Member Info for colebrooke1972

Peer debt:

Tullow Debt $2.9 Billion @ 1.8 X EBITDA!
Premier Oil Debt $2.15 Billion @ 2.4 X EBITDA!!!

Mavrik- ICE Low Sulphur Gasoil front month looking good will rise into next year in anticipation of IMO2020 demand

All shipping companies must have contingency plans in place and lock up any reputable supply of #IMO2020 compliant 0.5% < low sulphur fuel. Still not sure how much chaos will take place as we approach January 2020.

Kraken low sulphur oil will be in demand.

https://shipandbunker.com/news/world/611722-imo2020-grade-fuel-supply-still-a-major-concern-for-shipping-associations

IMO 2020 game changer for Kraken and EnQuest. The asset will be in demand and they haven’t even drilled all of its prospects (2 drills on the western flank next year).

Load up like AB IMHO

READ: How IMO 2020 drove up the price of heavy, sweet crudes

The U.K. grade that fits the bill is called Kraken — pumped from a field in the North Sea operated by EnQuest Plc. Its sulfur content is a little over the 0.5% required under new ship fuel rules, and it will only ignite at a high temperature, making it potentially good for ship fuel.

Positive Feedback

“A cargo has already been sold to a ship owner and thus we remain very optimistic regarding Kraken’s utility in this market,” says Russell Wall, a commercial and marketing manager at EnQuest. “We have received positive market feedback.”

That shipment was bought by Euronav NV, which plans to use the crude as part of a mix to produce fuel that complies with next year’s rules. The barrels are part of a massive 420,000 ton cargo being hauled to the Singapore area by one of the biggest oil tankers on the planet, the Oceania.

ENQ are paying down $35 million of the remaining scheduled amortisation at the end of this month. Another significant chunk of the debt gone.

With production across the portfolio increasing, Brent crude staying in the mid 60’s due to increased geopolitical risk, ENQ’s free cash flow generation increases exponentially.

The debt to EBITDA ratio should drop below x1.5 by the end of 2019.

To have reduced the debt by x1 EBITDA ratio over 12 months will be a significant achievement.

I can’t see the share price / market cap staying in this low range for much longer.

From the half year results:

End June net debt reduced by $136.6 million from year end; net debt:EBITDA ratio* of 1.8x
§ At 30 June 2019, net debt was reduced to $1,637.9 million (end 2018: $1,774.5 million) with cash and available bank facilities amounting to $248.5 million (end 2018: $309.0 million)
§ At the end of July, the Group’s credit facility had reduced to $615.0 million following the early repayment of $65.0 million of the scheduled amortisation, with $55.0 million repaid in June and $10.0 million repaid in July. The remaining $35.0 million of the scheduled amortisation will be paid by 1 October
§ Net debt:EBITDA ratio* at the half year was 1.8x (end 2018: 2.5x), ahead of target to be below 2x by the end of 2019

PMO getting battered short positions on Premier are at 5.59%

ENQ are paying down $35 million of the remaining scheduled amortisation at the end of this month. Another significant chunk of the debt gone.

With production across the portfolio increasing, Brent crude staying in the mid 60’s due to increased geopolitical risk, ENQ’s free cash flow generation increases exponentially.

The debt to EBITDA ratio should drop below x1.5 by the end of 2019.

To have reduced the debt by x1 EBITDA ratio over 12 months will be a significant achievement.

I can’t see the share price / market cap staying in this low range for much longer.

From the half year results:

End June net debt reduced by $136.6 million from year end; net debt:EBITDA ratio* of 1.8x
§ At 30 June 2019, net debt was reduced to $1,637.9 million (end 2018: $1,774.5 million) with cash and available bank facilities amounting to $248.5 million (end 2018: $309.0 million)
§ At the end of July, the Group’s credit facility had reduced to $615.0 million following the early repayment of $65.0 million of the scheduled amortisation, with $55.0 million repaid in June and $10.0 million repaid in July. The remaining $35.0 million of the scheduled amortisation will be paid by 1 October
§ Net debt:EBITDA ratio* at the half year was 1.8x (end 2018: 2.5x), ahead of target to be below 2x by the end of 2019

It is clear the well is being suspended as a future producer.

