EnQuest PLC (LSE: ENQ)

EnQuest PLC is an FTSE All-Share index listed provider of energy transition solutions that explore new energy and further decarbonisation opportunities.

Upcoming Event: On 23 March 2023, ENQ expects to release its FY22 results.

Trading Update (for the year ended 31 December 2022) – released on 17 February 2023

• Production: FY22 average production was 47,259 Boepd (barrel of oil equivalent per day), represented a 6% YoY growth.
• Expenditure: FY22 operating expenditure and capital expenditure are expected to be around US$400 million (reflecting a 25% YoY increase due to inflation) and US$120 million, following the record free cash flow generation of over US$500 million.
• Financial Position: At the end of FY22, ENQ reported a net debt position was around US$717 million, down by US$505 million versus 31 December 2021. By the end of 31 January 2023, net debt was further reduced to circa US$ 698 million.
• Outlook: For FY23, average net production is expected to be between 42,000 Boepd and 46,000 Boepd, while operating expenditure is expected to be approximately US$425 million. Adjacently, the UK Energy Profits Levy can impact cash flow generation and the Company’s capital allocation strategy. Therefore, ENQ plans to focus on deleveraging, prioritise organic investments, and accretive M&A opportunities.

Share Price Chart

(Data Source: REFINITIV, Analysis done by Kalkine Group)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

EnQuest PLC closed the trading at GBX 19.00 on 17 February 2023.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 17 February 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

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