Enquest Share Discussion Threads

[mallorca 9] 22/3/2019 12:09

American Idiot …

yes I agree but I didn't mean 'fear of the unknown'.
What I meant was that some still fear a further dive in the share price … just because of what they have been through here in the past 6 months.
It takes a little while for confidence in the rise to build.
Once the momentum is clearly upwards then many will buy in.
I added this morning on that sharp dip.
67700 barrels per day in Jan and Feb … impressive.
There is even reference in the results to a possible dividend pay out once the debt is fully under control.
Now that would be a game changer.

[leoneobull] 22/3/2019 11:51

The share price of cairn didn't crater, it was down a couple of per cent...and you forgot about the 1 billion plus Indian impairment

[s34icknote] 22/3/2019 11:49

Managed to build a few at 19 pWas surprised they dipped. Holding pmo and ENQ now .Sitting tight for the long term 12 - 18 month view Sicknote

[american idiot] 22/3/2019 11:41

Wiseacre,

Come back when you can at least get the operators name correct.

[wiseacre] 22/3/2019 11:37

Earlier this month the share price of Cairn Energy cratered when it announced a 20% write down in the value of its stake in Kraken. But according to the operator, Enquest, everything in the garden is lovely. I know who I would rather believe. I warned punters this was a stock to be avoided when the share price was 27p. I have renewed my short.

[american idiot] 22/3/2019 11:32

Mallorca,

The fear of the unknown was removed yesterday.

67,700 bbl in the first two months whilst Kraken performance was dire. 6.5m bbl of Brent hedged at $66 average.

With DC4 online we can hold here with confidence :-)

Looking forward to seeing more regular tanker offloads from Kraken in the near future.

Buy the dips, sell any spikes.

[gregpeck7] 22/3/2019 11:20

Took some more this am. Buy the dips here.

[mallorca 9] 22/3/2019 11:02

There is still quite a bit of fear in the share price which may hold it back for a while.
Once confidence builds we may then see a good jump upwards.

[profitaker] 22/3/2019 10:56

Very useful SW. Many thanks.

[steelwatch] 22/3/2019 10:42

Printable results webcast transcript here:

[wallywoo] 22/3/2019 10:17

IMO this is a reverse head and shoulders pattern. Just forming the final shoulder now before heading on up. A little patience needed and all will be good

[chrismultisante] 22/3/2019 10:13

The drop is driven by POO. All oilys are the same today.

[stupmy] 22/3/2019 10:09

Nothing is certain, but it would seem to me that the likelihood of a drop back to 17.67 (gap fill on 2 h chart) has increased. Even on the 2h chart, the trend has not reversed and therefore remains bearish, albeit in a bottoming formation. Probably very optimistically I've set a limit buy for closure of the 2nd gap to replace the leveraged position I closed yesterday just below 20. Gap closure would be achieved at 16.25 or thereabouts. I'll also watch carefully and might start to re-enter if we see the first gap close

[mallorca 9] 22/3/2019 09:30

Up she goes.

[leoneobull] 22/3/2019 09:13

North Sea is “attractive investment proposition” says oil firm eyeing Shetland development

By Mark Williamson
Group Business Correspondent
EnQuest started production from the Kraken heavy oil field East of Shetland in June 2017

NORTH Sea-focused EnQuest has said the United Kingdom Continental Shelf remains an attractive investment proposition although Brexit could cause some disruption as the firm grapples with production challenges on a flagship field off Shetland.

After posting a 135 per cent increase in annual profits, to $716.3 million (£545m), EnQuest said it had reaped the rewards of a dramatic expansion in the North Sea and made clear it sees further growth potential in the area.

The company noted it has achieved strong results from the mature Magnus field in the Northern North Sea and a stake in the Sullom Voe oil terminal, which it acquired from BP for $185m.

This helped offset a disappointing performance from the Kraken heavy oil field that EnQuest developed East of Shetland.

The company’s partner in the development, Cairn Energy, last week cut the valuation of its stake in Kraken by $166m. However, EnQuest said its estimate of the reserves held in Kraken remained materially unchanged.

While EnQuest’s “clear operational priority” in 2019 is to improve the uptime and efficiency of the floating production storage and offloading vessel (FPSO) used on Kraken it highlighted the potential to develop more oil finds in the area.
The results announcement provided a clear vote of confidence in the UK North Sea, amid the renewed volatility in crude prices seen since October and the uncertainty around Brexit.
EnQuest’s chairman Jock Lennox said: “The Directors believe that the UK Continental Shelf remains an attractive investment proposition.”
Noting the industry had worked hard to reduce costs in recent years, he said firms in the area benefited from competitive regulatory and fiscal regimes, an extensive infrastructure base, access to a world-leading supply chain and a highly skilled workforce.
Mr Lennox added: “While there may be some disruption to the supply chain from the impacts of the UK’s proposed exit from the European Union, the Directors are confident that such issues can be overcome.”

