DAVY VIEW

We adjust our Corre Energy portfolio model to reflect its recent interim results and the outcome of its operational and strategic reviews. Two critical elements of the investment case come to the fore. Firstly, while smaller than previously anticipated (our portfolio reduces from seven to four projects), its revised portfolio still equates to a significant enterprise value. However, secondly, the cost and terms of funding required to capitalise on that value opportunity, to be raised via its prolonged strategic investment process, remain uncertain. As a result, so too does the assessment of fair equity value. We shift our investment recommendation and price target to ‘Under Review’ until we receive clarity on the outcome of that process.