Enquest Plc

0.63 (4.06%)
Share Name Share Symbol Market Type Share ISIN Share Description
Enquest Plc LSE:ENQ London Ordinary Share GB00B635TG28 ORD 5P
  Price Change % Change Share Price Shares Traded Last Trade
  0.63 4.06% 16.14 11,696,060 16:35:16
Bid Price Offer Price High Price Low Price Open Price
16.08 16.21 16.23 15.51 15.70
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Offices-holdng Companies,nec 1,916.25 -41.23 - - 304.39
Last Trade Time Trade Type Trade Size Trade Price Currency
17:49:55 O 28,063 15.779 GBX

Enquest (ENQ) Latest News

Enquest (ENQ) Discussions and Chat

Enquest Forums and Chat

Date Time Title Posts
05/6/202318:10Enquest Pure Class12,936
14/4/202221:17why this stock (looks) so extremely cheap? 3
05/2/202219:12Enquest charts1,633
09/7/202114:46Enquest Plc - 20215

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Enquest (ENQ) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2023-06-09 16:49:5615.7828,0634,428.06O
2023-06-09 16:47:4716.14307,76749,673.59O
2023-06-09 16:33:0515.8774,26111,788.19O
2023-06-09 16:33:0415.87382,02860,620.20O
2023-06-09 16:27:3415.7313,4932,122.31O

Enquest (ENQ) Top Chat Posts

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Posted at 13/5/2023 02:40 by steelwatch
EnQuest to make Sullom Voe Terminal infrastructure ‘fit for purpose’

12/05/2023, 4:58 pm

The operator of the Sullom Voe Terminal, EnQuest (LON: ENQ), is planning to rework its processing facilities to make the site smaller and reflect “substantially” reduced production rates.

By making the size of the facilities more compact there would be extra space to host new energy opportunities such as hydrogen production – which is a key part of operator London-listed EnQuest’s future strategy at the site.

Meanwhile the company has confirmed it is reviewing its options for the power station at Sullom Voe Terminal.

The gas-fired station, which meets around 30 per cent of Shetland’s energy demand from surplus power, is set to go into standby mode after the isles connect to the national grid next year, according to network operator SSEN.

EnQuest said opportunities are being assessed for a potential connection to the Shetland grid that would “allow the terminal to operate on sustainable electricity in the future from Shetland’s onshore wind farms that are currently being developed”.

The project to modernise and make the terminal facilities more fit for purpose revolves around new stabilisation infrastructure.

It will allow for the existing process area and surge tanks to be taken out of service.

It will feature a new run of inlet pipework tied-in downstream of the existing East of Shetland Ninian crude pipeline pig receiver, routing the unstabilised oil through new inlet metering and a new indirect fired heater system.

The proposed development would be located on land within the terminal previously occupied by now removed LPG chilldown facilities.

Sullom Voe – crucial oil terminal
The terminal first took in oil in the late 1970s, and at its peak it was processing more than 1.5 million barrels of oil a day.

It takes in oil from fields to the east and west of Shetland, with tankers stopping by to fill up before shipping it elsewhere to refineries.

As production declines in the waters around Shetland, the terminal is much quieter now than it used to be – and it is left with infrastructure oversized for its needs.

In 1986 over 650 tankers used the port of Sullom Voe, but only 63 crude oil export tankers using the port in 2017/18, for example. There were six tankers over the last four week period.

A briefing note prepared as part of a planning submission says existing terminal facilities are operating “inefficiently” due to being oversized for current and future production rates.

This in turn means that the power demand at the site is higher than required.

There is also the factor of equipment and infrastructure ageing.

The planning submission said the terminal owners and operator recognise that ongoing oil processing at Sullom Voe is dependent on reducing the costs of running the facility.

They said the new stabilisation project has been crated to deliver the “optimum route to sustainable late life operations”.

Reviews are ongoing to allow the project to get the go-ahead later this year.

The new infrastructure is expected to include a 50m high flare – but the existing flare on site, which is double the size, is expected to stay in case it is needed. The new flare system has been designed to include a seal to avoid the need for flaring under normal operating conditions.

The overall flaring is expected to reduce.

Excess East of Shetland offgas from stabilisation which is surplus to fuel gas requirements will be treated, compressed and injected into the East of Shetland pipeline system or the Shetland Island Regional Gas Export (SIRGE) pipeline.

This will result in eliminating any continuous flaring of East of Shetland gas, and is a charge to current operations as just now all of this gas is used as fuel within the site’s power station.

‘Re-invented as a green site’
Planning documents say the project is “seen as one of the pre-cursors to allow SVT to be re-invented as a green energy site, while also making the stabilisation process itself more energy efficient”.

EnQuest has not been shy about revealing its desire to develop the site into a “new energy and decarbonisation hub” in the transition away from oil and gas.

It says the terminal has several competitive advantages in the emerging sector: “including a 1,000-acre industrial site with access to existing oil and gas pipeline infrastructure, deep water port and jetties, the highest wind capacity factor across Europe, and a highly-skilled workforce and local supply chain”.

It is assessing the potential to electrify nearby offshore oil and gas assets and planned developments through a grid connection supplemented with renewable power.

EnQuest also plans to “aggregate and use the excess energy” produced by onshore and offshore wind farms “near Sullom Voe” to make hydrogen and other products such as green ammonia or clean fuels.

It has an ambition to produce one million tonnes of hydrogen per annum, but some questions have been raised about how achievable this will be.

Meanwhile the company said it could use the existing deep-water jetty facilities at the terminal to export hydrogen to the UK, Europe and globally.

EnQuest has also applied for carbon capture and storage licences to the East of Shetland, which could potentially tap into a pipeline system operated by the company.

Regarding the future of the Sullom Voe Terminal power station, a spokesperson for EnQuest said it is exploring its options.

“EnQuest is in discussions with SSEN about the changing power landscape in Shetland and how our operations will link in to any future power solutions,” they said.

A briefing document prepared last year by SSEN on its future overhead power line needs in Shetland highlighted that the terminal’s power station could go into standby mode when the isles are connected to the national grid by subsea cable.

Lerwick Power Station, built in 1953 and the main source of energy in Shetland, is also in line to go into standby mode and will only back into life if there is an outage on the subsea transmission link.


Posted at 20/3/2023 16:12 by american idiot
Stansmith....Thats the one....onedb1

Biggest clueless idiot ever.

No doubt he will reappear to let everybody know he bought the bottom when the share price rises a little. In reality I bet hes held all the way down :-)

A professional chartist who gets it wrong all the time lol

I'll give him a tip for free.

The charts will nearly always follow the fundamentals of a company.

Lower 2023 production guidance (than 2022) + lower oil price + a dirty great windfall tax = No surprise at all that the share price has taken a hammering.

Posted at 06/3/2023 09:59 by master rsi
An Intrinsic Calculation For EnQuest PLC (LON:ENQ) Suggests It's 46% Undervalued
Key Insights
Using the 2 Stage Free Cash Flow to Equity, EnQuest fair value estimate is UK£0.35

Current share price of UK£0.19 suggests EnQuest is potentially 46% undervalued

Our fair value estimate is 11% lower than EnQuest's analyst price target of US$0.31

Today we will run through one way of estimating the intrinsic value of EnQuest PLC (LON:ENQ) by taking the expected future cash flows and discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.

Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

See our latest analysis for EnQuest

The Model
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:

Posted at 06/3/2023 09:20 by master rsi
Is there a Enquest share price forecast for 2023?

The analyst consensus target price for shares in Enquest is 29.90p.
That is 54.6% above the last closing price of 19.34p. Analysts covering
Enquest currently have a consensus Earnings Per Share (EPS) forecast of $0.17 for the next financial year.

Posted at 01/3/2023 14:56 by wskill
By Stevo12 on LSE a good viewpoint in my opinion.

I was trying to consider the fundamental value of Enq from a third party’s perspective and my ground up analysis was as follows.

Enq 2P reserves are approximately 160m barrels. Value of producing reserves were worth up to $15 per barrel pre EPL when companies got to keep 60% of taxable profits, now it is 25% (excluding brought forward tax losses) and accordingly reserves now worth 40% pre EPL values or approx $6 per barrel.

This provides a gross value of $960m and I am not attributing any value to contingent reserves. However buying Enquest comes with an obligation to repay debt, fund the remaining lease payments and settle the deferred consideration which is approximately $1.6b in total. However the tax losses are worth approximately $1b as a shield against core taxation which leaves an equity value of $360m which is pretty close to our current market cap.

Not great news but the positive side is that lease and deferred consideration is being repaid by approximately $300m per year, in addition to the $250m of FCF to repay debt. Accordingly market cap should increase each year by $350m ($550m reduction in funding liabilities less $200m of tax loss utilisation) if Oil stays in the $90 range.

FCF excluding tax losses is $50-100m but the tax loss shield of $200m per year should last for at least a further 4-5 years at which point the lease liabilities and deferred consideration will have been fully repaid which will increase FCF by $300m to offset $200m increase tax.

Conclusion - In theory share price should increase by approximately 1p per month for next 3 years on a steady as she goes basis. The reality is always different and Enquest is currently viewed by credit agencies as highly leveraged and high risk with Bonds yielding 10%, compared to Harbour’s Bonds which yield 5%. This I believe is why AB is focussed on reducing total funding liabilities (debt, leases and deferred consideration) to improve credit rating and reduce the cost of debt.

