II Editor
10 Mar 2015
NEW ARTICLE: Cairn Energy sell-off overdone "With no income to offset spending, LSE:CNE:Cairn Energy's losses were always going to be big. But it has at least managed to halve the deficit and industry expert Malcolm Graham-Wood thinks the shares could be undervalued, especially with the oil ..."[link]
Bubsy the cat
10 Mar 2015
Malcy's Blog - 10/3/2015 Cairn EnergyFigures today from Cairn which show that last year the world class discovery in Senegal was a game changer for the company. Having said that the company reacted fast to the fall in oil prices with a 40% headcount reduction despite the company being busy in Africa, on Kraken and Catcher and having the distraction of India into the bargain. Senegal is clearly going to be were the company concentrates this year and over the next year or so they plan three firm wells, three options and a 3D seismic shoot. Cairn has net cash of $869m and an undrawn RBL facility of $575m which will cover the 2105 exploration budget of $185m and development capex on Catcher and Kraken of $590m between now and 2017. then I expect free cash flow from those developments, India is an unknown so not worth speculating on but the company remain unrepentant. Cairn was one of the first on the notepad for the bucket list primarily due to Senegal but also due to the fact that the company is in a strong cash position, its current developments will enable it to take advantage of significantly reduced industry costs and will benefit should oil prices recover in the longer term. As such it remains a favourite and despite the rally from 143p the stock is significantly undervalued. And finally, Happy Birthday to Simon Thomson with whom I thus share the day, albeit him being much younger than me…! - See more at: [link]
The Millipede
17 Jan 2015
Re: Relative performance [link]
Bubsy the cat
14 Jan 2015
Malcy's Blog from yesterday Cairn EnergyAfter the stunning success of the Senegal drilling last year it comes as no surprise that a multi-well evaluation programme of evaluation and exploration in the area is planned for this year. Pleasingly Cairn are fully funded as are its partners to go ahead with this straight away and one hopes that the costs are coming down a bit. The cash position is +$869m and would be greater if the Indian tax dispute wasn’t still going on but this strong position and the find on the Atlantic margin make Cairn one of the most exciting plays in the sector. There is no need for the company to dilute its position and nor should it, its partners appear to be as keen as I am. Elsewhere both Catcher and Kraken are on track for first oil in 2017, again the financial strength of the company enables them to proceed with these developments. Without doubt, Cairn is at the top of the list of stocks going on the bucket list. - See more at: [link]
jaymac3
06 Jan 2015
Re: Relative performance You are quite correct Omaha Man; the comparison is interesting but I had been assuming that it was because Cairn is not currently producing oil by itself - only as a partner with others - in the North Sea for example. This protects them to some degree from the price situation I suppose.Also any more recent finds or developments are years way from actual production so that CNE looks more like a long term investment now rather than its usual exploration mantra. Could that be so?I have lost enough in the last couple of years to make me feel that I might as well hang in there and hope for a settlement in the Indian Tax affair which might cause a short but significant rise in the price and I would then not hesitate to sell and put what's left into another sector's stock which is bucking the current trend.I had hoped for a better year in 2015 for all investors but with the Election looming and more pessimistic comments about the EC, I am not so sure that it might not be worth looking for safer alternatives to consider.All just my own thoughts but no doubt others might think differently.
Omaha man
06 Jan 2015
Relative performance I am surprised how well Cairn has held up in comparison to the overwhelming majority of other oil stocks. Yes it has the support of a recent find, but that will be years away from fruition if it is ever developed. The price now is the same as it was back in August and I don't think you can say the same for any other oil stock.I have opened a short this morning - maybe not expecting the 112 of Lambrini Gril's forecast - as I think a 10-20% fall from here is highly probable.
gforb
15 Dec 2014
Re: Shells tax win in India Don't think so
lambrini girl
15 Dec 2014
Re: Shells tax win in India target 112
Rhino1958
19 Nov 2014
Shells tax win in India Lets hope "Royal Dutch Shell has won a significant victory in its long-running $3 billion battle with India’s revenue authorities, in a judgment with implications for dozens of tax disputes involving multinational companies in Asia’s third-largest economy. "
