RockRose Energy (RRE) – Chairman Interview
RockRose Energy (655p ask, market cap £82.5 million) chairman Andrew Austin was interviewed yesterday by Malcolm Graham-Wood.
Key takeaways include:
- New target to double production to over 20k boepd.
- Currently on an EBITDA ratio of 1.
- Will consider multiple options to return cash to shareholders – dividends, buybacks etc.
- Always looking at potential acquisitions – the reduction in the oil price has brought more opportunities to the fore.
- Access to debt for acquisitions if required
- Decommissioning liabilities are reducing due to extended field life – some restricted cash will move to unrestricted on the 1st January.
- Plan to spend $70 million on capex next year.
RockRose remains the largest position in my portfolio by both value and percentage as I continue to view the company as materially undervalued.
At the time of publication, the author holds a long position in RRE.