Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Agree Romaron, and beware the rig whisperers sometimes those further down the chain hear all sorts and each adds their own twist to events.
The EnQuest statement is very different to the blatant lies and misinformation posted by some on here.
Good to see the CEO putting his money where his mouth is yet again.
40% of production hedged with 3.9 million barrels at a floor of $66.
Hi Romaron,
Agreed and I think the timing of the CMD is no coincidence. The company has based on the H1 results a lot of positive news to share. 12 months on from the Magnus acquisition and Kraken sorted with record production there is a lot for them to shout about. We know the company has ramped up production from Magnus and reduced Opex significantly. On Kraken the issues with the FPSO have been sorted and according to Cairn producing at 47k+ bopd.
The CMD may result in renewed institutional interest which we know the company needs. My original point is that it may also open up re-financing opportunities at better terms.
It wasn’t long ago that debt was over $2+ billion combined with production difficulties! With debt now being reduced significantly @ $1.6 billion at the end of June and record production it makes EnQuest a much more attractive proposition IMHO.
We have the Capital Markets Day in November where management will be highlighting the ongoing business momentum namely; increased production and debt reduction.
I believe they will also take the opportunity to refinance the debt going forward. I would imagine this would obviously be in better terms than the existing finance. I think this will be the case based on the Q&A from the half year results:
James Thompson, JP Morgan Chase & Co, Research Division - Analyst
... And how does that factor into how you're thinking about the bank facilities at this point in time? Are you looking to pay back the final $440 million? Or are you trying to refinance that stub at some point next year?
Jonathan Swinney, EnQuest PLC - CFO & Executive Director
think in terms of your next question on capital around refinancing, I mean, clearly, at the moment, our focus has been repaying debt, and we've been doing that consistently and successfully. We will continue to do that. Obviously, we will look at potentially refinancing in due course as we go. I think that will be always incumbent upon us to be able to do that. But at the moment, we can certainly use the current lending facility and just repay that on the current schedule. And as you've seen, we've actually been doing it ahead schedule, which just certainly meant that the -- from a banking perspective, certainly the lenders have been extremely happy with our performance around that.
So we will continue to look at that, obviously, in terms of -- if we look at the cost of that and the size of the debt that you could be able to refinance, I mean, on an ongoing basis, we will do that. And if it makes sense for us then clearly, it's something that we could execute in due course.
Kraken could be getting close to the pivotal 50,000 barrels of oil per day!
From Cairns half year results:
“Subsequent well testing in May confirmed the gross well production capacity in excess of 47,000 barrels of oil per day.”
The words “in excess” resonate here EnQuest could be getting there...
https://www.google.co.uk/amp/s/finance.yahoo.com/amphtml/news/edited-transcript-cne-l-earnings-193204877.html
The CEO buying £2.5 Million at an average of circa 19p.
Again follow the money and not the unsubstantiated nonsense written by some on here.
Canaccord reiterate ‘hold’ they have not downgraded to ‘sell’.
Price adjusted along with other oilers they cover.
Barclays target was 11p in the summer and EnQuest hit 24p.
I don’t think AB will stop buying either which is a huge vote of confidence in the future of the EnQuest business.
The new Chairman must have started doing the ‘rounds’ by now...
Money where is his mouth is. The CEO AB doesn’t appear to be a man who likes to lose.
There is no way he has bought £2.5 Million of shares in under 12 months thinking that his investment or more importantly his company will fail.
There is only one way this price is going and that is up.
Some of the nonsense posted on here is laughable.
Yet the CEO continues to buy an ever increasing amount of insider buys £2.5Million in under 12 months.
Significant whatever way you look at it.
What’s missing is including upside from additional production from planned drilling and booking additional reserves:
Malaysia PM8/Seligi 2 wells drilled in H2 additional production reserves to be booked.
Magnus 2 wells being drilled in Q4 plus 1 next year additional production plus reserves to be booked.
Kraken 2 wells being drilled next year additional production plus reserves to be booked.
?Yet another purchase 763k by the CEO today £2.5M of buys in under 12 months!?
Significant outlay of capital from a CEO. Once ENQ de-levers debt (whatever the magic ratio will be possibly below x1.5 EBITDA) it will rerate.
In August oil demand reached a new record of 102.2mbpd - IEA
Latest buying from AB brings the CEO’s total to £2.3 million spent in under 12 months.
Nice chunk of change.
EIA report lowest refiner throughput since 2015 for this week.
2nd highest gasoline demand for this week.
2nd from bottom all time net imports.
Large product draw across gasoline and distillates. Refiners not drawing crude due to maintenance. As posted yesterday several commentators are pointing to large crude draws in the coming weeks.
What Is The Real Impact To The Global Oil Market?
At the moment, the impact to the global oil market is that global products are now net short ~1 mb/d. The refinery throughput cut in Saudi is real and Saudi is now looking to buy on the spot market for its refined fuel needs.
The chain reaction to this is that refining margins have skyrocketed implying higher crude demand for the refineries that can ramp-up throughput.
This has, in turn, translated to very elevated US crude export arbs, which will support the US crude export volumes into year-end.
As US crude exports increase and US crude imports remain around ~6.5 mb/d, US crude storage draws will accelerate when refineries ramp-up throughput again in November. At the moment, the sensitivity of the drop in US crude storage puts the range between ~350 to ~380 mbbls depending on your US crude export assumption.
The change in US crude storage will also be a good bellwether indicator for the rest of the world storage. We think the rest of OECD will account for the other half while the US drops ~40 to ~70 mbbls by year-end.
So for the time being, the impact is being felt first in the refined product market, which is contrary to a lot of people's initial perception of the situation. But this will soon flow into crude prices as crude demand increases and crude storage drops.
https://seekingalpha.com/article/4293786-saudi-arabia-oil-outage-demystified-take-impact-global-oil-markets
From HFI Research: Gasoline normally builds for this week, so if EIA reports -3+ mbbls for gasoline tomorrow, then this comes entirely from stronger product exports.
This means @anasalhajji take on Abqaiq outage impacting refined product first before crude was absolutely correct.
Hi Romaron,
Also appreciate your recent posts bang on as usual.
Waiting game here.
Link again to Transcript:
https://www.cairnenergy.com/media/2508/half-year-results-2019-transcript.pdf