Excellent post on HBR!! - enquest toast13 Apr 2021 15:05
: An Old Man Asked For This To Be Posted Here !Today 14:02
January.
Would add that Enquest interest bill is $170m per year and also need to repay BP.
There is a risk that it could get very messy with creditors. Any company where debt is 10 times its equity is a very high risk play and exposed to dilution. Harbour net debt is 0.6 times equity value. Totally different risk pattern.
If oil stays above $65 for 2-3 years, Enquest share price could easily be back to 50p plus. However if oil drops back, Enquest is Toast and will be taken out by creditors. Harbour has relatively low debt and can withstand another winter.