Cairn Energy Plc, Company Intelligence Report


#42133

71pages

GlobalData

$ 1000

In Stock


Cairn Energy is an independent energy company engaged in the exploration, development and production of crude oil and natural gas resources mainly through its subsidiary CIL. Cairn Energy primarily operates in Greenland, India, Tunisia and Albania. Figure 1 illustrates the company’s operations as of 2011.Cairn Energy operates its energy business through two business units comprising Capricorn and CIL. Through CIL, Cairn Energy operates in India, whereas through Capricorn Oil Limited (COL) it operates in Greenland and the Mediterranean area. Apart from this, Cairn Energy has major exploration activities in Tunisia and Albania. 


Scope
  • Investment Thesis: This section highlights the companies new ventures, liquidity issues, assets analysis, hedging, new projects details, capex funding, geographical results of oil and gas operations, and other related analysis.
  • Goals and Strategies: Provide highlights on their existing and upcoming challenges with the possible strategies.
  • SWOT: This section highlights the companies internal strength, weakness, opportunities and threats to better understand their position in the market
  • Production and Development profile: This section highlights the companies’ forecasted crude oil and natural gas production from their existing and upcoming assets. It also covers the detailed information and analysis on the producing and development assets.
  • Exploration and M&A trends: This section includes exploration assets information resulted due to new discoveries, new drilling and other activities. Additionally, M&A section highlights the companies’ recent assets transactions, joint ventures, acquisition, and divestment activities during the specified period.
  • Financial Forecast and Valuation: This section highlights the detailed financial forecast of the companies for coming five years. This section also provides intrinsic value of the companies’ by using different valuation techniques.
  • Peer Group: This section compares peer group performance with the main companies on the basis of share prices, financial ratios, operational and financial parameters and other related activities.
Reasons to buy

The report will enhance the decision-making capability in a more rapid and time sensitive manner. It will allow you to -
  • Provide detailed analysis to those who are interested in knowing the companies’ existing and future business strategies.
  • Provide in-depth analysis on the companies E&P profiles along with the exploration and M&A updates.
  • Provide valuable insights to those who are tracking oil and gas markets and wants to know the intrinsic value of the companies.
  • Use the analysis for strategy and planning, M&A identifications, and competitor analysis.
Table of Contents

1 Table of Contents 3

1.1 List of Tables 5
1.2 List of Figures 6

2 Cairn Energy Plc, Company Overview 7

3 Cairn Energy Plc, Key Events For 2011 10

4 Cairn Energy PLC, Key Highlights 11

4.1 Locking Rajasthan Potential to Unlock Greenland Project 11
4.2 Cairn Energy Plc Joins Arctic Explortion Fray; Huge potential Driving its growth plans 13

5 Cairn Energy Plc, SWOT Analysis 15
5.1 Strengths 15
5.1.1 Diversification of Assets Base 15
5.1.2 Low Debt to Equity Ratio; Rajasthan Assets to Provide Stable Cash Inflow 15
5.2 Weaknesses 15
5.2.1 Lower Earning Depleting Shareholders Value 15
5.3 Opportunities 15
5.3.1 Exploration Interest in Greenland 15
5.3.2 Rising Crude Oil and Liquids Production 16
5.4 Threats 16
5.4.1 Unsuccessful Exploration Activities could lead to Failure of Greenland Projects 16

6 Cairn Energy Plc, Goals and Strategies 17
6.1 Cairn Energy Focusing On Greenland Project Mainly Through CIL Assets Divestment 17

7 Cairn Energy Plc, Production Overview 18
7.1 Production Profile 18
7.2 India 18
7.2.1 Rajasthan 18
7.2.2 Cambay Basin (CB-OS/2) 18
7.2.3 Ravva 19
7.3 Bangladesh 19

8 Cairn Energy PLC, Exploration and Development Overview 20
8.1 Rajasthan Development and Exploration Project; Designed For Growth 21
8.2 Greenland Exploration Projects-Searching For Potential Reserves 23
8.3 Mangala Processing Terminal (MPT) Supporting Production 24
8.4 Other Exploration Activities 25
8.4.1 Tunisia 25
8.4.2 Albania 25

9 Cairn Energy Plc, M&A Highlights 26

10 Cairn Energy Plc, Forecasted Production and Financial Statements 28

10.1 Income Statement (20072014) 30
10.2 Balance Sheet (20072014) 31
10.3 Cash Flow Statement (20072014) 32
10.4 Financial Ratios 33

11 Cairn Energy Plc, Valuation 35
11.1 Net Asset Value 35

12 Cairn Energy Plc, Peer Comparision 38
12.1 Share Price Performance 38
12.2 Operational and Financial Performance 39
12.3 Key Financial and Operational Ratio 42

13 Cairn Energy Plc, Key Risks 43
13.1 Strategy to create shareholders value fails 43
13.2 Drilling risks in new and emerging shale resource plays 43
13.3 Competition 43
13.4 Fluctuations in oil and natural gas prices 43

