An Update on One FTSE 250 Listed Energy Stock: Capricorn Energy

Capricorn Energy PLC

Capricorn Energy PLC (LON: CNE) is an FTSE 250 index listed company engaged in the exploration and production of Oil & Gas. CNE operates across three broad geographic divisions: UK & Norway, Senegal and International. The Company was previously named as Cairn Energy PLC.

FY21 Financial Highlights (for the full year ending 31 December 2021, as of 08 March 2022)

• Net Cash Position: CNE had reported a net cash of USD 133 million as of 31 December 2021.
• Operating Loss: The Company had shown an operating loss of USD 131 million during FY21 from continuing operations.
• Production Guidance: The WI production is expected to be ranging from 37,000 boepd to 43,000 boepd (“barrels of oil equivalents per day) during FY22.

Recent Developments

Tender Offer: As announced on 24 February 2022, CNE has received a tax refund from the Government of India of approximately USD 1.06 billion. The Company has decided to distribute Capital return of USD 500 million through a tender offer to close in April 2022, alongside ongoing share repurchase programme of up to USD 200 million.

The Tender Offer will be open to all eligible Capricorn shareholders from 08 March 2022 to 05 April 2022. The shareholders can select VWAP (volume-weighted average price) based price in the five trading days up to and including the closing date of the Tender Offer. The price will be ranging from VWAP (minimum) to 5% premium over the VWAP-based price (maximum). Meanwhile, the Company will return remainder to the shareholders in the form of a special dividend in case CNE does not receive sufficient take-up of the Tender Offer.

The expected timetable of list of events is highlighted below –

(Source: LSE Website)

One Year Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

A tender offer is put together if a prospective buyer makes an offer to the current shareholders to buy some or all their shares in a company at a specific price. A company may decide to make a tender offer to the current shareholders to buy back a certain quantity of its own shares to increase its equity interest and to offer additional return to shareholders. The existing shareholders may apply as per the above tender offer details and schedule provided by CNE, while the results of the offer and strike price will be announced as on 6th April 2022.

Capricorn Energy PLC was trading at the current price of GBX 220.80 (as of 24 March 2022, at 11:03 AM GMT). The stock made a 52-week high and low of GBX 223.60 and GBX 122.00, respectively.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.  

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Dividend Yield may vary as per the stock price movement.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

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