Share Name Share Symbol Market Type Share ISIN Share Description
Rockrose Energy Plc LSE:RRE London Ordinary Share GB00BYNFCH09 ORD 20P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 1,685.00 0.00 00:00:00
Bid Price Offer Price High Price Low Price Open Price
1,685.00 1,705.00 0.00 0.00 0.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 120.03 5.79 204.67 8.5 221
Last Trade Time Trade Type Trade Size Trade Price Currency
18:10:15 O 731 1,705.00 GBX

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Date Time Title Posts
11/12/201916:55RockRose Energy PLC4,226
21/8/200608:54Russia Real Estate Development Ltd1

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Trade Time Trade Price Trade Size Trade Value Trade Type
2019-12-11 17:04:341,685.0819320.17O
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Rockrose Energy Daily Update: Rockrose Energy Plc is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker RRE. The last closing price for Rockrose Energy was 1,685p.
Rockrose Energy Plc has a 4 week average price of 1,660p and a 12 week average price of 1,660p.
The 1 year high share price is 2,120p while the 1 year low share price is currently 520p.
There are currently 13,090,595 shares in issue and the average daily traded volume is 33,850 shares. The market capitalisation of Rockrose Energy Plc is £220,576,525.75.
mr. t: spawny, why do you think the shareprice would have crashed if oil went down by 15%? History says says the opposite. For example, On Oct 2st 2018 - when Rockrose announced completion of the Dyas acquisition - Brent was >$85 and RRE's share price closed just above £5. On 21st December - Brent was at its recent lows at <$52 but RREs' share price finished at £5.75. During this time there had been 3m shares bought back and an extra 200-250 boepd of gas had come on line from the A18-A5 Well, so it's not a 100% like for like comparison. But still, a huge drop in Brent had negligible effect on Rockrose's share price.
cf456: As for the oil price... "On Oct 1st 2018 Brent was $85 and #RRE's share price was £5. Today Brent is 30% lower and RRE's share price is 300% higher. Here's hoping for another 30% Brent drop and another 300% RRE rise in the next 9 months." ---- "Low price oil means lower price acquisitions for #RRE. So $50 Brent can only be good" hTTps://
financethoughts: thedudie, I’m on hols and not nearly so easy to write a reply on a small screen in the sun, however it’s a good question - perhaps it seems a novice question, but requires a bit of thought actually. Yes, the price calculations are for now, not forward looking. All are subjective, there is no definition for intrinsic value, perhaps the true price is the current share price as it’s what people are prepared to pay, but easy to find anomalies in the market suggesting share price doesn’t match true intrinsic value. Regarding ‘after 1 yr’, much could change in that year, but if nothing changed the share price should be worth the equivalent amount of additional cash, per share, less a small reduction for reserve depletion, not possible to calculate just here but certainly we’ll less than the amount of cash equivalent. Like a rolling wave, cash projections are more accurate in the short term, so a discounted cashflow calc will consider net cash at 100% value, and future years with a growing discount to take that future value to today’s cash value. I tend to value companies on an 18month future cash projection (plus current net cash), anything further being too unreliable to bake into a decision today for me. So, if you take net cash of around £250m, add 18m of cash growth of say a further £200m, you get £450m cash. That’s £34.50 in cash by end of year 2020. RockRose has (for 6m prior to suspension) traded at about 1.5x cash, so would give an implied share price of £51. Taking the same 1.5x ratio against current £250m cash gives a share price of £28.60, so despite adding £2 to the share price since relist (better than the £1.25 cash growth per month) we are still undervalued by RockRoses own established pricing. Sector averages for Price Earnings are 7x, but arguably 4-5x might be more fitting. That would see £128m (current cash gen per year) deriving a MCap of £44. RockRose won’t necessarily have all that cash in 18months btw as they will spend some as Capex, but much of it is buying increased future cashflow, so it nets off either way. Hope this helps.
tim000: Hello retsius. Yes, I noticed that. It does appear that the two Cavendish funds (AIM & Opp) pre-emptively booked a large capital gain on the RRE shares once the deal was announced and the shares suspended in late Feb. Someone on this thread (was it you?) pointed out that the AIM fund registered a 7% price increase at the time of RRE suspension, and indeed the Opportunity fund did the same. Unless there is a large price increase in both funds tomorrow evening, it does appear that this explains the lack of movement today in both funds. I am not an expert in managed funds, but I do find this very peculiar, partly because the transaction had not even completed in Feb, and surely no-one could know what the impact would be on RRE's share price. I wonder whether it is possible to approach the fund manager for an explanation? I hope your Cavendish holding is not too large. On the plus side, there is still room for further gains obviously in the RRE share price, and hence the Cavendish funds. This lack of transparency is poor, however, and the pre-emptive booking of capital gains somewhat questionable. (I suppose the manager would argue that it would be unfair on sellers of units prior to relisting not to receive any gains.)
