Enquest Share Chat (ENQ)

EnQuest isn't an AIM company so they can't even cut & paste properly. We should know tomorrow the details of the windfall tax. The news channels are saying Rishi Sunak will announce a package of measures tomorrow including a windfall tax. I'd rather call it a "scapegoating tax" but we should escape relatively unscathed although it will dent our tax credits which are valued around zero by the market.

Interesting analysis of any potential tax and the zero impact on enq. Even more interesting is that HBR is going to run out of the tax loss allowance that it got as a result of its merger last year. I think Hbr took on $2bn debt from the acquisition past year and I think got some $1.5bn in tax losses?

Could HBR start looking at enq given enq has much lower debt of around $1bn and tax losses of $3bn? Surely they can see the deal enq current low valuation offers?

North Sea’s biggest oil and gas producers likely won’t feel brunt of windfall tax

"Similarly, 50,000 barrel per day producer Enquest Plc (AIM:ENQ) will be the least affected according to Jefferies whilst Serica Energy Plc (AIM:SQZ) said to be the most exposed.

“While we cannot predict what policy decisions the Government may make and how political and media considerations may factor into those, for illustrative purposes, a hypothetical 10% increase in the UK marginal rate to UK independent E&P producers on 2022 production would, in our view, have the greatest impact to Serica Energy's 2022 net income and free cashflow of approximately 15%,” Jefferies analyst Mark Wilson said in a note.

“At the opposite end of the scale, EnQuest's tax losses and investment allowances would see it incur little to no incremental UK cash tax exposure. We estimate Harbour Energy (LSE:HBR)'s exposure as sitting between the two.”
"

https://www.proactiveinvestors.co.uk/companies/amp/news/983237

The debt grip? I suppose after the $70m raise of new money we must be at the point of having repaid all of the RBL and are now accumulating cash as next payment of debt being sept 2023 unless new terms agreed in mean time. Debt is not a problem!

The other side of that KO is that we're much better placed than for a number of previous substantial rises, it could happen any time. Assuming the the SP reasonably reflects our current position (i.e. the fact we're a lot better off than for previous rises), then we shouldn't fall back the way we previously did. In fact, we could get another substantial rise that subsequently subsides, as we have done in the past. I just find it interesting that despite having reduced debt and having such a high fcf, our SP is not that much higher than it was in Feb 2020 (more than 2 years ago at a time things were looking a lot more dodgy).

Another 1p + fall from the days high.
Its obvious someone is playing our yo-yoing SP .

The SP is reflecting that we are not out of the woods, in fact far from it ! We need another 12 months of $100 oil to relieve us from the debt grip that we've been stuck in for the past 7 years.
We won't see any real moves until we have crossed over into a position of safety.
Oil stocks = Stress

There are now very good reasons for the companies prospects to be significantly improved and for the SP to move up, and it has done to an extent. But if you look back over previous years we've had large rises, which we all welcomed and tried to rationalise that were really on the back of very little. For example Feb 2021-Mar 2021 13 to 25p ish. Dec 2019 to Jan 2020 18 to 29p ish. There are others. I took advantage of those. This one for me is different and the price is not far ahead of Jan 2020 despite ENQ being in a significantly better position. On this occasion, I'm not seeing the value in trading as I believe the SP rise is based upon very solid and 'irriversible' changes to ENQ's fortunes. I hold to that even if POO slips back. We've had a game changing few months. I've not sold a share, but I'd been better at what I do, or more disciplined etc I could have made a packet trading 37 to 31 to 36 and some bumps in the middle. I wasn't good enough, or I was too convinced of the back story or something. For me this remains a very strong conviction.

Thanks TARMAK, understood. My fantasy is you will be having to include a column for EP production on Fionaven!

Hi!

Sipp 10,
Sorry if I just give a short answer, I'm in hurry.

If you look in the OGA-file, you'll see that month by month being changing caused by maintenance.
The June number is half, minus decline, 24 614 and that's what bring 46 279 for H1.
I suggest you to look on that in late of the year and see what numbers do in August to year end.

Thanks for the question!

Regards/Kamrat

Hi squif,are you still onboard or have you bailed out, I know the percentage profit your in as it's around mine so would not be surprised if you've taken the money and run,gla monkey

Nice trade from 34.19p. Will set a buy with 50,000 shares once the windfall tax details are announced

How they can possibly tax enquest that is yet to make a profit apart from this year is beyond me.

