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I'm not trying to mislead anyone but it is possible I'm being stupid. I'm reading the last sentence in this passage from the RNS...
EnQuest Chief Executive, Amjad Bseisu, said:
"During 2019, EnQuest again delivered on its targets. The combination of improved Kraken performance, a full year contribution at Magnus and strong performances at Scolty/Crathes and PM8/Seligi, drove significant production growth and free cash flow generation, which facilitated a material reduction in the Group's net debt.
"Given the prevailing low oil price environment, we have taken decisive action to lower our cost base, targeting $190 million of operating cost savings in 2020, equating to unit operating expenses of c.$15/Boe. With these significant cost reductions, cash flow breakeven is estimated at c.$33/Boe in 2020. With realisations in the first quarter of 2020, the cash flow breakeven falls to c.$25/bbl for the remainder of the year.
Doesn't that mean that is poo is higher than 25 a barrel for the rest of the year we make a profit?
I said about 500000 a day coz poo is 34 and we produce about 60k a day.
Keep it simple for me! Thanks.
" Cash costs for UK E&PS - it is $16 in 2019".. :-)
.....all the best with your analysis and investing activities.
Luck why do we care what oil is going to be next quarter? And why would i care what analysts think? Do they bet their house on these convictions? If we believed oil would be in the $20s or $30s over the medium to long term we obviously would not be invested. You need to revisit your definition of high lifting costs per barrel. Sorry i am genuinely not being harsh but if you look across US shale, Gulf, Canda, your statement is just factually incorrect. Opex per barrel of $20 and cash breakeven of $30 is upper quartile
LuckCounts....Enterprise value per barrel is simply a market appraisal of the company divided by the number of barrels. You are basing you investment decision based on the market appraisal? It would be easier for you to invest in an index fund and be a passive recipient of market returns. The correct metric would be finding costs per barrel or lifting costs per barrel. Let the oil price be what it be. You cant predict it
LUCK COUNTS i dont know whats happen with your past history with enq but any think you want to share .Your clearly not happy
Tim - you should not be managing or investing money. Invest in an index, please.
Luckcunnts did you not read the RNS.
Another troll pops up
So if breakeven is 25 until the end of the year I guess we're still making about 500000 dollars a day at current oil prices.
Could not disagree anymore luckcounts this offers great value over the medium term. Trade the swings in-between highly surprised at the writedown but pmo and tlw did the same.
Explains why it did not rise over the last few weeks as the market was awaiting this news.
Which watch and wait before I ponder my buy back.
Haha - thats funny furryboots. Yeah. Anyway the market likes it and thats all that matters. Way to go AB!
Breakeven from March is 25 dollars....
With these significant cost reductions, cash flow breakeven is estimated at c.$33/Boe in 2020. With realisations in the first quarter of 2020, the cash flow breakeven falls to c.$25/bbl for the remainder of the year.
Squif The Thistle is definitely finished. No way back now too much cost for a platform that was basically a big washing machine.
They like it .SP over 13p already .
Some say excellent hedge and some say poor, all I know is he's called AB
Agree Squif....and that Going Concern Period is till March 2023....very relaxed with all that. GLA
I can see 7p being honest it is a bit of horror story I was expecting a 100-200 million net profit.
I will double up today
Agree Epip. I think they will still definitely bring back Thistle at some point. Overall the positives outweigh the negatives. I will add some more.
Still standing by my closing price prediction of 13.5p , I posted yesterday after a few drinks !
Chaps/Squif - Remember that the reserves write-down is based on a decision not to bring prodution back online at Heather/Thistle/Deveron, as production costs are higher there. When Brent goes back up, they could bring them back online and write back the reserves writedown.
Capex/Opex is cut even more ($30mill and $40mill resp.) from the March update. There's nothing not to like about the revised FCF breakeven levels. My favourite gripe is their useless hedging strategy and they're always sleeping at the hedging wheel. Operationally that's great execution and awareness of a low price environment, and have cut expenses a lot. If they'd hedged even 50% of 2020 production, as almost every shaler has done, we'd be in a much better shape, debt-wise.
Agree KO...a very assertive report.....Enquest on the front foot!
Weekness on that update ! That actually sends a very strong message to the market basically saying we can handle this low oil price period with ease !
I’ve been here years and never read a more positive RNS
This is very positive Squif
The two-well drilling programme in Kraken’s western area is underway and expected to contribute production in the second half of the year, partially offsetting the impacts of the planned maintenance shutdown and natural declines.
I might buy some more today
Let’s see.
I will some more on any weakness.
Ammu - if you had been here longer than 2 weeks you would know that it is very difficult to predict how the sp can react