Proactiveinvestors United Kingdom Enquest Plc Proactiveinvestors United Kingdom Enquest Plc RSS feed en Mon, 22 Jul 2019 19:10:25 +0100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 17 Jul 2019 11:30:16 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 12 Jul 2019 15:00:56 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 09 Jul 2019 09:15:02 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 01 Jul 2019 14:48:29 +0100 <![CDATA[RNS press release - Report on Payments to Govts ]]> Thu, 27 Jun 2019 14:24:38 +0100 <![CDATA[RNS press release - Total Voting Rights ]]> Wed, 26 Jun 2019 11:54:47 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 25 Jun 2019 15:46:37 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 18 Jun 2019 11:30:03 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 10 Jun 2019 14:33:40 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 05 Jun 2019 16:12:32 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 03 Jun 2019 12:08:56 +0100 <![CDATA[RNS press release - Block Listing Application ]]> Thu, 30 May 2019 08:30:03 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 28 May 2019 16:28:53 +0100 <![CDATA[RNS press release - AGM Statement ]]> Thu, 23 May 2019 16:54:32 +0100 <![CDATA[News - EnQuest confident as Magnus and Kraken fields perform well ]]> EnQuest PLC (LON:ENQ) told investors that production was ahead of expectations in the first four months of 2019, helped by the performances of the Magnus and Kraken fields.

The offshore oiler told investors that group production averaged 69,973 barrels oil equivalent per day (boepd) in the fourth months to the end of April, compared to unchanged full year guidance of 63,000 to 70,000 boepd.

It also flagged a significant improvement at the Kraken field where gross production averaged 33,00 bopd in March and April, and full year guidance for the field remains at 30,000 to 35,000 boped.

READ: EnQuest shares rally as financial results confirm confidence in Kraken

EnQuest noted that net debt reduced to US$1.72bn from US$1.77bn at the start of the year, while at the end of April the company had US$231mln of cash and available bank facilities.

"The group has made a good start to 2019,” said Amjad Bseisu, EnQuest's chief executive.

“Production is towards the top end of our full year guidance range, our capital programme is on track and we have continued to generate strong cash flows and reduce our debt.

"FPSO performance at Kraken has improved significantly with two trains online and we continue to drive further improvements with the FPSO operator. Production from DC4 at Kraken has been better than expected and both Magnus and PM8/Seligi have performed strongly.”

Bseisu added: “We remain confident of achieving our Group's 2019 production guidance of 63,000 to 70,000 boepd.”

Thu, 23 May 2019 10:12:00 +0100
<![CDATA[RNS press release - Operations Update ]]> Thu, 23 May 2019 07:00:06 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 20 May 2019 15:10:53 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 13 May 2019 16:15:44 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 08 May 2019 12:50:34 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 26 Apr 2019 16:34:04 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 25 Apr 2019 11:09:52 +0100 <![CDATA[RNS press release - Notice of AGM and Report & Accounts ]]> Wed, 17 Apr 2019 16:00:01 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 08 Apr 2019 10:20:03 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 01 Apr 2019 11:36:03 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 27 Mar 2019 14:35:48 +0000 <![CDATA[News - EnQuest shares rally as financial results confirm confidence in Kraken ]]> EnQuest plc (LON:ENQ) saw its share price rally as it released financial results including a resolute outlook for the Kraken field.

The North Sea oiler was dented earlier this month when Kraken partner Cairn Energy PLC (LON:CNE) downgraded its reserves associated with the new oil field, which in 2018 experienced problems that undermined its production ramp-up.

Specifically, downtime on Kraken’s floating production storage and offloading (FPSO) vessel caused lower crude recovery volumes.

READ: Row breaks out between North Sea partners over Kraken reserves

Amid the setbacks, Cairn reduced its forecasts and models for Kraken’s future output which in turn led to a downgrade to reserves and a write-off of asset value.

EnQuest at the time said it would not be taking the same approach in its accounting, and, with today’s results, this was confirmed that it had not downgraded Kraken reserves.

"FPSO performance has been the main limiting factor in achieving Kraken's full production potential,” said Amjad Bseisu, EnQuest chief executive.