Shenanigans this morning with the spread.

Some large AT trades going through.

Should be on for 24p on this leg see if it breaks...

The bid / ask was all over the place during the first few minutes after open with a massive spread. No A trades kicking in yet like yesterday. Perhaps the seller is gone? Me thinks something is afoot...

Anyone know if ENQ will RNS spudding the Magnus wells?

Currently drilling in Malaysia don’t think they RNS’d those?

From Cairn results: " ... Significantly improved facilities performance at Kraken together with the DC4 wells coming online has resulted in more continuous periods with production rates above ~40,000 bopd being achieved.”

ENQ must now be pushing over 70,000 boepd.

Great post hitman. The sp should reflect the H1 progress on debt.

The market now knows Kraken is delivering stable production and that the resource estimates now look solid based on field performance.

Apparently bullshine coming out of Aramco.

FT.com

Four people close to the Saudi Arabian energy ministry cautioned, however, that the report, which cited unnamed sources, was optimistic and did not fully account for the severity of the damage at the Abqaiq facility.

One of the people said full repairs were still expected to last until at least the end of October and that the 70 per cent figure included utilising oil held in storage by the kingdom, rather than a swift resumption of such a high percentage of the lost output.

Another person said the report was an attempt by Saudi Arabia officials to calm the market by presenting a rosier outlook, fearing the US and its allies could flood the market with their emergency oil reserves.

Part of the new more positive messaging may be linked to the desire of Crown Prince Mohammed bin Salman, the country’s de facto ruler, to push ahead with the planned stock market listing of state oil company Saudi Aramco, they said.

https://amp.ft.com/content/e7d4f534-d959-11e9-8f9b-77216ebe1f17?__twitter_impression=true

Pelle, it’s share profits (one word) it’s blocked on here for some reason. You get the first 3 articles free. You need to repast the link below and close the share profits to one word:

https://www.share prophets.com/views/44811/enquest-is-showing-long-term-recovery-potential-speculative-buy

EnQuest is showing long term recovery potential - speculative buy

https://www.*************.com/views/44811/enquest-is-showing-long-term-recovery-potential-speculative-buy

Oil to stay higher for longer:

- Drawing down Saudi storage, especially outside Saudi Arabia,
and
- Refiners drawing down their storage hoping for lower prices in the future

and

- China drawing storage for the same reason

means higher oil demand in Q1 2020 than usual!

- leads to price support in Q1

Aramco to Face Weeks Without the Majority of Abqaiq’s Oil Output

Anthony Dipaola
September 16, 2019, 12:37 PM EDT
Attack cut Saudi output 50%; kingdom restarting idled fields

Saudi Aramco is growing less optimistic that there will be a rapid recovery in oil production from the weekend’s attack and now faces weeks or months before the majority of output is restored at the giant Abqaiq processing plant.

All eyes are on how fast the kingdom can recover from the devastating strike, which knocked out half its production, or roughly 5% of global supply, and triggered a record surge in oil prices. Initially, it was said that significant volumes of crude could begin to flow again within days. However, Saudi Arabian officials told a senior foreign diplomat they face a “severe” disruption measured in weeks and months.

ENQ most recent high was 24.42p on the 22 July 2019. Brent averaged $63 that day.
This was before ENQ most recent results update for H1 2019:
Production 68k boepd +27%
Revenue $858 Million +57%
EBITDA $526 Million +69%
Cash generated $426 +34%
Net debt ratio reduced to x1.8

Brent now heading for $70 (currently $68).

ENQ will break 24p this week.

Brent is now trading over