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LUNE - Lundin Energy AB News Story

SEK271 -7.0  -2.5%

Last Trade - 4:24pm

Sector
Energy
Size
Large Cap
Market Cap £6.72bn
Enterprise Value £9.19bn
Revenue £2.11bn
Position in Universe 114th / 1835

BUZZ-European oil & gas: "Two's company, three's a crowd" - Jefferies cuts Aker BP

Wed 24th March, 2021 10:06am
** "Two's company, three's a crowd," Jefferies says, keeping
a bullish stance on Lundin Energy  LUNE.ST  and Harbour Energy,
while downgrading its recommendation on Aker BP  AKERBP.OL  
    ** Following an analysis of independent exploration and
production companies under its coverage, the brokerage cuts Aker
BP to "hold" from "buy" as it sees full valuation and strategy &
cashflow becoming constrained by the focus on NOAKA project
development  urn:newsml:reuters.com:*:nL8N2KA147  urn:newsml:reuters.com:*:nL5N2EL1JI
    ** The broker keeps its "buy" rating on Lundin Energy and
Harbour Energy, a company to be created from the merger of
Premier Oil  PMO.L  and private equity owned Chrysaor
 urn:newsml:reuters.com:*:nASN000YUS
    ** It cites strategic advantages in environmental, social,
and governance (ESG) for Lundin Energy, international M&A
exposure for Harbour Energy as well as stronger cashflow for
both 
    ** Jefferies points out that after completion of the Premier
Oil - Chrysaor merger Harbour Energy's production scale will be
equivalent to Lundin Energy and Aker BP - at or over 200,000
boe/d
    ** The broker estimates >11% average free cash flow (FCF)
yield 2021-2025 for both Harbour Energy and Lundin Energy,
almost double Aker BP's 6% level because of the material capex
expected for Aker BP's NOAKA project
    

 ((marta.frackowiak@thomsonreuters.com))
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