LONDON, July 2, 2015 /PRNewswire/ --
Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Cairn Energy
Highlights of the analysis on Cairn Energy by Edison's oil & gas analysts Will Forbes, Kim Fustier, Ian McLelland and Elaine Reynolds are as follows:
Cairn is a UK-listed E&P with assets in the UK, Norway, Senegal, Morocco, Mauritania and Greenland. It participates in two UK projects in construction (Catcher and Kraken) and operates three blocks offshore Senegal where it discovered oil in 2014.
Cairn is arguably a lower-risk investment opportunity than E&P peers, as 35% of our 216p/share RENAV and 64% of our 119p/share core NAV sit in its c $700m cash pile (our estimate as of end-June 2015). Unlike many E&Ps, Cairn stands in the comfortable position of being fully funded on its $610m share of development capex and on exploration spend. In the medium term, the key levers for Cairn's stock price are the Senegal E&A campaign, which could add 11-24% to the shares; and an Indian tax resolution, which could theoretically add as much as 30%. Estimated future NAV growth is modest at 9-15% pa; however, this is understandable in view of the stock's lower risk profile.
To download this report, please click here.
All reports published by Edison are available to download free of charge from its website http://www.edisongroup.com.
About Edison: Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support their capital markets activities. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:
For more information please contact:
Will Forbes Edison Investment Research +44(0)20-3077-5749
Kim Fustier Edison Investment Research +44(0)20-3077-5741
Ian McLelland Edison Investment Research +44(0)20-3077-5756
Elaine Reynolds Edison Investment Research +44(0)20-3077-5713
SOURCE Edison Investment Research