0yrs

Board Members

  • David Anthony Jenkins (80yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: US$103.00k
  • Alistair Stobie (52yo)

    CFO & Director

    • Tenure: 3.7yrs
    • Compensation: US$444.00k
  • John van der Welle (63yo)

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: US$85.00k
  • Steve McTiernan (68yo)

    Non-Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: US$100.00k
  • Robert Trice (58yo)

    Founder

    • Tenure: 0yrs
    • Compensation: US$605.00k
  • Sandy Shaw (65yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Roy Kelly (58yo)

    Non Executive Director

    • Tenure: 3.5yrs
    • Compensation: US$60.00k
  • Neil Platt (55yo)

    COO & Director

    • Tenure: 6.7yrs
    • Compensation: US$446.00k
  • Jason Cheng (47yo)

    Alternate Director

    • Tenure: 3.5yrs
  • Leonard Tao (38yo)

    Alternate Director

    • Tenure: 3.5yrs

Company Information

Hurricane Energy plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hurricane Energy plc
  • Ticker: HUR
  • Exchange: AIM
  • Founded: 2005
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£881.217m
  • Shares outstanding: 1.99b
  • Website: https://www.hurricaneenergy.com

Number of Employees


Location

  • Hurricane Energy plc
  • The Wharf
  • Ground Floor
  • Godalming
  • Surrey
  • GU7 2QN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HURAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPFeb 2014
HRCX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2014
HUTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2014

Biography

Hurricane Energy plc, together with its subsidiaries, discovers, appraises, and develops oil from fractured basement reservoirs. The company has a portfolio of contiguous offshore licenses on the United Ki ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 21:31
End of Day Share Price2019/11/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.