Member Info for hitman1a

Over Q3 2021 we should earn say $50m/mth FCF ( can't be sure, as the company has never told me) and $50m via the OO
So $200m/ $1.37/ say 1.894m shares gives 7.7p.. boost to balance sheet.. might move the SP to 25p

Then we also have the accounting deferred tax bonus.. that together with Q4 earnings should get us to 30p by Xmas.. perhaps even a bit more.. I actually can't remember when Enquest has put together a decent set of full year accounts.. so perhaps March 2022 is the real deal.. We need much more evidence to justify a higher SP, but I believe over time it's coming our way.

Yep, Barclays is showing now in Corporate Actions.. respond by 20 July.. ( think i will reply a bit beforehand)
Voluntary action.

Nothing yet from Hargreaves L either .

Give them a couple of days.. nothing from Barclays yet either.

That deferred tax working is worth a great deal. ie: "EnQuest Group would have had net assets of $278.7 million," as of 31 Dec 2020.

Add in $50/mth for 2021 and do we target shareholder assets of say $900m at 31 Dec 2021.. ?
Divided by 1.875b shares gives us 48c, .. /1.4 gives say a new broker target of 34p (from 27p)

GL... clearly broker targets in 2022 will be higher as net debt gets paid down more substantially.

GE NPV increases by $150m for a 20% increase in oil price, ie moving from $50 to $60.

Brent at $75 , bodes well

I've noticed a lot of my suppliers are quoting higher prices . Some don't want to push the retail prices higher , but others are doing so and cutting my wholesale margin too. Many people will experience inflation on basic items . One supplier is pushing up prices 70%.

I think OPEC + might have considered $65 a fair price last year, but it's nearer $75 now as their shopping baskets are much dearer now.

11. Financial effects of the Capital Raising and the Acquisition
On a pro forma basis and assuming that the Transaction and an RBL drawdown of $600 million had taken
place on 31 December 2020, the EnQuest Group would have had net assets of $278.7 million, compared with
net liabilities of $64.6 million reported as of 31 December 2020. Please refer to Part 9 (“Unaudited Pro
Forma Financial Information”) which contains an unaudited pro forma statement of assets and liabilities,
prepared to illustrate the effect of the Transaction and an RBL drawdown of $600 million on the assets and
liabilities of the EnQuest Group as if each had taken place on 31 December 2020.

EnQuest has hedged a total of approximately 9.9 MMbbls for 2021 predominantly using costless
collars, with an average floor price of approximately $59/bbl and an average ceiling price of
approximately $68/bbl. For 2022, EnQuest has hedged a total of approximately 3.1 MMbbls using
similar structures with an average floor price of approximately $65/bbl and an average ceiling price
of approximately $76/bbl.

New RBL of $600 million agreed with initial coupon of 4.25%;

Weird because as I asked for smaller amounts the price got slightly lower. picked some at 21.05p ?

Would have paid more to complete the last £650 ... gave a price 21.11p.. but couldn't complete..

Tried really hard to buy some at the end of the day.. got £2.5k, then had to break it down to smaller amounts.. £1.3k, then £650 and then it really wouldn't let me buy anymore. It rejected £650k a doz times.. What would happen if there was some good news ? Like 1H 2021 profits.. in early Sep 2021.

Weird.

https://www.globallegalchronicle.com/enquest-plcs-us750-million-borrowing-base-debt-facility/

Think our hedging strategy is outsourced.

"The Ashurst team was led by energy financing partner Huw Thomas (Picture), supported by partner Adrian Lawrence and assisted by senior associates Harriet Gray and Grahame Fischer and associate Ben Pearson. Hedging advice was provided by global markets partner Kerion Ball and associate Jean Tan, and associate Shayaan Zaraq Bari advised on tax matters. The Ashurst team worked closely with EnQuest Commercial and Legal Director Stefan Ricketts and Senior Lawyer Dawood Ahmed."

Not sure if anyone has said it's expected "soon", but our existing facility matures in Oct 2021. If we get a new one for say $750m ( 5 year maturity to say Oct 2026), that gives us room to complete the GE deal unlocking the NPV and means we can also repay the existing bonds which expire in Oct 2023 when the time comes (based on current FCF), without any further discussions. And also room for another decent acquisition too. I assume the share price will increase.

AB said the process was on-track . so only really 4 mths left.. .. best hold as the new credit facility could be agreed at anytime. We would probably need 6 weeks notice for the OO so early Sep ( say 2nd Sep like 1/2yr accounts) is the latest date I could provisionally book in..

On Chariot... doing a 1 for every 6 held.. perhaps an indication of what Enquest have penciled in as well .

Takes our shares from 1695m to 1977m. We would then need a market cap of £600m to get 30p /share. (£500m/25p).
Guess it's possible by end of Dec 2022 or beforehand.

Still we have a very busy Q3 2021 to look forward to.. Fixing umbilical at Gadwall., Malaysia pipe and riser, GE acquisition , OO, RCF renewal. .. get it all done and then we can have a re-rate in Q4 2021 . Looks like we will travel sideways like 2019 for many months, Deleveraging without any further write-downs for 18 mths, add a bit of equity to the balance sheet (say $1b for 2021 and 2022).. and 30p is possible again , but a bit later than expected.

Ours will be paid off in full according to JC by Oct 2023..

Saw a headline just come on Bloomberg. Plenty for AB to look at if we get a decent sized new $750m RCF arranged.

One more deal should see us near £600m market cap with say 2b shares.. 30p

"1" share trade showing at 17.76.. potential RNS in the morning.

Ok Pelle , you must have been Q2,

Basically no dividend pencilled in yet, but part of our capital allocation at somepoint in future. Same answer he always gives , He said your $50m/mth was on the high side , He didn’t correct the number , but I guess yours includes GE,

This was covered in Q3 of Q&A, an ex employee/shareholder had participated in 2 rounds of fund raising and questioned the need for another , AB said the $50m was necessary ..some reference as part of our capital structure all stakeholders participate. I took it as it was going ahead , Besides our banks can’t arrange the funding and then pull our part away at the end , . But he confirmed GE was a very good deal .

What's the NPV of GE at $65 rather than $50. Perhaps the extra cash flow over 6 years is worth 10p/share imv. It looks like a good deal, as AB said. That's in addition to the $100m mentioned.