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Cairn Energy

June 2020

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CNE
  • Price:
  • 113p
Cairn Energy is one of the few oil & gas independents to be sitting pretty at a time when oil prices are sitting on their uppers. That’s largely because it holds cash, adjusted to include the sale of its Norwegian subsidiary for US$255m, alongside an un-drawn reserves-based lending facility of US$575m.Also in its favour is that it has hedged 36% of expected average production of 21,000 barrels oil per day from its UK North Sea producing assets at the Catcher and Kraken fields during 2020 at US$62 / barrel, set against all in production costs that are somewhere below US$20 / barrel. Nevertheless, it has quickly enacted a plan to offset the oil price falls including a 23% reduction in capital expenditure (from US ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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