Enquest Share Discussion Threads

[bomfin] 11/12/2024 11:14

Thanks for the info re Kraken cargo lift Steelwatch. Back on this thread because it is here I mentioned Kraken and Waldorf. OK. Been researching. In answers to questions in one of the September presentations I believe it is said that Enquest net lease cost on the Kraken fpso falls by $80 million/annum on 1st April 2025. Because of tax credits that is around £38 million/annum after tax deducted at 38%. Waldorf`s share of this gross reduction would be just around £16 million/annum if paying tax at 38% and £7 million/annum if paying tax at 78%. Also in their most recent presentations Enquest have said clearly they want to have operatorship of assets having a right old moan about an unsuccessful well at Golden Eagle. It seems natural and lucrative for Enquest to buy Waldorf`s share. They may wish to buy them out of Scolty and Crathes also ? Somehow I dont` think this is on the radar. Adding on weakness.

[steelwatch] 11/12/2024 09:21

Latest Kraken cargo lift underway:



ATA: 2024-12-10 04:06, so could well be on it's way later today, but currently out of range.

Edit: ATD 2024-12-11 12:39, so thats 29 days since previous dispatch on 12 November.

[imnotspartacus] 10/12/2024 09:50

The share is painful to hold.

[bomfin] 05/12/2024 11:20

Going back to Waldorf problems. Does this mean Waldorf UK production assets are up for sale?

[imnotspartacus] 04/12/2024 10:41

Surely the low is in for this now

[wolfofhounslow] 29/11/2024 12:50

Clearly don't understand the tax regime of UK North Sea assets.It's a money making scheme for HMRC

[sharekitchen1974] 29/11/2024 08:18

I'd absolutely love to see theses hit 1 or 2p so I could fill my boots and also allow the company to buy a ton of buyback shares from those shareholders that have no idea of the gift horse that awaits once we are debt free

[wolfofhounslow] 25/11/2024 14:20

Overvalued by about 11.4p

[bomfin] 21/11/2024 09:34

Ah. Thanks steelwatch. Enquest must have a good chance of buying up their 29.5% interest at a time when FPSO lease costs are falling.

[steelwatch] 20/11/2024 20:10

Cairn, or Capricorn as they are now called, sold out their share in Kraken to Waldorf:





This is most likely the reason they can't meet their obligations:

[bomfin] 20/11/2024 19:01

A few questions for those who may know. Are Cairn still the other 29.5% owner at Kraken? If so anyone got an opinion as to why they wouldn`t want to drill new wells? Can the majority share holder at Kraken (Enquest) as the operator not over ride the minority partner?

[bomfin] 20/11/2024 10:09

And Viaro paid £36 million for just 15% of Bressay and the Enquest Producer just last January. With another £12 million to come from future cash flows. I doubt they will be impressed.

[bomfin] 20/11/2024 10:02

Not a particularly good update. With lease costs reducing by a lot at Kraken (Think it`s about $70 million a year net to Enquest. Grateful if someone can give the exact info) next April I`m very surprised they were not able to agree a drilling programme for next year. If their partners will not agree to drill then clearly they need to be looking to buy them out because Kraken important to Enquest not just for Kraken cash flows but also the Bressay gas development. Hmmm. Very peculiar. From February 2024 update. "The Group also expects unit margins to improve as the Kraken FPSO lease rate reduces by c. 70% from 1 April 2025, while the culmination of major projects at SVT will crystallise significant operating cost reductions and emission reductions in 2026 and beyond."

[cumnor] 20/11/2024 09:36

And in restarting dividends, forgetting buybacks which have been a disaster.

[mrzippo] 20/11/2024 09:24

They need to be extracting all the cash they can from the UK and re-investing it into Asia, and quickly. The equity will continue to wither away otherwise.

[cumnor] 20/11/2024 09:16

Things going ok here. Would be happier to hear management say the increase in capex for next year will be redirected overseas from the North Sea because o the governments hostility to oil workers and families dependent on the NS, and also the company is looking at listing elsewhere, rather than London. The majors have told the government to take a jump and now the smaller ones, whom they think are hostage to the NS, need to get stuck in.

[bomfin] 19/11/2024 10:06

Also in April Kraken lease costs drop a lot! They still own 85% of the Enquest Producer FPSO.

[bomfin] 19/11/2024 07:38

I think by end of buyback outside of those shares put aside for the staff rewards scheme they will have bought back about 3% of the company. Possibly close to 4%. By not cutting development expenditure tax credits the government give a likely indicator that they will support capex on already existing projects. Magnus and Kraken combined throw off at least £200 million positive cash flow a year. I can`t see the snags here that the market sees. Adding on weakness.

[imnotspartacus] 17/11/2024 10:44

Surely, with net debt now so low, they can start paying a dividend.

[bomfin] 09/11/2024 17:18

Thanks steelwatch

[steelwatch] 08/11/2024 22:34

Next up for Kraken:



ETA: 2024-11-11 06:00

Edit:

Out of range for many hours due to atmospheric conditions, so missed arrival. Finally re-emerged from the "fog" ATD Kraken 2024-11-12 12:18, so cargo dispatch 27 days since previous on 16 October.

[bomfin] 01/11/2024 16:43

Capex into existing hubs makes sense. No new development issues. They got the 5 year rig certificate for Magnus. Platform drilling. NO contracting rigs. So, they`ll up production there imho. Same with Kraken. Kraken scheduled for new well drilling and workovers next year. In a good place to keep £300 million positive cash flow per annum With 200 million spend on capex (mostly recoverable) and decommisioning (tax credits). P.E of 1 imho. 2 if you count debt.

[imnotspartacus] 01/11/2024 09:38

Fair point