14 Cairn Energy PLC, Detailed Financial and Operational Metrics 44
14.1 Cairn Energy PLC, Production and Reserves Trends 44
14.1.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 20042009 44
14.1.2 Total Crude Oil and Natural Gas Production and Reserves By Country/Region, 20042009 45
14.1.3 Total Crude Oil and Natural Gas Reserve Changes, 2004-2009 46
14.2 Crude Oil/Liquids Production and Reserve 47
14.2.1 Crude Oil/Liquids Production and Reserve Trend, 20042009 47
14.2.2 Crude Oil Production and Reserves By Country/Region, 2004-2009 48
14.2.3 Crude Oil/Liquids Reserve Changes, 20042009 49
14.3 Natural Gas Production and Reserve 50
14.3.1 Natural Gas Production and Reserves Trend, 20042009 50
14.3.2 Natural Gas Production and Reserves, By Country/Region, 20042009 51
14.3.3 Natural Gas Reserve Changes, 2004-2009 52
14.4 Total Crude Oil and Natural Gas Reserves Life Index 53
14.4.1 Total Crude Oil and Natural Gas Reserves Life Index, 20042009 53
14.4.2 Total Crude Oil and Natural Gas Reserves Life Index, By Country/Region, 20042009 54
14.5 Cairn Energy PLC, E&P Costs Trends 55
14.5.1 Upstream Capital Expenditure, 20042009 55
14.5.2 Acquisition Costs By Country/Region, 2004-2009 56
14.5.3 Exploration and Development Costs, By Country/Region, 2004-2009 57
14.6 Oil and Gas Cost Per boe, $/boe 58
14.6.1 Oil and Gas Cost Per boe, $/boe, 2004-2009 58
14.6.2 Oil and Gas Cost Per boe, $/boe, By Country/Region, 20042009 59
14.7 Cairn Energy PLC, Reserve Replacement Ratio 60
14.7.1 Oil and Gas Production Replacement Ratio, 20042009 60
14.7.2 Oil and Gas Production Replacement Ratio, By Country/Region, 20042009 62
14.8 Cairn Energy PLC, Results of Oil and Gas Operations Trend 63
14.8.1 Oil and Gas Revenue and Expenses, 20042009 63
14.8.2 Oil and Gas Revenue and Expenses, By Country/Region, 2004-2009 64
14.9 Oil and Gas Revenue and Expenses, Per boe 65
14.9.1 Oil and Gas Revenue and Expenses, By boe, 20042009 65
14.9.2 Oil and Gas Revenue and Expenses Per boe, By Country/Region, 20042009 66
14.10 Oil and Gas Performance Metrics 67

