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GKP

Gulf Keystone Petroleum LSE:GKP Stock Report

Last Price

UK£2.47

Market Cap

UK£533.9m

7D

-5.4%

1Y

32.9%

Updated

03 Jul, 2022

Data

Company Financials +
GKP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends3/6

GKP Stock Overview

Gulf Keystone Petroleum Limited engages in the exploration, evaluation, and production of oil and gas properties in the Kurdistan Region of Iraq and the United Kingdom.

Gulf Keystone Petroleum Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Gulf Keystone Petroleum
Historical stock prices
Current Share PriceUK£2.47
52 Week HighUK£3.21
52 Week LowUK£1.39
Beta1.72
1 Month Change-14.09%
3 Month Change-0.20%
1 Year Change32.94%
3 Year Change12.53%
5 Year Change160.00%
Change since IPO-95.59%

Recent News & Updates

Shareholder Returns

GKPGB Oil and GasGB Market
7D-5.4%0.6%-1.1%
1Y32.9%1.9%-9.7%

Return vs Industry: GKP exceeded the UK Oil and Gas industry which returned 1.9% over the past year.

Return vs Market: GKP exceeded the UK Market which returned -9.7% over the past year.

Price Volatility

Is GKP's price volatile compared to industry and market?
GKP volatility
GKP Average Weekly Movement6.8%
Oil and Gas Industry Average Movement8.6%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

Stable Share Price: GKP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GKP's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2001390Jon Harrishttps://www.gulfkeystone.com

Gulf Keystone Petroleum Limited engages in the exploration, evaluation, and production of oil and gas properties in the Kurdistan Region of Iraq and the United Kingdom. The company operates Shaikan field that covers an area of 280 square kilometers, which is located north-west of Erbil. It also provides management, support, geological, geophysical, and engineering services.

Gulf Keystone Petroleum Fundamentals Summary

How do Gulf Keystone Petroleum's earnings and revenue compare to its market cap?
GKP fundamental statistics
Market CapUS$642.27m
Earnings (TTM)US$164.60m
Revenue (TTM)US$301.39m

3.9x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GKP income statement (TTM)
RevenueUS$301.39m
Cost of RevenueUS$111.72m
Gross ProfitUS$189.67m
Other ExpensesUS$25.07m
EarningsUS$164.60m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.76
Gross Margin62.93%
Net Profit Margin54.61%
Debt/Equity Ratio19.0%

How did GKP perform over the long term?

See historical performance and comparison

Dividends

23.5%

Current Dividend Yield

45%

Payout Ratio

Does GKP pay a reliable dividends?

See GKP dividend history and benchmarks
When do you need to buy GKP by to receive an upcoming dividend?
Gulf Keystone Petroleum dividend dates
Ex Dividend DateJul 14 2022
Dividend Pay DateJul 29 2022
Days until Ex dividend10 days
Days until Dividend pay date25 days

Does GKP pay a reliable dividends?

See GKP dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is GKP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GKP?

Other financial metrics that can be useful for relative valuation.

GKP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA2.5x
PEG Ratio-0.4x

Price to Earnings Ratio vs Peers

How does GKP's PE Ratio compare to its peers?

GKP PE Ratio vs Peers
The above table shows the PE ratio for GKP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.2x
SEPL Seplat Energy
5.2x4.4%UK£534.5m
INDI Indus Gas
21.3xn/aUK£448.3m
ENQ EnQuest
1.3x-13.9%UK£410.8m
CNE Capricorn Energy
0.9x-63.9%UK£659.5m
GKP Gulf Keystone Petroleum
3.9x-9.1%UK£533.9m

Price-To-Earnings vs Peers: GKP is good value based on its Price-To-Earnings Ratio (3.9x) compared to the peer average (7.2x).


Price to Earnings Ratio vs Industry

How does GKP's PE Ratio compare vs other companies in the GB Oil and Gas Industry?

Price-To-Earnings vs Industry: GKP is good value based on its Price-To-Earnings Ratio (3.9x) compared to the UK Oil and Gas industry average (8.4x)


Price to Earnings Ratio vs Fair Ratio

What is GKP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GKP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.9x
Fair PE Ratio7.4x

Price-To-Earnings vs Fair Ratio: GKP is good value based on its Price-To-Earnings Ratio (3.9x) compared to the estimated Fair Price-To-Earnings Ratio (7.4x).


Share Price vs Fair Value

What is the Fair Price of GKP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GKP (£2.47) is trading below our estimate of fair value (£2.72)

Significantly Below Fair Value: GKP is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: GKP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Gulf Keystone Petroleum forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-9.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GKP's earnings are forecast to decline over the next 3 years (-9.1% per year).

Earnings vs Market: GKP's earnings are forecast to decline over the next 3 years (-9.1% per year).

High Growth Earnings: GKP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GKP's revenue (2.5% per year) is forecast to grow slower than the UK market (4.2% per year).

High Growth Revenue: GKP's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GKP's Return on Equity is forecast to be high in 3 years time (29%)


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Past Performance

How has Gulf Keystone Petroleum performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-10.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GKP has high quality earnings.

Growing Profit Margin: GKP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GKP has become profitable over the past 5 years, growing earnings by -10.6% per year.

Accelerating Growth: GKP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GKP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (377.8%).


Return on Equity

High ROE: GKP's Return on Equity (31.5%) is considered high.


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Financial Health

How is Gulf Keystone Petroleum's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GKP's short term assets ($355.1M) exceed its short term liabilities ($98.8M).

Long Term Liabilities: GKP's short term assets ($355.1M) exceed its long term liabilities ($143.8M).


Debt to Equity History and Analysis

Debt Level: GKP has more cash than its total debt.

Reducing Debt: GKP's debt to equity ratio has reduced from 21.8% to 19% over the past 5 years.

Debt Coverage: GKP's debt is well covered by operating cash flow (180.1%).

Interest Coverage: GKP's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet


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Dividend

What is Gulf Keystone Petroleum current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


23.49%

Current Dividend Yield

Upcoming Dividend Payment

TodayJul 03 2022Ex Dividend DateJul 14 2022Dividend Pay DateJul 29 202215 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: GKP's dividend (23.49%) is higher than the bottom 25% of dividend payers in the UK market (1.89%).

High Dividend: GKP's dividend (23.49%) is in the top 25% of dividend payers in the UK market (5.29%)


Stability and Growth of Payments

Stable Dividend: GKP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GKP's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.5%), GKP's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (122.8%), GKP's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Jon Harris (56 yo)

1.5yrs

Tenure

US$1,187,578

Compensation

Mr. Jon R. Harris, MEng (Fuels and Energy Engineering), has been Chief Executive Officer and Director of Gulf Keystone Petroleum Limited since January 18, 2021. He has experience in the oil and gas industr...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD1.19M) is about average for companies of similar size in the UK market ($USD1.32M).

Compensation vs Earnings: Insufficient data to compare Jon's compensation with company performance.


Leadership Team

Experienced Management: GKP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: GKP's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gulf Keystone Petroleum Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Gulf Keystone Petroleum Limited
  • Ticker: GKP
  • Exchange: LSE
  • Founded: 2001
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: UK£533.884m
  • Shares outstanding: 216.15m
  • Website: https://www.gulfkeystone.com

Number of Employees


Location

  • Gulf Keystone Petroleum Limited
  • Cedar House
  • 3rd Floor
  • Hamilton
  • HM 12
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.