“As such, our clear operational priority is to improve Kraken's FPSO uptime and efficiency. We are working with the FPSO operator on a number of improvement initiatives.”

EnQuest told investors that it continues to expect Kraken will achieve gross production of 30,000 to 35,000 barrels of oil per day this year. In 2018, Kraken’s production was at the low end of that range and below expectations, averaging 30,300 bopd.

Across the whole portfolio, EnQuest produced 55,447 bopd during the twelve months to 31 December 2018, marking a 48.2% improvement in the preceding year.

This step-change came at least partially thanks to new field start-ups and asset acquisitions.

EnQuest reported revenue at US$1.2bn, up from US$635.2mln, with earnings (EBITDA) coming in at USS716.3mln up from US$303.6mln. The financial performance was driven by higher production and better oil prices, but, the company noted that there was some offset due to the cost of price protecting commodity hedges.

It generated some US$788.6mln of cash from operations, up from US$327mln in the year before, and, the money going out for capital spending reduced to US$220.2mln, from US$367.6mln in 2017.

At the end of December, EnQuest held US$309mln of cash and net debt stood at US$1.77bn.

Thu, 21 Mar 2019 09:38:00 +0000
<![CDATA[RNS press release - Final Results ]]> Thu, 21 Mar 2019 07:00:09 +0000 <![CDATA[RNS press release - Board Appointment ]]> Fri, 15 Mar 2019 07:00:06 +0000 <![CDATA[News - Row breaks out between North Sea partners as Cairn downgrades Enquest's Kraken field ]]> A dispute has broken out between Cairn Energy PLC (LON:CNE) and EnQuest PLC (LON:ENQ) over the value of a newly opened field in the North Sea.

The two companies are joint owners and partners in the Kraken heavy oil field, located in the east Shetland basin, but they don’t agree on the amount of oil reserves that lie there.

Cairn is the minority stakeholder in Kraken, with a 29.5% interest, and with its annual results told investors that a reserves downgrade at Kraken had led an impairment of some US$166mln.

In barrel terms, Cairn cut off around 6.8mln from the field’s crude endowment.

As a response, Kraken operator EnQuest separately issued a statement disputing Cairn’s view of the field’s reserves.

EnQuest instead told its investors that its estimate of reserves remains “materially unchanged”.

Nonetheless, in Tuesday morning’s dealings, EnQuest shares slumped about 10% lower to 16.67p, whereas Cairn’s price was down 3.95% at 168.6p.

UBS analyst Amy Wong, in a note, said Cairn’s move to impair the field's reserves was “not surprising given the cuts to Kraken production forecasts over the last 12 months.”

Divergent forecasts for future production

EnQuest, in its statement, noted that the partners “utilise different technical approaches to Kraken production forecasting in preparing their reserve profiles”.

For context, Kraken struggled somewhat (against previous expectations) during 2018, with output rates impeded by problems with the field's floating production vessel, weather disruptions, and higher than expected volumes of water flowing with the crude.

So, while the co-owners may perhaps be able to agree on the ultimate volume of oil in the ground beneath Kraken they (or their auditors) have different opinions over how much will be recovered in the future and thus come up with different reserve numbers.

EnQuest, which owns 70% of Kraken and reports its 2018 results on 21 March, today said it does not recognise any impairment charge related to the Kraken asset.

In 2018, Kraken produced an average of 30,300 barrels of oil per day.

Last month, EnQuest told investors that it is forecasting Kraken’s production for 2019 will be between 30,000 and 35,000 bopd.

Investors will presumably now have to watch the performance of the Kraken field closely over the coming year and see which (if any) partner chooses to course correct.

Tue, 12 Mar 2019 11:43:00 +0000
<![CDATA[RNS press release - Kraken 2P Reserves ]]> Tue, 12 Mar 2019 07:11:17 +0000 <![CDATA[News - EnQuest to be comfortably within debt covenants with production set to soar ]]> North Sea oil producer EnQuest PLC (LON:ENQ) expects production to grow by 20% year-on-year in 2019.

Production is expected to grow to between 63,000 barrels of oil equivalent per day (boepd) and 70,000 boepd from 55,447 boepd in 2018, which itself was up 48% year-on-year and above the midpoint of the company's revised guidance.

READ: RBC takes back EnQuest debt warning but keeps heavy downgrade

Operating expenditure in 2019 is expected to be roughly US$600mln, including the additional interest in the Magnus oilfield in the North Sea.

"The group delivered on its operational targets for 2018, growing production by 48%. This performance and higher realised prices have facilitated accelerated repayments of the group's credit facility,” revealed Amjad Bseisu, the chief executive officer of EnQuest.

Net debt at the end of 2018 was roughly US$1.77bn. This year, the net debt to annual underlying earnings (EBITDA) ratio is expected to be around 0.9, which is comfortably below the group's debt covenant threshold of 1.5.

EnQuest forecasts 20% production jump in 2019 despite Kraken glitches

— Gulf Marine Contractors (@Gulf_MC) 5 February 2019

“Completing the acquisition of additional interests in assets from BP has delivered a set of assets with a strong strategic fit into our portfolio, with the Magnus asset, in particular, bringing a significant step change in the group's ability to generate positive cash flow,” the company's boss said.

"Our capital programme includes new wells at Magnus, Kraken and PM8/Seligi as well our pipeline projects at Thistle/Deveron and the Dons and Scolty/Crathes. The successful delivery of this programme will underpin production during 2019 and beyond. Our focus on cost control and capital discipline, combined with our improved cash generation capability enables further repayment of debt, which remains the priority for the group," he added.

Shares in EnQuest were up 4.7% at 19.9p in early deals.

Tue, 05 Feb 2019 08:50:00 +0000
<![CDATA[RNS press release - Operations update ]]> Tue, 05 Feb 2019 07:00:02 +0000 <![CDATA[RNS press release - Board Committee Membership ]]> Wed, 30 Jan 2019 15:22:56 +0000 <![CDATA[RNS press release - Change of Directors' Details ]]> Mon, 28 Jan 2019 11:31:54 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 23 Jan 2019 10:08:01 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Fri, 18 Jan 2019 16:09:37 +0000 <![CDATA[News - RBC takes back EnQuest debt warning but keeps heavy downgrade ]]> EnQuest PLC (LON:ENQ) is actually not at risk of a covenant breach, RBC Capital Markets said in a note correcting itself.

RBC issued a heavy downgrade note on Monday though, whilst maintaining its new rating and target price, the bank issued a correction, setting the record straight on one aspect of its analysis.

READ: EnQuest sees 20% production growth in 2019 due to Magnus acquisition

“We published a note earlier incorrectly saying that there was a risk to the company's covenants, which we had wrongly identified to be 1.1x RCF/EBITDA,” analyst Victoria McCulloch said in the new second note.

“However, the two upcoming covenant tests (31 March, 30 June) require EnQuest to have a net RCF/ EBITDA of 1.5x or less, using a trailing 12-month EBITDA."

She added: “There is no risk of covenant breach under the updated RBC oil price deck.”

RBC’s downgrade sees EnQuest rated as ‘underperform’, previously ‘outperform’, and the bank’s price target moved to 15p, down from 55p (current price: 21.58p).

“System outages and equipment repairs on the Kraken FPSO continue to limit performance, which has led EnQuest to lower its production guidance for 2019,” the analyst said.

“Gross Kraken production is now expected to be 30-35,000b/d, which includes DC4 contributions but is well below the previous guidance for total field plateau production of 50,000b/d and our annualised expectation of 40,000b/d.

“Although well testing is now complete at all 11 producing wells, we believe that given the revised production profile there is a risk of a reserves downgrade alongside FY18 results on 21st March.”


-- Updated to reflect RBC's correction --

Mon, 07 Jan 2019 10:11:00 +0000
<![CDATA[RNS press release - Change of Director's Details ]]> Mon, 17 Dec 2018 12:22:36 +0000 <![CDATA[News - EnQuest sees 20% production growth in 2019 due to Magnus acquisition ]]> EnQuest Plc (LON:ENQ) has told investors it expects to produce between 63,000 to 70,000 barrels of oil equivalent per day through 2019 thanks to the recently completed Magnus field acquisition.

