Enquest PLC (AIM:ENQ) highlighted strong production and high sales prices as it reported on its first half of 2022, in which free cash flow soared to US$332mln.
The North Sea and Malaysia oil and gas firm averaged production of 49,726 barrels of oil equivalent per day, with an average realised oil price of US$89.90 per barrel (versus US$62.80 in H1 2021).
It resulted in US$943.5mln of revenue, up from US$518mln, and earnings of US$536mln, up from US$345mln. Cash generation was marked at US$522.7mln whilst first-half capex amounted to US$54.7mln.
EnQuest prioritised debt repayment, reducing net debt significantly, paying down US$342mln to bring the debt pile to some US$888mln.
Looking to the remainder of the year, EnQuest told investors it expects production to land within the full-year range of 44,000 and 51,000 boepd.
"We have a significant work programme to deliver in the second half of the year but remain on track to deliver our operational targets in our core business,” said chief executive Amjad Bseisu.
"We are also committed to supporting the UK's twin objectives of delivering energy security and decarbonisation.”
Bseisu added: "We remain focused on further strengthening our balance sheet, which will position us well to utilise our capability to unlock organic and inorganic growth opportunities, including the capital-light infrastructure and new energy business, and deliver returns to shareholders in the future."