We have heard nothing from Rockrose/ Viaro on their position on...

We have heard nothing from Rockrose/ Viaro on their position on the JV. The question I have been asking myself is would they consider progressing the project under Labours proposed O&G policies. RR are as different to HHR as you could get. Private not public, majority owned by one individual, substantial asset and cash backing. If Francesco decides it is going ahead it is going ahead.

Even under Labours proposed policies the project has value. On my basic numbers Phase 1 (100%) has an NPV of $205m, cumulative cashflow of $500m and an IRR of 17%. Possibly good enough numbers for RR to move ahead with Phase 1?

RR own 22% of the Bacton Terminal so will also benefit from Phase 1 gas processing. More importantly the majority of Phase 1 infrastructure will be re-used in Phase 2. Advancing Phase 1 brings Phase 2 into play for RR. Obviously RR also benefit if Labour amends their proposed O&G policies.

If RR does proceed to FID on Phase 1 I could see HHR trading back at 2.3c. (under Labour Policy) It isn't pretty but that is nearly a 400% increase from the current SP.

All IMO, DYOR.
It's a coin toss and I'm averaging down.