Sign up
Oil Capital

'Balanced' Cairn Energy upgraded by RBC

Rating now outperform while new price target points to 30% upside
picture of oil rig
North Sea to come onstream this year

Cairn Energy PLC (LON:CNE) has been upgraded by RBC, which believes the oiler will soon be self-funding.

This year, 2017, should see Cairn progress to become a  balanced E & P business, adds the Canadian broker.

Kraken (Cairn 29.5%) and Catcher (20% Cairn) in the North Sea are expected to come onstream later this year with net plateau production in 2018 of 20–25,000b/d (barrels per day).

Majors such as Total buying into fields in Africa, meanwhile, have highlighted the value of the 2.7bnbbl SNE deepwater field in Senegal (40% Cairn and operator), which shares many similar characteristics.

The conclusion of the upcoming SNE-6 interference test should crystallize industry interest believes RBC.

Deal flow could create the potential for shareholder returns worth 40–80p/share, adds RBC, which has a price target of 270p (from 250p)  and outperform rating.

Cairn shares rose 1% to 208.2p.

PhilW.jpg


Register here to be notified of future CNE Company articles
View full CNE profile

Cairn Energy PLC Timeline

View All

Related Articles

Solar and conventional energy

Premier Holding powering up

The model for energy services supplier Premier Holding is coming together with the addition of a power supplier to its list of subsididiaries

© oil Capital 2017

Oil Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed oil companies to interact with institutional and highly capitalised investors.
Headquartered in London, Oil Capital is led by a team of Europe's leading analysts and journalists, publishing daily content, covering all key movements in the Technology market.