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Hurricane Energy (HUR) Shares Rallied 9.2% on Upbeat Trading Update. What’s Next?

Simon Mugo trader
Updated 17 Jan 2022

Key points:

  • Hurricane Energy shares rallied 9.2% after releasing its full-year trading update.
  • The company produce 3.7 million barrels of oil, generating impressive revenues.
  • The oil firm made a historic turnaround in H2 2021 under new management.

The Hurricane Energy PLC (LON: HUR) share price rallied 9.2% after releasing a trading update for 2021. Some of the report’s highlights include an average oil production of 10,000 barrels of oil daily during Q4 2021.

The company produced 3.7 million barrels of oil during the calendar year and sold 3.6 million barrels to generate revenues worth $239 million, compared to the $180 million generated in 2020.

Hurricane Energy had total debt of $78.5million after repurchasing bonds worth $151.5 million during the second half of 2021. In addition, the firm had $50 million in cash at hand as of 31 December 2021.

Also Read: Best Oil Stocks to Buy Now.

The oil company also warned investors that the well gauge pressure at its Lancaster oil field had reached and dropped below the bubble point, in line with estimates of the same happening between December 2021 and mid-February 2022.

However, there were no material changes in the well’s oil production up to date. The Lancaster well was producing c.9,650 bopd from the P6 well as of 15 January 2022, with the company expecting to ship the next cargo towards the end of January.

Today’s results mark an impressive turnaround for Hurricane Energy, which had a tumultuous first half leading to the resignation of its former management team and the appointment of a new one.

Antony Maris, Hurricane Energy’s CEO, commented: “Despite the major challenges faced by Hurricane last year, the team has done a superb job at delivering excellent production performance and high uptime on the FPSO, as well as finding cost savings. All this has been done while at the same time maintaining high levels of HSSE performance, which is always the first priority for the Company.”


“Oil prices, while volatile, have been stronger in the second half of the year and, combined with the impact of the bond buybacks, production performance and cost reduction measures, we are optimistic that the ability to repay the bonds in full at maturity is now within reach. Given our current prediction of performance and assuming oil prices continue to be within the range experienced over the past month, we believe that post clearing our bond debt Hurricane will have between $8-38 million of net free cash at the end of July 2022.”

Hurricane Energy ended the year up over 60% and are now up 12.8% since the year started in a remarkable recovery. However, doubts remain about the offshore oil company’s future after downgrading the available oil reserves at its Lancaster oil field.

Investors interested in owning its shares may find them pretty attractive at current prices. However, the best time to get in was around the 3.5p support level in late December and early January.

*This is not investment advice. Always do your due diligence before making investment decisions.

Hurricane Energy share price.

IG chart of Hurricane Energy share price 17-01-2022
Source: IG

Hurricane Energy shares rallied 9.2% to trade at 4.461p, rising from Friday’s closing price of 4.085p.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading