CNE LN

Cairn Energy PLC

Energy, Event Driven/Special Sit


Presented:12/07/2021
Price:£1.85
Cap:$1.41B
Current Price:£2.13
Cap:$0.23B

Presented

Date12/07/2021
Price£1.85
Market Cap$1.41B
Ent Value$0.73B
P/E Ratio16.25x
Book Value£1.18
Div Yield0%
Shares O/S493.62M
Ave Daily Vol1,605,295
Short IntN/A

Current

Price£2.13
Market Cap$0.23B
Cairn Energy Plc engages in the exploration, development, and production of oil and gas properties. It operates through the following segments: Senegal, UK (United Kingdom) & Norway and International. The Senegal segment focuses to have a government-approved exploitation plan. The UK & Norway segment includes exploration activities in the North Sea, Norwegian Sea, and Barents Sea as well as management of the group's producing assets in the UK North Sea. The International segment consists of all other regions where the firm currently holds exploration licenses such as Mexico, Ireland, Western Sahara, and the Mediterranean. The company was founded by William Benjamin Bowring Gammell in 1980 and is headquartered in Edinburgh, the United Kingdom.

Publicly traded companies mentioned herein: Cairn Energy PLC (CNE LN), Royal Dutch Shell PLC (RDSA NA)

Highlights

The presenter is long shares of Cairn Energy PLC (CNE LN), an oil & gas company based in the UK which has a tax-free $1.1B judgement against India that he expects to be realized in January or February. This $1.1B judgement is approximately equal to CNE’s market cap (£900MM), allowing investors to essentially receive the rest of the business for free. He is essentially viewing this as a $1.1B price for a company worth $2B, $1.5B of which is cash, and CNE will return $700MM to shareholders in the near term. 

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Idea Discussion

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