TARMAK
Thank you for all your hard work. I am sure we all greatly appreciate it. I like the SP at 57p at year end. In the Romaron challenge I had 32.8p as a pessimist to avoid disappointment. You have 43,437 BOEPD for H1 whereas the OP has 50,361 BOEPD to 30th April. Natural decline I understand but 5 wells fingers crossed should be coming on stream. I was rather hoping allowing for planned shut downs a tad under 55 BOEPD for H2. Where am I going wrong?

Hi!

Therapist,
sorry for late response.

I always need time when there have been update's.
Positive for this time is that I make it easier to compare our numbers by that I left third gas-counting and try to count like you?? and convert gas to mmbtu.
I now also count off 2% (1%) for shrinking after show'n numbers.
Regards to the price is my count off for PSC 35% as it is a bit as a hedge (lower price = lower %).

I can see that I'm a bit in front in my forecast but it repair it selves at maintenance as I have taken in a bit there.
There was strong numbers and if you see month by month in row 150 in OGA, you'll see really strong numbers at late year but the numbers who will be released in September will be less caused by maintenance.
https://drive.google.com/drive/folders/1h_a4jmSsXq2iypyHqoFXfo49pIZzmoid?usp=sharing

Regards/Kamrat

Hi Plethorus - I got this reply from IR on 12 Jan: "Regarding windfall tax – yes, if (ever) enacted in a similar way to prior “raids” we would expect to be able to use our tax losses to shield us. Of course, they could implement a new tax, which would then require us to review its rules and applicability of our tax position etc."

It would still impact our tax credits but the market seems to give them scant regard anyway. As to the second point that enables some negotiating. The whole mess is driven by opportunism by politicians and an ignorance of the industry. The climate lobby are as usual screaming like stuck pigs when they are a large part of the blame.
What have they done with all the money that's been thrown at them?

Hi,

I've asked that Swinney is kept on board until he clears the bar bill at EP. It's the least they could do. I'll cover the smashed up urinals. Monster.

I missed Rani Koya though, you can read the blurb but I pick out "Rani is currently the CEO of OGL Geothermal Ltd., a geothermal development company focussed on Europe, the Middle East, and Africa."

"Geothermal" in the air = brownie points! That's a clean reference if you happen to be Swedish and don't know the juvenile female side of the scouting movement.

GLAXXX

Is Enquest unaffected by the windfall tax because they have tax losses or because they are investing heavily in the North Sea?

And that's why something's cooking

Was at 34.50 for 5,189,000 shares. Off-book with Trade flag TNCP
I found this for TNCP and I am none the wiser. It seems technical and I'm not reading anything in to it but if it continues may mean something.
"MiFIR requires certain trades to be flagged as a ‘transaction not-contributing to price formation’ (TNCP) (or similar). The TNCP flag includes technical transactions, such as collateral transfers, give-ups and give-ins, and interaffiliate trades undertaken for operational purposes. However, it also includes a number of transactions that may represent an economic trading interest, such as benchmark trades (see Appendix A2 for more detail). Given this, it is possible that applying a filter based on the TNCP flag alone may over-estimate the number of technical transactions. On the other hand, it is not clear that all technical transactions will have been identified as TNCP. For example, in Q1 2021 there were 540 trade sub-condition codes within the SI and OTC categories across the European equity market universe.9 While some of these codes have not been explicitly flagged as ‘TNCP’, the precise economic nature of the transaction is not clear from the available information. "

I only read the RNS. Thanks. Not sure if they mentioned a percentage in previous years.

Page 7, point 17 a. Also page 2, first sentence right under headline.

Hi Martinen - the authority to purchase own shares was passed in the 2021 and previous years AGMs and may just be a refresher. Where did you get the number 10%?

I'm not and never will be a company secretary because it is mainly gibberish to me but your post did make me look more closely at the resolutions. In the 2021 AGM they finished with 'Articles of Association'.
This year's finishes with 'To call a general meeting of the company on not less than 14 days notice'.

I've never seen that before!

AB just keeping it all low profile !!! Something's cooking

Sorry to reply to my own post, but can you imagine what would happen to the share price if they bought in 188 million shares?

Resolution 17…. Getting approval of share repurchase of up to 10% of outstanding shares.

https://www.enquest.com/fileadmin/content/AGM/2022_AGM_Notice_of_Meeting.pdf

On 24 March EnQuest issue an RNS announcing Jonathan Swinney is leaving to become CFO at Tullow Oil.
This on 24 March (same day) https://www.ashurst.com/en/news-and-insights/news-deals-and-awards/ashurst-advises-tullow-oil-on-acquisition-of-interests-in-ghana/
Today we announce our AGM for 17 June 2022 at Ashurst LLP, London Fruit & Wool Exchange 1 Duval Square, London E1 6PW, United Kingdom.

I'm not really a conspi****** but these look like footprints to me?