Member Info for January2

I am still angry with the accountants at Enquest for presenting our results with a negative NAV. They surely could have presented the numbers to avoid this. Impaired less for example !
Londoner7 , I think you will find Moody's use different words when the NAV goes negative. The word that is used is "Technical Insolvency". Yes we are, with a negative NAV , Technically Insolvent.
Please do not get this confused with "cash insolvent" which is different. We are not cash insolvent.
I copy the quote from Wikipedia;
"It has been suggested that the speaker or writer should either say technical insolvency or actual insolvency in order to always be clear - where technical insolvency is a synonym for balance sheet insolvency, which means that its liabilities are greater than its assets."
Crossing this line was damn silly . It must now have raised a "flag" with our creditors. In addition , if we need to borrow money it will cost more.
Technically we have crossed a line. May we move back across it, bloody quickly !
Unhappy
JAN

Hi TWalbyoff,
NO , I can't see any major write-downs.
Obviously normal balance sheet write-downs will happen.
Indeed it should go the other way as asssets become more valuable with a rising POO. Generating more FCF and Pushing down debt. Thus raising NAV .

Pelle,
In answer to your question.
Assets minus liabilities show in the figures today the company has a net asset value of - 58m.
Yes negative. In my opinion that has been the main driver for the decline in the SP today. POO also.
I think AB wanted to get it all "write-downs" out the way and start now from the bottom (net asset value basically nothing). He can now build the value (NAV) back into the accounts from here.
So in answer to your question. It is a problem today , but not a problem for the future as the NAV will build back into the accounts from here . The rate of build depends on POO. The share price will reflect the build in NAV. Therefore it's rate of climb will depend on POO too.
In summary - today should draw a line in the sand from which the NAV and SP will grow.
The stock market always has a high priority for the NAV of a bussiness. I, for one, have neglected this , and got too focused on smaller operational issues which have a tiny bearing on company valuation.
All the best

JAN

Must be the "write downs" effect on the net asset value.
Nothing else warrants a fall in SP.

I give up !

Watch and learn
Mr Happy Investor.
A nice big rise today.
AND, try being happy or change the name !

L3,
5.1m hedged at $36 will be history very soon.
It is around 85 days production .
This hedging is likely to be nearly all worked through by now anyway !
A past negative , but not one going forward from today.

romaron,
Thank you for your kind words. And your earlier calculation of 13.8p
However I am looking for 10% + on the closing price of 13.12p . Giving 14.43p now for tomorrow !
As for "guru status". I fear it would not last long ! I would surely make an incorrect prediction on POO or the SP within days !
All the best
JAN

Did you catch the big jump up in the SP at the close ? Check it out !
The market is getting ready for a big spike in the ENQ share price tomorrow !
Or my names not Mavis !

Krakenoil (my brother),
Are you sure you read the EIA data correctly. Those -minus's could they have been just a dream ?
I ask because POO has just fallen below $45.

BST of course !
As always

londoner7,
I think the detailed posts given on this board by yourself and others are of great value to ALL holders and anyone interested in understanding Enquest's business.
As for ramblings, they sometimes can also be interesting and very often funny. Sadly some of us just can't help it. Indeed it helps us pass away the time.
One poster on here has got the perfect balance of ;
- Detailed knowledge
- Funny Ramblings
That of course is the "Therapist".
All the best to everyone for tomorrow's results and I see Brent at $76 tomorrow, by around 10.42 am.
JAN

Cheers romaron,

Your 10.04 post was an interesting read too.
I just think that the market will be relieved to see that all is normal and well.

Well I am expecting tomorrow's results to be pretty boring. In a Nutshell we are paying all our bills and servicing the debt, but not reducing the debt or adding to it ! It should show we don't need any more money and have survived the crisis.
I then think the market will love what they hear although boring. and a SP jump of plus 10% will be seen. Never had such a big rise been seen on the back of such boring ordinary results !
My thoughts and hopes for tomorrow !
ALL THE best
JAN

Squif,
People have been living off the magic mushrooms since the 1960's. What's new ?
Have enough of them and they say you can even see flying saucers. What's new ?
Oil was around then , is around now, and will be around for decades to come !
The problem is - "The Cycle" !!!!!!
Many of us did NOT buy at the bottom , and are getting fed up with waiting for the top !
But wait we will have to do, if we want to see a healthy profit. All I know from life experiences is - "When the tide turns, it can move bloody quickly" So I carry on waiting for my cycle.
They talk of roughly 10 year cycles. If that's the case then I have been waiting around 6 years, so only 4 to go, Maximum then.
Should see my "top" by 2024 latest, but a very healthy large climb up in value the year or two before.

Yes I think we are !
Maybe Thurs will change things

Agreed Londoner7.
Both companies are very "lean" , so No real cost savings on a merger. Both are also very very unlikely to sell " on the cheap". - NO I can't see it !
I can see why you posted though hitman. Interesting article. Just not us !

Delek,
Buy on the deal. They like a good price. Their negotiators did well in acquiring Ithaca for a price on the "lower end" to the value expected buy some shareholders at the time. I remember as I was a large Ithaca holder when the Delek deal was done. Some holders posted that "we went to cheap".
Therefore I can't see AB selling at Delek prices !

Londoner7 - your post was a good read , thanks.
Thanks to you too chilting.

Used to say " Never invest in a company where the Directors ( he used to say bosses) have NOT put a decent slice of their own money-in "
In my opinion it was great advice then and is still great advice today !
PMO Directors have a tiny share holding when compared to ENQ directors. Indeed when you take off bonus shares given then the actual cash money invested by PMO Directors is a joke. Why ?
I believe their motivation is their high paid jobs which they want to secure for the future. Pushing the debt down the line and the BP acquisition all feeds into keeping their great jobs. The cost is covered by the share holders and sinking Share Price.
Enquest is very very different. Our directors hold a massive amount of share and are therefore aligned with us the share holders. Indeed AB has invested £millions of his charities money as well as his own into shares of ENQ. We know his charity is close to his heart , so therefore he will do all he can to ensure his investments GAIN in value and worth.
Glad I have my money here. Our day will come, I am banking on it !
ALL THE best
JAN