LSE:GKP

Stock Analysis Report

Gulf Keystone Petroleum

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Gulf Keystone Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

LSE:GKP

3.8%

GB Oil and Gas

1.6%

GB Market


1 Year Return

-16.9%

LSE:GKP

3.0%

GB Oil and Gas

-0.08%

GB Market

GKP underperformed the Oil and Gas industry which returned 3% over the past year.

GKP underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.1% over the past year.


Share holder returns

GKPIndustryMarket
7 Day0%3.8%1.6%
30 Day-3.0%8.4%4.6%
90 Day7.0%-0.2%-0.1%
1 Year-14.8%-16.9%7.9%3.0%4.7%-0.08%
3 Year17.6%14.7%47.1%29.6%21.8%7.3%
5 Year-96.6%-96.6%21.4%0.6%30.7%3.1%

Price Volatility Vs. Market

How volatile is Gulf Keystone Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gulf Keystone Petroleum undervalued based on future cash flows and its price relative to the stock market?

8.82x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Gulf Keystone Petroleum's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Gulf Keystone Petroleum's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Gulf Keystone Petroleum is overvalued based on earnings compared to the GB Oil and Gas industry average.

Gulf Keystone Petroleum is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Gulf Keystone Petroleum is good value based on expected growth next year.


Price Based on Value of Assets

Gulf Keystone Petroleum is overvalued based on assets compared to the GB Oil and Gas industry average.


Next Steps

Future Growth

How is Gulf Keystone Petroleum expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Gulf Keystone Petroleum's revenue is expected to grow significantly at over 20% yearly.

Gulf Keystone Petroleum's earnings are expected to grow significantly at over 20% yearly.

Gulf Keystone Petroleum's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Gulf Keystone Petroleum's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Gulf Keystone Petroleum's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Gulf Keystone Petroleum will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

52.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Gulf Keystone Petroleum has delivered over 20% year on year earnings growth in the past 5 years.

Gulf Keystone Petroleum's 1-year earnings growth exceeds its 5-year average (92.5% vs 52.4%)

Gulf Keystone Petroleum's earnings growth has exceeded the GB Oil and Gas industry average in the past year (92.5% vs 53.1%).


Return on Equity

Gulf Keystone Petroleum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Gulf Keystone Petroleum used its assets more efficiently than the GB Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Gulf Keystone Petroleum has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Gulf Keystone Petroleum's financial position?


Financial Position Analysis

Gulf Keystone Petroleum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Gulf Keystone Petroleum's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Gulf Keystone Petroleum's level of debt (18.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (93.4% vs 18.6% today).

Debt is well covered by operating cash flow (155.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4x debt.


Next Steps

Dividend

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

3.81%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Gulf Keystone Petroleum before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Unable to evaluate Gulf Keystone Petroleum's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Gulf Keystone Petroleum's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Gulf Keystone Petroleum has not reported any payouts.

Unable to verify if Gulf Keystone Petroleum's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Gulf Keystone Petroleum has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6.1x coverage).


Next Steps

Management

What is the CEO of Gulf Keystone Petroleum's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Jón Ferrier (61yo)

4.3yrs

Tenure

US$973,000

Compensation

Mr. Jón Ferrier has been the Chief Executive Officer of Gulf Keystone Petroleum Limited since June 2015. Mr. Ferrier served as the Head of Business Development & Strategy at Mærsk Olie Og Gas A/S and also  ...


CEO Compensation Analysis

Jón's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Jón's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

52yo

Average Age

The tenure for the Gulf Keystone Petroleum management team is about average.


Board Age and Tenure

2.9yrs

Average Tenure

54yo

Average Age

The average tenure for the Gulf Keystone Petroleum board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Nadhim Zahawi (52yo)

    Chief Strategy Officer

    • Tenure: 4.1yrs
  • Alasdair Robinson

    Legal Director & Company Secretary

    • Tenure: 2.3yrs
  • Jane Barker

    HR Director

    • Tenure: 3.2yrs
  • Stuart Catterall

    Chief Operating Officer

    • Tenure: 2.7yrs
  • Jón Ferrier (61yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$973.00k
  • Sami Zouari (46yo)

    CFO & Director

    • Tenure: 4.7yrs
    • Compensation: US$667.00k
  • Nadzeya Kernoha

    Head of Finance

    • Tenure: 0.7yrs

Board Members

  • Garrett Soden (45yo)

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: US$80.00k
  • Martin Angle (69yo)

    Senior Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$42.00k
  • Dave Thomas (62yo)

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: US$90.00k
  • Jaap Huijskes (54yo)

    Non-Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: US$159.00k
  • Kimberley Wood (49yo)

    Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: US$18.00k
  • Jón Ferrier (61yo)

    CEO & Director

    • Tenure: 4.3yrs
    • Compensation: US$973.00k
  • Sami Zouari (46yo)

    CFO & Director

    • Tenure: 4.7yrs
    • Compensation: US$667.00k

Company Information

Gulf Keystone Petroleum Limited's company bio, 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
  • Market Cap: UK£532.380m
  • Shares outstanding: 223.22m
  • Website: https://www.gulfkeystone.com

Number of Employees


Location

  • Gulf Keystone Petroleum Limited
  • Cumberland House
  • 9th Floor
  • Hamilton
  • HM 11
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GKPLSE (London Stock Exchange)COM SHS USD1.00 (DI)GBGBPNo data
GUKY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2004
GKPLSE (London Stock Exchange)YesCommon SharesGBGBPSep 2004
GVPDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2004
GKPLBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBGBPSep 2004
GFKS.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 2008

Biography

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’s principal asset is Sha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 20:34
End of Day Share Price2019/09/17 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.