15 Appendix 68
15.1 Methodology 68
15.1.1 Coverage 68
15.1.2 Secondary Research 68
15.1.3 Primary Research 68
15.2 Data Sources 69
15.2.1 Company Source 69
15.2.2 SEC/Other Regulatory Filings 69
15.3 Methodology for Company Valuation 69
15.4 Expert Panel Validation 70
15.5 Units of Measure 70
15.6 About GlobalData 70
15.7 Disclosure 71
15.8 Disclaimer 71
Table 1: Cairn Energy Plc, GlobalData Estimates On Vedanta Deal 11
Table 2: Cairn Energy Plc, Net Present Value and Enterprise Value In The Three Scenarios (INR bn) 12
Table 3: Cairn Energy Plc, Working Interest Offshore Greenland 14
Table 4: Cairn Energy Plc, Significant Asset Transactions, 20092010 27
Table 5: Cairn Energy Plc, Forecast Production, 20072014 29
Table 6: GlobalData, Price Forecasts, 20102014 29
Table 7: Cairn Energy Plc, Income Statement ($m), 20072014 30
Table 8: Cairn Energy Plc, Balance Sheet ($m), 20072014 31
Table 9: Cairn Energy Plc, Cash Flow Statement, $m, 20072014 31
Table 10: Cairn Energy Plc, Profitability Ratios, 20072014 33
Table 11: Cairn Energy Plc, Other Financial Ratios, 20072014 33
Table 12: GlobalData, Price Forecast, 20102014 35
Table 13: Cairn Energy Plc, Net Asset Value, 2010 36
Table 14: Cairn Energy Plc, Prospective Acreage & Non Proven Reserves, 2010 36
Table 15: Cairn Energy Plc, NPV of Natural Gas Reserves, $/Mcf, 2010 36
Table 16: Cairn Energy Plc, NPV of Oil/NGL Reserves ($/bbl), 2010 37
Table 17: Cairn Energy Plc, NPV OF Total Oil and Natural Gas Reserves ($/boe), 2010 37
Table 18: Cairn Energy Plc, Sensitivity Analysis on Fair Value ($/share), 2010 37
Table 19: Cairn Energy Plc Vs. Peer Group, Operational and Financial Performance, 2009 39
Table 20: Cairn Energy Plc and Peer Group Comparison, Financial Ratios, 2009 42
Table 21: Cairn Energy PLC, Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 20042009 44
Table 22: Cairn Energy PLC, Total Crude Oil and Natural Gas Production and Reserves, By Country/Region, MMboe, 20042009 45
Table 23: Cairn Energy PLC, Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2004-2009 46
Table 24: Cairn Energy PLC, Crude Oil Production and Reserves Metrics, MMbbl, 2004-2009 47
Table 25: Cairn Energy PLC, Crude Oil Production and Reserves, By Country/Region, MMbbl, 2004-2009 48
Table 26: Cairn Energy PLC, Crude Oil Reserve Changes, MMbbl, 20042009 49
Table 27: Cairn Energy PLC, Natural Gas Production and Reserves Metrics, Bcf, 20042009 50
Table 28: Cairn Energy PLC, Natural Gas Production and Reserves, By Country/Region, Bcf, 20042009 51
Table 29: Cairn Energy PLC, Natural Gas Reserve Changes, Bcf, 20042009 52
Table 30: Cairn Energy PLC, Oil and Gas Reserves Life Index, Years, 20042009 53
Table 31: Cairn Energy PLC, Oil and Gas Reserves Life Index, By Country/Region, Years, 20042009 54
Table 32: Cairn Energy PLC, Upstream Capital Expenditure, $m, 2004-2009 55
Table 33: Cairn Energy PLC, Proved and Unproved Acquisition Costs, By Country/Region, $m, 2004-2009 56
Table 34: Cairn Energy PLC, Exploration and Development Costs, By Country/Region, $m, 2004-2009 57
Table 35: Cairn Energy PLC, Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs, $/boe, 20042009 58
Table 36: Cairn Energy PLC, Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs, By Country/Region, $/boe, 20042009 59
Table 37: Cairn Energy PLC, Oil and Gas Production Replacement Ratio, %, 20042009 60
Table 38: Cairn Energy PLC, Three-Year Wt. Avg. Oil and Gas Production Replacement Ratio, By Country/Region, %, 20042009 62
Table 39: Cairn Energy PLC, Revenue and Expenses, $m, 2004-2009 63
Table 40: Cairn Energy PLC, Revenue and Expenses, By Country/Region, $m, 20042009 64
Table 41: Cairn Energy PLC, Oil and Gas Revenue and Expenses, $/boe, 20042009 65
Table 42: Cairn Energy PLC, Oil and Gas Revenue and Expenses, By Country/Region, $/boe, 20042009 66
Figure 1: Cairn Energy Plc, Operations, 2011 7
Figure 2: Cairn Energy Plc, Financial and Operational Overview, 20062009 8
Figure 3: Cairn Energy Plc, Share Price Movement, January 2010February 2011 9
Figure 4: Cairn Energy Plc, Exploration Map, Greenland, 2011 13
Figure 5: Cairn Energy Plc, Exploration Map, Greenland, 2011 14
Figure 6: Cairn Energy Plc, Total Production from Upstream Assets, 20072014 18
Figure 7: Cairn Energy Plc, Production Mix, , 20102015 20
Figure 8: Cairn Energy Plc, Estimated Production By Region, MMboe, 20112014 20
Figure 9: Cairn Energy Plc, Operation Map of Rajasthan, 2011 22
Figure 10: Cairn Energy Plc, Exploration Map in Greenland 24
Figure 11: Cairn Energy Plc, Mangala Processing Terminal, 2011 25
Figure 12: Cairn Energy Plc and Peer Group, Relative Share Price Performance Index (%), January 2010January 2011 38
Figure 13: Cairn Energy Plc and its Peers, F&D Cost per Boe and Reserve Replacement (%), 2009 40
Figure 14: Cairn Energy Plc and its Peers, Per Boe Parameters, 2009 40
Figure 15: Cairn Energy Plc and its Peers, Total Reserves and Production, MMboe, 2009 41
Figure 16: Cairn Energy PLC, Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 20042009 44
Figure 17: Cairn Energy PLC, Total Oil and Gas Production, By Country/Region, MMboe, 20042009 45
Figure 18: Cairn Energy PLC, Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2009 46
Figure 19: Cairn Energy PLC, Crude Oil Production and Reserves Metrics, MMbbl, 20042009 47
Figure 20: Cairn Energy PLC, Crude Oil Reserve Changes, MMbbl, 2009 49
Figure 21: Cairn Energy PLC, Natural Gas Production and Reserves Metrics, Bcf, 20042009 50
Figure 22: Cairn Energy PLC, Natural Gas Reserve Changes, Bcf, 2009 52
Figure 23: Cairn Energy PLC, Oil and Gas Reserves Life Index, Years, 20042009 53
Figure 24: Cairn Energy PLC, Upstream Capital Expenditure, $m, 20042009 55
Figure 25: Cairn Energy PLC, Three-Year Wt. Avg., Reserves Replacement, F&D Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, 20042009 58
Figure 26: Cairn Energy PLC, Three-Year Wt. Avg., Oil and Gas Production Replacement Ratio, %, 20042009 60
Figure 27: Cairn Energy PLC, Revenue and Expenses, $m, 20042009 63
Figure 28: Cairn Energy PLC, Oil and Gas Revenue, By Country/Region, $m, 2004-2009 64
Figure 29: Cairn Energy PLC, Oil and Gas Revenue and Expenses, $/boe, 20042009 65
Figure 30: Cairn Energy PLC, Oil and Gas Performance Metrics, 20042009 67