Posted at 22/2/2023 15:34 by northener
35p target seems reasonable, Enquest is currently a cash generating machine and without taxes would be paying off debt in less than 2 years. Taxes really annoy me, in 2020 when oil prices plummeted would the government have supported Enquest, I doubt it. Hence why tax them so highly during period of high oil prices. If a miracle were to happen and the war in Ukraine end, with Russian oil and gas back on the open market price may drop substantially, Enquest will have paid taxes and still have significant debt and not be in a strong position to invest further. We will need oil for some time yet and Enquest maximising asset life of old facilities in the North Sea must be considered relatively "green" as far as oil production can be green and the government should be encouraging companies like this to invest, not stealing money from them and us as investors.
Posted at 21/2/2023 23:30 by master rsi
Canaccord Genuity slightly lowers target price on EnQuest
Sharecast graphic / Josh White
Analysts at Canaccord Genuity slightly lowered their target price on exploration and production company EnQuest from 40.0p to 35.0p on Monday as it pondered what exactly the stock's investment thesis was following its admittedly "solid" trading update.

Canaccord Genuity stated EnQuest's recent trading update showed, unsurprisingly, operational performance in line with the company's November update, and while year-end net debt was "a little higher" than its had anticipated and full-year production guidance "a little lower", it said these seemed to be "quibbles rather than significant detractors".

The Canadian bank highlighted that crucially, EnQuest strengthened its balance sheet "significantly" in 2022 through a combination of "solid production delivery and high oil prices", reducing net debt at year-end to $720.0m.

"We expect that trajectory to continue based on current production guidance, modest capital investment plans, and good control of operating costs, and in spite of the UK EPL tax. As a result while the company still has significant indebtedness, it is no longer, in our view, the problem it once was. All well and good," said the analysts.

However, Canaccord highlighted that though the financials had been "effectively stabilised" and said the stock "still looks good value", the investment rationale was partly based on the possibility of new high-impact market catalysts.

"The macro environment is tougher - lower oil prices, higher costs, and the natural risks concerning UK oil and gas taxation - and the asset base now looks to be in long-term decline. To provide significant market impetus, we think the company will need to provide meaningful shareholder returns (for now we think that is unlikely until 2024), introduce inorganic growth (which seems more likely in 2023), or a company sale (the tax loss pool plus Kraken could still be an appealing combination to an acquiror)," said Canaccord, which reiterated its 'speculative buy' rating on the stock.

Posted at 17/2/2023 14:23 by kalai1
Enquest Plc provided a FY22 operations update and guidance for 2023 this morning. Average Group production was 47,259 Boepd, 6% higher than 2021. Despite inflationary pressures, operating expenditure is expected to be approximately $400 million, reflecting strong cost discipline and favorable foreign exchange rates. Cash capital expenditures are expected to be approximately $120 million with cash decommissioning expenditure expected to be approximately $60 million. resulting in record free cash flow generation of more than $500 million. At 31 December 2022, the Group's net debt position was c.$717 million, down c.$505 million versus 31 December 2021, as cash flow was used to strengthen the balance sheet. Average net Group production is expected to be a little lower next year, between 42,000 Boepd and 46,000 Boepd, with Kraken drilling deferred. The Group is profitable, valuation is very attractive for the sector, forward PE ratio is just 1.2x, PS ratio 0.3x. On the negative side of the ledger, share price lacks momentum, oil prices are at risk as global economic growth slows and government may impose more windfall taxes on the sector. but for investors who are interested in mid-cap energy names, Enquest looks an attractive BUY...

...from WealthOracle


Posted at 16/11/2022 17:48 by clunes100
The rate of debt repayment will slow with EPL, however, given the level of cash being generated, no tax on normal profits due to accumulated losses, the windfall tax will delay reaching a given point by a few weeks or couple of months maximum. The fact is the debt will continue to be paid down very quickly and that of course means net assets increase and we all already know how silly the current MCap is. So as long as Oil stays above US$90, frankly anything above US$75 would do - the share price will inevitably go up and ENQ's hedges are in place for a large amount of production.

ENQ at this share price level must also become an increasingly attractive takeover target, I certainly would not want to be out of ENQ at the moment. If ENQ just hits the higher end of their production targets, the share price will rise as all the analysts have factored in lower end or median at best. Recent ENQ shutdowns have been shorter than expected and if ENQ has kept on top of budgets and timescales for shutdowns in this period, the chances of hitting higher end production targets are good. The budget will also clear the air with respect to uncertainties and there could even be an upside if EPL is 25 or 30% instead of 35% or more and if the O&G minnows can offset tax losses, now that would certainly be an upside.

I see downside risk being low but following the budget and update - I believe there is real upside potential here at ENQ.

Posted at 11/7/2022 08:20 by investordave
You wouldn't think so though from the way the ENQ share price behaves.
Enquest share price data is direct from the London Stock Exchange
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