RockRose Energy (RRE) – Chairman Interview

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.

Full Interview:

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.

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