Hurricane Energy Share Forecast September 2021 – Time to Buy HUR?
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Shares of the UK-based oil and gas exploration and production company Hurricane Energy PLC (LSE: HUR) is in the green today, at 4.500p as of September 28th (10:10 UTC+1). Hurricane Energy’s share price is again rising after approximately 2 years of decline. After a share price fall that began in 2019, it appears that the organization is now on the rebound. Is the share capable of regaining its previous reputation and preference among shareholders? Let’s take a grasp of what’s going on here.
Hurricane Energy – Technical Analysis
As per the financial statement from Hurricane Energy, the market cap of the oil and gas exploration company is at £70.578 million with total assets worth £335.362M. Total revenue for 2020 was £140.43 million, compared to £133.48 million a year ago.
Oscillators for HUR such as Relative Strength Index (14)(77.097), Stochastic %K (14, 3, 3) (85.784), Commodity Channel Index (20)(239.357), and Average Directional Index (14)(42.332) are indicating a neutral state. Moving averages, on the other hand, such as Exponential Moving Average (10)(3.528), Simple Moving Average (10)(3.412), Exponential Moving Average (20)(3.205), Simple Moving Average (20)(3.070) are all pointing towards buying.
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Recent Developments
The share price collapsed in 2019 due to the standard enthusiasm accompanied by the mediocre results that afflict oil and gas corporations. The share was purchased with the intention of obtaining sustainable results from drilling projects; however, that did not occur. In 2020, a new CEO was announced, with co-founder and former CEO Robert Trice resigning. The impact had already been inflicted for the year, with the 2020 report revealing that the firm was operating at a loss – all of which caused Hurricane Energy’s share to plunge to 2.5p in the early days of 2021.
The company stated earlier this month that it will repurchase a part of its existing convertible debt – around 33 per cent, to be precise. This is beneficial for a number of factors. To begin with, it reassures the fact that the company can finance to do so. Furthermore, repurchasing such bonds eliminates the requirement for future interest expenses as well, since expenditure will be reduced in the long run as a result of this. Hurricane Energy’s share surged upon the disclosure of this announcement.
Another example of improvement comes from the most recent trade update, which revealed that output at the Lancaster plant had returned to pre-shutdown levels. With the interim results barely a month away, it is safe to believe that the business offered a hopeful outlook with this statement. It certainly gives shareholders hope for the future, which may be strengthened by excellent results in the upcoming earnings in October.
Should You Buy Hurricane Energy Shares?
As per the company’s most recent operational update, the P6 well is presently generating an average of 11,467 barrels each day. This allowed it to deliver its 24th cargo, a total of 505,000 barrels, from its Lancaster oil fields in August. The Lancaster field has already manufactured and sold over 10 million barrels of Lancaster oil. In early to mid-October 2021, the next cargo is anticipated to be lifted.
The company’s management has also agreed to buy back 33% of its outstanding convertible bonds, as mentioned above. The bonds were bought back for 78 per cent of their original amount, plus the accumulated interest payable on the offered bonds. To put it another way, debt levels have been considerably reduced. Net free cash has also increased to $144 million from $122 million in July. Hence, for the time being, Hurricane Energy shares seem to be relatively stable and it is safe to presume that the share will rise from here until 2022.
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