Enquest Share Discussion Threads

[sharekitchen1974] 22/12/2023 11:41

My 12p entry looking good now, very undervalued, any news on getting rid of North Sea windfall tax wouldn't go a miss lol

[blueball] 22/12/2023 09:28

There you go onwards and upwards.

[donald pond] 22/12/2023 09:03

It is just insanely undervalued. There's literally nothing more to say!

[jotoha2] 22/12/2023 08:56

Market likes it , 19p is the initial number here , then the fun begins.

[mirabeau] 22/12/2023 08:26

Baron Investments

@baroninvestment

Basically an undeveloped at this valuation worth more than the market cap

Maybe they should fully exit(!) and then started life with an EV of £400m+ and annualised free cash flow of £260m.

Equity doubles immediately.

[catsick] 22/12/2023 07:55

This new deal seems very interesting, a partnership on bressay which the market probably values at zero, cash in the till and potential to develop the field without blowing the balance sheet up

[wolfofhounslow] 21/12/2023 14:52

Harbour energy wow

[1347] 21/12/2023 14:27

Might be of interest as CCS is something EnQuest say they are looking at, meanwhile Exxon and FuelCell Energy have started building one.

[mirabeau] 21/12/2023 09:41

big buy gets the price moving

[mirabeau] 20/12/2023 17:23

RNS Cobas above 5%

[mirabeau] 20/12/2023 12:05

Baron

Enquest is on a FCFY of 99-100% at current share price for 2024 (that's based on consensus estimates). Basically free cash anticipated over next year that's equivalent to it's market cap. I will start off by saying that I wish there were more such yields on the London Stock Exchange. As I mentioned earlier, ten of my twenty one holdings are at least double digit %.

There's reasons for high FCFYs though and usually something that's wrong fundamentally or it's a blazing opp. All of this will be very obvious to you pro's but not everyone is. Let's look elsewhere and at TGA for a moment. A couple of years back that was on the steepest of FCFYs and that multi bagged over and over. That however was ungeared, had a growth story, would and could distribute. My biggest winnings in this game replicated (those that have been following for years know the ones).

At Enquest, it has had it's volume trend to contend with as cashflows are prioritised to debt. Market multiples (Top FTSE FCFYs are dominated by O&G sector), pricing sensitivity and the UK have all hampered. That's besides the Swedish delist which is now behind.

Debt has tumbled though big time over the years. Net debt of $1.4bn in Feb '20 (which wasn't peak) and now it's c.$800m lower.

Leverage ratio adjustment, recent intro of PUTs adds a layer of comfort(!) and delivers pricing upside with a floor in place. The FCFY gets a very significant boost in FY25 as FPSO savings kick in. You can find the number!

In a strong oil back-drop, there is a route to net cash over the next couple of years. Your maths is to try and come up with what the volume is by then (last reported at 43,872boepd for the first 10 months) and the annualised cashflows. M&A Optionality obviously looks very different when they cross that line.

Management are keen to get a distribution out and recently said on their earnings call "So we're currently going through our business planning process, which will, when finalized, lay out our capital plans for next year. And I think it would be fair to say that we would look to have something in place by the time we come to the market with our 2023 full year results, which would be end of March 2024. So we're certainly looking to create a pathway for returns and create a mechanism for returns during 2024". Personally, I would favour them adding strength to the balance sheet and not doing anything on this front (yes, I'll be at odds with most)

Unless one is a big time bear on oil, it's certainly a interesting setup. Consensus for 2024 on P/E and EV/ebidta at 1.06x and 1.34x.

[steelwatch] 20/12/2023 09:25

Cheers for the info laser, & Merry Christmas to you.



ETA: 2023-12-21 16:00

[laserdisc] 20/12/2023 09:03

changed now AMUNDSEN SPIRIT to Kraken it Unmoored Wilhelmshaven this morning

[laserdisc] 19/12/2023 09:37

INGRID KNUTSEN departed from Denmark for Kraken ETA: 2023-12-21 23:01

[sharekitchen1974] 14/12/2023 10:14

Looks like a nice W forming on the chart at the bottom there, definitely worth a punt

[devonlad] 14/12/2023 09:47

Aisah, chart says pretty much. Higher low put in, a break upwards over 13.5p is key. Close above this puts a short term chart target around the 16p area. Risk rewrd and all that, I have had a small punt.

[aishah] 13/12/2023 21:55

Are the Swedish sellers exhausted or will they drive this to below 10p?

[royalalbert] 13/12/2023 20:22

Less than a week to delisting in Sweden, world economies about to turn for the better?

Might be a good time to buy more.

[1knocker] 13/12/2023 19:54

Stick to the prefs, avoid the ords.

Petrofac? I made a quick 25% on an in and (swiftly) out there a few years ago when the turnaround was hyped up and contracts were supposed to be going to pour in. Didn't trust it, because of the debt. I suggest that anyone who is trying a punt there takes any profit he can and runs for the hills.

[croasdalelfc] 13/12/2023 19:07

PE is a curse for an aging Wolf

[wolfofhounslow] 13/12/2023 14:32

Won't be up for long

[scepticalinvestor] 08/12/2023 14:59

Up over 8% after buying at under 12p

[p@] 07/12/2023 12:22

mumbo jumbo to me!