Read more: Shell boss declares giant focused on growth in North Sea amid Brexit uncertainty

The growth achieved by EnQuest has encouraged directors to persevere with a strategy that has involved using acquisitions to support a big increase in its presence in the North Sea. EnQuest employs around 800 in Scotland.

Moves by majors to retrench in the North Sea in response to the crude price plunge since 2014 have created opportunities for firms like EnQuest to acquire assets at what they regard as attractive prices.

Independents expect to generate good returns from investing in projects that may not be big enough to interest majors.

EnQuest acquired full control of Magnus in December and increased its stake in Sullom Voe to 15.1%.

Mr Lennox said that after gaining 100% control of Magnus, EnQuest had enjoyed an immediate and material increase to its proved and probable reserves, production and cash flow. Magnus had performed well since EnQuest assumed operatorship in December.

Chief executive Amjad Bseisu said EnQuest had reduced operating costs at the Sullom Voe Terminal on Shetland by around 25%, to £150m, through efficiency initiatives.

He noted that production at Kraken had been below expectations, reflecting FPSO and weather-related outages.

“We continue to assess future opportunities at Kraken that have material volumes of oil in place for future development, such as the Western Flank,” added Mr Bseisu.
But EnQuest’s statement suggests firms that operate fields will keep the pressure on the North Sea supply chain. EnQuest said it was vital to maintain a continued focus on costs amid ongoing oil price uncertainty.
With shares in EnQuest rising around 11% yesterday, investors appeared pleased with the update.
Group production averaged 55,447 barrels of oil equivalent per day (boepd) in 2018, up 48.2% on 2017.
The $716.3m earnings before interest, tax, depreciation and amortisation achieved in 2018 compared with $303.6m in 2017. The rise in profits reflected higher volumes and the increase in oil prices during the year.
After Royal Dutch Shell posted a 36% increase in annual profits to $21.4 billion in January chief executive Ben van Beurden said the oil giant wanted to grow in the UK North Sea.
He said Shell believed a no deal Brexit would be “a very bad outcome” but had prepared for the possibility.
“In the bigger scheme of things … this is a relatively immaterial event for our portfolio,” he said then.
On Monday Siccar Point Energy boss Jonathan Roger said the company could be producing from bumper fields off Shetland for decades as it started drilling work on a big prospect in the area.
Shares in London-listed EnQuest closed up 2p at 19.64p.

[mallorca 9] 22/3/2019 09:07

Just to say …. I just added on that drop.

[andypop1] 22/3/2019 09:00

Leon,
I think you have knowne long enough to know I don't take any comments on these boards seriously let alone personally.

Short term a Kraken fix will get it up to 30-35k gross which quite frankly is not good enough.
We are approaching the second anniversary of first oil and production is getting worse not better, I realise they are now trying to reduce the water content by extracting that separately and that DC4 is now online but if the problem is with the FPSO as has been suggested and has still not been resolved it does make you wonder if a permanent fix is possible.
Magnus is what the company has a proven reputation for and was a good move short term, the total costs payable to BP over the long term may not be so great but it is short term liquidity the company is so desperate for so a good move to keep the company ticking over.
I wish you luck and will take another position at some point but not today.

[profitaker] 22/3/2019 08:55

or 6.7p of EPS

[steve73] 22/3/2019 08:11

From yesterday's presentation, EBITDA is $150MM higher with oil at $70/bbl than 60... makes a big difference to debt ratio.

[gregpeck7] 22/3/2019 07:58

Oil had a small pull back but looking rock solid for a push over 70. Hopefully this can take 20p today and hold.

[leoneobull] 22/3/2019 07:28

Andy P, I was only teasing, don't take personally. You did well for a rapid in and out....my timeframe is longer . Imagine the share price here if they semi sort out Kraken and Brent hits 75 plus usd say May.....it could double give it was 35p to 38p last May and September. More shares in issue but much more production and unlike PMO, vast majority oil rather than PMO's oil gas split...I like PMO too, but I'm looking at where the beaten down share price is,,,which is why I think ENQ has greater potential next 3 to 6 months percentage gain wise. Xxx

[leoneobull] 22/3/2019 07:24

https://www.cnbc.com/video/2019/03/21/oil-and-gas-usage-seeing-significant-global-growth-enquest-ceo-says.htmlVery good interview from yesterday with the CEO

[svenice7] 21/3/2019 20:05

The Enquest webcast was very impressive this morning. I bought more..

[stansmith3] 21/3/2019 18:44

rumours of maduro trying to cut a deal, that will hit poo at least in short term