Enq 23 �pik Tog Discussion Threads

[ditchsid] 16/8/2019 07:27

Virtual ex-div date 31 July, caused drop.

[steve73] 16/8/2019 04:12

Seems odd that these bonds didn't drop by 3.5p yesterday after the interest was paid, although they had dropped by approximately this amount during the preceding couple of weeks.
Anyone buying on the 14th would have done well.

Big question going forward is, will they hold their value or will they drop like they did during 2015/16...?

[hpcg] 05/7/2019 09:20

PPCEH - I think this discussion is somewhere back in the thread. Yes these are QCB's. IMO at this oil price a loss on par is more likely than a gain as they can't refinance the current debt load. Senior always holds sway in these situations, so I wouldn't be surprised if these ended up as convertibles, which wouldn't be QCBs.

[ppceh] 04/7/2019 16:00

Does anyone know if these are QCB’s. They tick all the boxes so assume they must.

£ Bonds to be redeemed at par and in £.

Can’t see why they don’t qualify

[hpcg] 21/3/2019 18:09

For sure, and that was my base case, and indeed would be should I choose to invest again. Debt is being paid down very slowly though, and necessarily asset prices are based on the free cash they are likely to produce over their lifetime. Kraken has had these problems since it came online, that problems continue is not reassuring. Anyway, I think these are well known to all investors so each to their own. For what it's worth I didn't see anything in the report today to change my mind, even if the equity market liked it.

[grahamg8] 21/3/2019 17:44

If the bonds aren't paid in full then Enquest go out of business. At the present output and oil price they are making money and paying down debt. If the oil price drops and output stays the same then there might be a problem in 3 to 4 years time when the repayment is due. But in reality the bonds simply get refinanced and/or assets are sold to pay to redeem them.

[hpcg] 16/3/2019 09:53

I sold all my ENQ1 on Friday. Kraken is a worry, and I realised my thesis had not been played out. Whilst I don't see a huge downside at this time I don't think there will be full recovery on the bonds and thus the upside is limited. There is no margin of safety in operational performance either, which is optimistic for oil.

[11_percent] 14/3/2019 23:13

Anyone else getting the feeling that all is not well with ENQ.

The share price has become detached from the oil price and just keeps going down.

[aureliusprimus] 09/1/2019 13:12

Oil price rally- ENQ1 was greatly oversold so bouncing more than PMO1. Major rally in some small E&P equities too.

[11_percent] 09/1/2019 12:47

What's happening guys.....

[steve73] 06/12/2018 01:10

spitting.. I sold some of my bonds 6 weeks ago to fund my rights of the equity, and received the accrued interest.

[lonrho] 05/12/2018 18:13

Yep according to Cannacord brent would have to average $35 dollars for remainder of period for payment not to be in cash.

[spittingbarrel] 05/12/2018 17:54

Profitaker - That's what I would expect. Presumably a broker error.

[profitaker] 05/12/2018 17:52

SBThe Brent average price is taken for the period 6 months ending 1 month prior to payment date. So, the period they look at is July 18 to January 19. Expect an RNS mid January confirming cash payment in February.

[spittingbarrel] 05/12/2018 15:24

I've just added a few more and didn't get charged accrued which surprised me, it would still take a fair old drop in the POO for it to average below $65 between August and next Feb.

[11_percent] 15/11/2018 23:08

Cheers guys.

[hpcg] 15/11/2018 19:40

Personally I am extremely confident OPEC / KSA will reduce output. They have demonstrated evidence that not acting and a lower oil price is much worse for them than lowering output, taking a hit on volume but maintaining and indeed increasing the price. The low oil price did not take out the Permian last time and it wouldn't do it a second time around.

[aureliusprimus] 15/11/2018 18:34

...and proximity to the $65 average at which the coupon gets toggled back to PIK notes (tho' unlikely to happen at the next payment date IMV)

[hpcg] 15/11/2018 18:10

Oil price and Sterling coupon.

[11_percent] 14/11/2018 09:20

Why is this falling guys.

[steve73] 25/8/2018 02:45

I've got 6000 to sell if anyone wants them.... I don't fancy doing it in lots of 15... where the dealing fee is 10quid..!!!

[hpcg] 24/8/2018 15:30

I have paid accrued on bonds purchased post 15th Aug. I've not tried to sell any :) Also bought more than 15, but there does seem to be an ample supply.

[lonrho] 24/8/2018 15:13

I bought some yesterday at 91.9 plus accrued through HL via a market maker, so of course you should receive accrued if you sell.