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Please can we STOP the negative posting. The bloody "Algos"are picking up these negative posts and pushing the SP down even further ! There is no other news out there about ENQ apart from what we post, so lets be positive.
Yes we could renegotiate the bonds but our main aim is to reduce the debt so we reduce the cost of the debt. At the moment we are just using up our assets to pay down interest on the debt, just like interest only mortgage, we need to remove as much of the debt burden as possible whist we have highish oil prices. Renegotiating the bonds might give us a quick boost but that’s it. I’d love to see Tamak’s figures turn into reality but I think that’s just a dream unless we see prolonged oil prices above $90
I think its a sure bet that AB will buy more assets or develop Bentley and Bressay, therefore, debt will certainly increase again - its just a question of when. Maybe high oil prices will accelerate AB's plans to develop new assets, especially as it may become more difficult to licence new NS field development in the future.
It goes with the territory - oil companies have to invest in new assets or slowly die.
KO, bonds could get renegotiated since enq Will be in a position of strength due to POO, especially if it continues to be the case and covenants regarding dividend / buy backs could be much less strict or perhaps completely removed. Just thinking out loud. I dont really know when or how bonds legally can be renegotiated before maturity.
Hi Pelle, Surely we need another 12 months at current oil prices to reduce the debt level enough before considering shareholder returns ! A clear published plan is fine by me. I don’t see how it’s possible otherwise specially with the current hedges in place. We should be around $1b mark at the end of the year, gives us 2022 to get the debt down to $500m or just under then we will be in a position to either pay shareholders or buy more assets? Or maybe a bit of both
We won’t receive any shareholder returns until 2023, get the Debt level down to around $500m but what we need is a published plan to return to dividends, at the moment no one knows what the plan is unless you sit on the BOD
I look at the figures, the fcf now and even at lower OP and I keep coming to the same conclusion that we are becoming a cash cow! By next year there is no reason why a dividend cannot be considered and there is NO way that the so will not be significantly higher as we will have limited debt and money flowing into the coffers. Not worried about the ups and downs at the moment as the fundament are so strong - there is very small risk here but easy upside and I think next year will be the big change in sentiment as money talks
Just remember you had a dog thing going on . . . .
Tomorrow will be brighter, my spreadsheet tells me so, although of late I am starting not to trust it.
I spend an unhealthy amount of time with my spreadsheet and scouring t'internet for a dollop of tasty Enquestt related info. It is amazing how little gets out. That is either poor comms or a really really frikkin tight ship. Lament the former but admire the latter.
I don't think I have ever reported on Amjad B at any of my illicit virtual establishments and probably out of respect. If I didn't like what he does I would derisk. I am here and risk happy. My choice, my money, my opinions. Anyhow I am agreeing that I think he iis hyper qualified and steers a good ship through oft stormy tides . . . . talking of which where's our frikkin tanker?
We're apples and pears to many other oil companies but it is the same industry. A Yorkie is still a dog as is a Great Dane. When we get peer comparisons they are a motley bunch but you can only work with what you have and perfection is hard to find in this industry. I think you have to ignore those that are so far off the scale but it is quite a simple task I'd imagine to use net debt and estimated cash flow to produce a table. It might be interesting to get a table as at end of 2021 and work forward. I'd expect us to be at the top of the table - certainly for NS. I feel I'm in a minority being happy with AB's performance and his statements. The tide has been against us for the past 5 years and to be over optimistic (like Tony Durrant PMO) would have done more bad than good imo. Crow when you have something to crow about. I like under promise and over deliver. Leave populism to the politicians. The majors will have more bearing on the overall market and able to persuade the politicians more than little EnQuest. That's why I'm glad it looks like we will partner mEquinor if Bressay gets developed. It is wrong to think they don't count in respect of our position. They are essential in fact.
This is such a strange thing to do, hardly any news about it in the press and the brokers all ignored it, so we just have to put it down to repairing the asset base/production all the while increasing debt again The market has perceived it as just another asset to cover the debt payments - we are unfortunately just a debt zombie until proven otherwise. When that will be is a wet finger in the air at the moment
Romaron, I am impressed you read and listen to so many oil peers. Debt / CFO, I agree should be around 1 in Q1. It’s bit like comparing apples and pears with Exxon. During last 5 years they increased debt 50% while Enq reduced it 50%. They borrowed for dividend. I would never ask for it.
The last AB comment I remember, we feel very confident at 60 oil! Does it mean that at 80 oil 400m can be returned to shareholders? AB, talked about dividend needs to be sustainable.. I say don’t use Exxon as example. But rather return everything that’s above x oil price each quarter. Maybe x is between 60-70 usd next year.
Another note, the GE RNS was the most boring I ever read. And that deal was like hitting the jackpot, oil goes from 50 to 80 and from now basically double Enq FCF. Why keep quiet?
Browsing I came across this: https://assets.contentstack.io/v3/assets/bltc7c628ccc85453af/blt3dbbabebb3dbed9d/611e6bf1e8898d66a7c9495c/Investor-Presentation-May-2021-v2_(1).pdf It is about an attack on Exxon (seems well overdue) and one of the main arguments is the lack of oil industry executives on their board. I reread our Board of Directors and we have a surfeit of oil & gas experience. You could argue that we are over-qualified. Exxon look bloated and complacent in comparison. I also like our representation and I have a great respect for women when it comes to spending. They can be very controlling and mean. To get to the top in a male dominated industry means they are tougher and better than many men. The other thing I think is useful to us is on page 8 under Balance Sheet. I understand what Pelle and Tarmak are discussing but for all of us it would be easier if we had a title or shorthand for what the subject is. Not me staking a claim where I have limited input but using an accepted term that is immediately understood by us in the shallow end and useful for comparison with peers. Indeed, some of you more au fait with accounting would probably be able to enhance it. We aren't asking for accuracy to the decimal point but a broader understanding and more importantly; how long have we got to wait and under what oil price regimes (prices) until us long suffering shareholders can expect a return? The acronym is CFO and is "Cash from Operations" which is then used against net debt to get a ratio. Lower is better and it is to tell how long it would take a for company to repay all debt if it used all of its cash flow from operations. I think the formula could be very helpful and make the board easier to read and is a very useful marker for where we are heading. Our net debt/CFO is due to get very attractive. We are heading towards 1X at speed imo. There is a lot to be cheerful about with this company.