Davy Research

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Mid-year review of E&P names
Resource
Premier Oil | EnQuest | Cairn Energy plc | Tullow Oil | Ophir Energy

DAVY VIEW

The value and risk in exploration and production (E&P) shares depends largely on your view of the oil price. This year’s wobbling oil price has so far meant that capital markets are once again hostile towards E&P equities after a year of tolerance in 2016. For now, we stick with our $50/bbl (Brent) oil price assumption for 2017 but are reducing our 2018 oil price forecast to $60/bbl from $70/bbl given the slow rate of decline in global oil inventories. We maintain our long-run oil price assumption of $70/bbl. Our top picks in the sector are Cairn Energy and Tullow Oil.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • Premier Oil

    Closing Price: 71.7p

  • RATING 20/06/14

  • PREVIOUS RATING 03/04/12

    Outperform

  • Tullow Oil

    Closing Price: 199p

  • RATING 30/06/09

  • PREVIOUS RATING N/A

  • Cairn Energy plc

    Closing Price: 233p

  • RATING 05/12/16

  • PREVIOUS RATING 24/03/14

    Neutral

  • Ophir Energy

    Closing Price: 102p

  • RATING 20/11/15

  • PREVIOUS RATING N/A

  • EnQuest

    Closing Price: 36.2p

  • RATING 19/07/16

  • PREVIOUS RATING 10/06/16

    Outperform

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