tim000: RRE is becoming two distinct businesses: one with O&G assets and substantial cashflow, and one with decommissioning liabilities of circa £40 per share (or more). While the latter business is not yet especially busy, it will become increasingly so in the years ahead. (I believe the weighted average length to decommissioning all of RRE's assets is currently circa 12 years, but that would of course lengthen if real O&G prices rise over the medium term.) In the meantime, it is likely to weigh on RRE's share price - the NPV of these liabilities could potentially change enormously due to changes in underlying assumptions. Also, the skillsets and management resources needed to manage the two businesses will be very different too. One possible solution in the medium term would be to hive off the decommissioning business into a separate quoted company, with cash (provided by RRE and its new equity shareholders) of its own. I suspect that only then, would RRE's share price attain its full value (which I estimate to be at least £40 currently).
tim000: fwiw I have purchased some units in the Cavendish AIM fund, which owns 1.8 mn RRE shares (14.4% of the company, and about 13.3% of the total NAV of the fund). Let us suppose the RRE share price triples in the days/weeks/months following readmission. Other things equal, RRE will then account for over 31% of the NAV of the Cavendish fund. I cannot believe that the fund manager would allow the fund to have such an extremely high proportion of its NAV accounted for by one company. So it will either seek to place some of its shares with another institution, or start selling in the open market, or seek a buy-back from the company. I know it has been stated that RRE won't buy back any more shares because it would mean AA exceeding 30% of the equity. However, my understanding is that the 30% limit is allowed to be exceeded, given the authority from the stock exchange. (Indeed I am invested in at least one such company.) Anyway, this is worth bearing in mind post readmission - it just might present an opportunity for us to acquire more shares cheaply, or to see the NAV of RRE rise substantially following another buy-back.
bountyhunter: Shell is at £25 so the level of the RRE share price is by no means unusual. I don't see a share split as a priority right now with everything else going on. Maybe at some point in the future though.
tim000: Not sure who you are referring to fb. Fwiw, I don't disagree with what you've written, and it's not inconsistent with what I've written. (I was just giving an example of how debt finance doesn't change the economics.) As you know, the cash in the Marathon bank accounts is part of the entity being acquired. Actually, I don't think we know for sure how RRE is going to pay for the $140 mn; RRE may use Marathon's cash being acquired or it may keep the cash and borrow within its banking facilities, or a combination of both. It matters not. The point is that if the transacted valuation of the assets is correct, that cash obviously is needed to cover future liabilities. There is no economic difference between using Marathon's cash now and borrowing later to fund decommissioning, or borrowing now. That doesn't affect the transaction's impact on the RRE share price.
tim000: Assuming Marathon's assets are worth $140 mn, and RRE pays $140 mn, then there is no effect on the RRE share price. That's because RRE has to take $140 mn out of its balance sheet (cash and debt) to fund the acquisition. If it funds the purchase entirely with debt, the Enterprise Value (EV) of the company will rise by $140 mn, but there might be no change in the mkt cap. The behaviour of the RRE share price upon coming out of suspension will entirely reflect the market's perception of whether the deal is accretive to RRE or destructive. Given the small mkt cap of RRE in relation to the assets being acquired, there could be tremendous leverage to the share price. RRE shareholders believe that Marathon was unloading its remaining NS assets in a fire sale and they were sold at a knock-down price. I personally think (as a RRE shareholder) that, given AA's skill in managing mature assets, and the likelihood that the sale price was depressed by a lack of prospective cash buyers, RRE's share price will rocket - but not necessarily on relisting. But we must await the market's view.
fardels bear: If we look at SQZ after buying Erskine production from BP at 3000boepd, we see a share price of 30p and 265m shares in issue. Mkt cap £79m. If we look at RRE with 12,590,403 shares in issue and average production this year of 11200boepd the current 600p share price gives us a mkt cap of just ice £75m. Now being that we all thought (or holders did) that SQZ was undervalued at the time, what conclusion must we draw for RRE share price?I've tried to ignore decommissioning as that's not free cash and as unrestricted cash RRE has over twice what SQZ held at the time. SQZ P2 at the time was less than 5mmboe so that counts in RRE favour and I've just realised I've invested here without being able to find out what the current reserves are which with any other oil co would worry me.
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