EnQuest (ENQ) is a company that I have been following for a long time, and whilst it has had lots of ups and downs over the years, it has recently been moving strongly in the right direction.
Oil companies seem to be very out of favour at the moment, and that isn’t that surprising with commodity prices generally being low.
Despite the threat that a Labour government poses to the UK oil and gas industry, I still see opportunities for producers in this sector to perform well, and I particularly think that EnQuest (ENQ) is worth a look. Here's why!
The share price of EnQuest (ENQ) continues to surprise me given the more positive recent updates, and I can only think that it is suffering from fears of what a Labour government might do if it wins the next general election.
The Energy Profit Levy tax on oil and gas companies with operated assets in the UK has had a big impact on the sector, and the share prices of the companies operating here have reacted accordingly. The market is also nervous of what Labour might do if it were to win the next general election, as there has been much talk from its MPs of increasing taxes even more and also on restrictions to the development of new assets. The latest such company to see its share price hammered upon the release of its financial results has been EnQuest (ENQ) this week, with it trading at almost 15% down at one point and close to the low that it hit back in June prior to oil prices rising sharply.
EnQuest (ENQ) has just released its results for 2021 and the market didn’t seem to like them, judging by the reaction of the share price, which I find surprising as I think they actually made pretty good reading.
UK North Sea and Malaysia hydrocarbon producer EnQuest (ENQ) has published an Operations update, noting that it delivered free cash flow of around $395 million in 2021 with a realised price of c.$69/bbl, resulting in a stronger balance sheet with net debt reduced to $1,222 million and that net production averaged 50,810 Boepd last month. Good news? You bet.
EnQuest (ENQ) has announced its results for the first half of 2021, emphasising strong free cash flow, that it remains focused on improving production across the portfolio and that the Golden Eagle acquisition remains on track to complete around the month-end and will add production, reserves and cash flow.
EnQuest (ENQ) has announced a proposed issuance of equity “in line with the announcement on 4 February 2021”. So what was that announcement and what is the proposed equity issuance and its impact?
EnQuest (ENQ) has announced a new senior secured borrowing base debt facility of approximately $600 million and an additional amount of $150 million for letters of credit for up to seven years. What is the significance of this?
Oil company EnQuest (ENQ) has announced calendar year 2020 results and that “year to date February production averaged 46,635 Boepd, affected by outages, repairs and opportunistic maintenance at Magnus and Kraken”. The shares have currently responded lower to below 19p, but this is a blip. The shares are a buy.
The oil price recovery continues and sector guru Peter Brailey has noted HERE that it is becoming very clear that demand is recovering back to pre-Covid levels along with production and storage decline trends. From around $67, he now sees $100 oil this year as very likely and perhaps inevitable rather than possible. And so to a geared way to play this...
Quite often ShareProphets readers contact us asking for an opinion on a particular company, and I’m always happy to take a look – although there is no guarantee that the conclusions I come to will necessarily be what they wanted to hear about the company!
EnQuest (ENQ) is a company that I have followed for a long time and have previously been invested in myself, but over the past few years its shares have performed terribly and has never really recovered from the previous oil price slump, which bottomed out in 2016.
There seem to be a number of mid-sized oil producers which have fallen out of favour with investors for quite some time now, and I’d definitely have to include North Sea-focussed EnQuest (ENQ) high up on that list...