The company, in a stock market statement, revealed that production for the ten months to the end of October averaged 54,268 boepd, representing a 53.3% increase compared to the same period of 2017.

It highlighted that the 70% owned Kraken field produced 31,427 bopd while the group’s other operations had a better-than-expected performance.

READ: EnQuest downgraded by Barclays amid concerns over complexity

2018 production is anticipated between 54,000 boepd and 56,000 boepd.

EnQuest noted that its acquisition of interests in the Magnus field, the Sullom Voe Terminal and associated infrastructure completed with effect from 1 December.

"We have continued to deliver in line with our 2018 production targets,” said Amjad Bseisu, EnQuest chief executive.

“We have also made good initial progress in reducing our debt, with cash generated by operations facilitating additional voluntary repayments and we will continue to prioritise debt reduction through 2019 and beyond.

"We are delighted to have completed the acquisition of Magnus, the Sullom Voe Terminal and associated infrastructure from BP. Magnus increases production and cash flow through the addition of significant low-cost 2P reserves.”

Wed, 05 Dec 2018 09:08:00 +0000
<![CDATA[RNS press release - Operations update ]]> Wed, 05 Dec 2018 07:00:03 +0000 <![CDATA[RNS press release - Completion of Magnus Transaction ]]> Mon, 03 Dec 2018 07:00:04 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Mon, 26 Nov 2018 11:56:29 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Fri, 16 Nov 2018 12:10:39 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Thu, 01 Nov 2018 14:29:29 +0000 <![CDATA[RNS press release - Total Voting Rights ]]> Wed, 31 Oct 2018 09:38:01 +0000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Wed, 24 Oct 2018 12:11:34 +0100 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 23 Oct 2018 16:47:11 +0100 <![CDATA[RNS press release - Results of Rump Placing ]]> Mon, 22 Oct 2018 18:14:49 +0100 <![CDATA[RNS press release - Result of Rights Issue ]]> Mon, 22 Oct 2018 07:00:06 +0100 <![CDATA[News - EnQuest set for $20mln cash boost as it confirms exercise of Magnus option with BP ]]> EnQuest Plc (LON:ENQ) confirmed that it has now exercised its option with BP to acquire more of the Magnus asset, along with the Thistle and Deveron fields.

The latest step in the transaction was first announced last month.

As a result of the exercise, EnQuest is to receive $20mln in cash from BP, due to EnQuest taking on additional decommissioning obligations (increasing to 7.5% from 4.5%) as it ups its ownership stake in the assets.

READ: EnQuest to buy rest of Magnus fields from BP

The company added that the cap on EnQuest’s total payment obligation also increases by £42mln to £99mln.

It expects to receive the $20mln payment from BP within ten business days.

The completion of the Magnus transaction is, meanwhile, due by the end of this year subject to regulatory and third-party consents.

EnQuest highlighted that the deal will add around $500mln to the group’s net asset value, whilst it will increase both the reserves base and production volumes.

Taking control of Magnus

In January 2017, the oil firm agreed on a deal with BP to acquire 25% of the Magnus, Thistle and Deveron fields – together referred to as the Magnus acquisition – and, it also received a right to acquire more of the project.

The option has now been exercised and will give the EnQuest the remaining 75% of the assets, at a cost of US$300mln which will be covered partially by a cash flow sharing agreement between EnQuest and BP. A US$100mln cash consideration will be paid.

Notably, the ‘economic date’ of the transaction date is set to 1 January 2017 and as such the cash flows attributable to the 75% will be adjusted in the respective company accounts, and, will alter the base consideration and the amount in the financing arrangement.

EnQuest’s decision to take full ownership comes after successful new drilling in 2018, in which it completed the M-62 and M-63 wells, which has given confidence that it can drill effective, low-cost wells on the fields. It intends to spend US$27mln to drill wells at Magnus and the Canute development area.

Thu, 04 Oct 2018 07:57:00 +0100