KAR – Morgans rates the stock as Add
Add-rated Karoon Energy is the broker's top small-cap pick in the sector and the target rises to $3.15 from $2.70.
Read More
Karoon Energy Ltd (Karoon) is a global oil and gas exploration and production company headquartered in Melbourne, Australia, with country offices in Brazil and Peru.
Karoon was listed on the Australian Securities Exchange (‘ASX’) on 8th June 2004 (ASX code: KAR) with a market capitalisation of A$8 million. Since listing, Karoon has acquired a global portfolio of oil and gas exploration assets.
Karoon was founded as an exploration led company, looking for unique opportunities containing large potential and proven targets in basins with proven petroleum systems. Through this strategy, Karoon strives to create shareholder value, by first applying its geographical and geotechnical expertise to identify valuable early stage acreage, then leverage high equity interests to explore and appraise and finally commercialise opportunities while retaining meaningful equity interests in the assets as they go into production.
This strategy proved successful, as shortly after listing Karoon made its first significant strategic move and acquired acreage in one of Australia’s emerging LNG provinces, the Browse Basin. Over the next decade the Browse region saw an unprecedented level of LNG activity, during which time Karoon discovered the multi-TCF Poseidon gas discovery 2009. Poseidon was subsequently sold by Karoon during June 2014 for US$600 million, and a contingent milestone consideration of up to US$200 million.
Add-rated Karoon Energy is the broker's top small-cap pick in the sector and the target rises to $3.15 from $2.70.
Read More
The Add rating is unchanged and the target price is increased to $1.90 from $1.80.
Read More
Karoon Energy released quarterly results showing production from Bauna of 15.6kbopd, which was around 5% ahead of Morgans estimate.
Read More
Karoon Energy has successfully renegotiated the Bauna deal with Petrobras. This results in a -40% reduction in acquisition costs.
Read More
COVID-19 and the crash in global oil and gas prices have helped at least one local energy company. Karoon Energy shares jumped sharply yesterday after it revealed better terms to buy a Brazilian oil field than those originally announced.
Read More
The broker notes Karoon Energy was just about to make transformational acquisition before oil prices collapsed in March. The broker now sees the Bauna deal as unlikely to progress, with valuations and debt markets severely impacted.
Read More
Capturing the outstanding long-term opportunities will require staying calm and committed to your investment process.
Read More
The company will acquire the Bauna oilfield for US$665m, becoming the fourth largest liquids producer on the ASX. Macquarie suggests a US$100-120m capital raising may be required to fund the acquisition shortfall and strengthen the balance sheet.
Read More
Karoon Gas posted a first-half loss in line with the broker's forecast. The good news is the new chairman has highlighted a need for a clear strategy, to maximise value from existing assets and improve capital management.
Read More