Member Info for January24

I have just asked the company to put a RNS out , responding to the Levy and confirming how it will effect Enquest.
I mentioned that the likelyhood is that our stock is being "shorted"and as a shareholder I would lke a statement to stop this.
Lets see if we get one !

Goldman - Jeff Currie been calling $125 oil for weeks. His base case for early summer.
9 Point Energy Fund - Eric Nuttall been calling $150-$180 for a long time.
Have we begun the journey today !

Good point ukbbbb,
We must remember this tax is only relevant for 7 months of 2022.
So taking romarons £ 300m profit after costs etc .
We are only interested in the 25% Windfall Levy as we are protected with tax credits from CT etc.
25% of £300m = £75 m However only 7 months So £75m divide by 12 x 7 = £43.75m
Now deduct investment expenditure relief ! You could end up paying "bugger all"
This is becoming such a small issue !

And on your example romaron,
The remaining £75m, we will claw back 91p in the £1 for any new project investment costs. I assume that could be new drilling to produce new oil from an existing asset. So much less < 75m would be paid. Half ? ! ?

Windfall Tax Levy -
I got around $2 on the price of Brent should pay for it !

We got a $2 increase in POO today, so back up to 35p please . Production 18m x $2 = $36m

Yes your right romaron,
You and Indy can see through the it too !
A lot of Banana's on here today !

Indy,
You are spot on !
I have copied your quote and edited.
"Enquest are now paying 25% tax on profits rather than no tax and much of that will be offset by investment."

I guess they will invest a bit more in the next 12 months now as it's subsidised. Not knowing any revised investments, however I can still only get this cost to Enquest around 20m - 60m.
Say Profit 500m x 25% = 125m - (invest 100m) minus claw back = circa 35m tax bill - big deal !

I quote from the government web site !
I was quoteing the 91p in the £1 invested.

"The new 80% Investment Allowance will mean businesses will overall get a 91p tax saving for every £1 they invest – providing them with an additional, immediate incentive to invest. "

Seems we were both correct.
However you fail to show numbers to validate your comment "Getting Hammered". I guess it is because that you have done some maths and see that it is NOT really getting hammered !
This is all NOISE and will be finished with in a matter of days !
Many TLW and HBR posters paying us a visit today to gloat. L3 is one of them !

Correct AA,
I got promoted for calling out the rubbish posted here without any numbers.
ENQ will fine tune their investment plans to claw back as much as they can on the 90% tax relief.

Rather than post emotion lads.
Do some maths - show me how much ENQ will pay !

L3 can't read properly but calls others out for it !

Hi L3,
Your first paragraph is what I said in my posts. 40% tax now plus new 25% levy.
Secondly please get your facts correct ! Your 80% investment figure is wrong. Let me quote the chancellor -
"For every £1 energy companies invest, they will recoup 90 per cent in tax relief, Sunak said, adding the more they invest “the less tax they will pay”.
Now I return the quote you gave me - Please read things correctly !
You are wrong ! What is your deffinition of " getting hammered". ???
Absolute rubbish . Enquest's extra tax due to this Levy will range from a few million to tens of million pounds !
Max 25% declared profits minus the Investment allowance !
Give me some figures L3 , like I did ! What's your mathe here ?

Hi L3,
Your first paragraph is what I said in my posts. 40% tax now plus new 25% levy.
Secondly please get your facts correct ! Your 80% investment figure is wrong. Let me quote the chancellor -
"For every £1 energy companies invest, they will recoup 90 per cent in tax relief, Sunak said, adding the more they invest “the less tax they will pay”.
Now I return the quote you gave me - Please read things correctly !
You are wrong ! What is your deffinition of " getting hammered". ???
Absolute rubbish . Enquest's extra tax due to this Levy will range from a few million to tens of million pounds !
Max 25% declared profits minus the Investment allowance !
Give me some figures L3 , like I did ! What's your mathe here ?

I'll buy yours at 20p Ammu,
How many you got ?
A few hundred !

lol BP revenue $200B
5% of = $10 billion
Still 6-7 times our revenue !

As I type.
The MM's are playing us !
Huge tree shake, stop loss's being triggered - I am not phased.
Very little effect on Enquest.

BFATH1 - Even less tax due then !

Auson,
I have been on the government web site - it is for New oil projects ! = New Oil
My assumption is that could include new drills as it equals new oil !
I think Bressey should qualify as would Bentley, no problem.

This is just NOISE, boys !
Lets look at the numbers !!!
We are protected against the current 40% by our tax credits - No tax to pay 2022.
The new 25% profits Levy (windfall tax) . Lets say our profits are going to be around £600m ( $755m)
So 25% = £150m . How much do you think we will spend on new projects/drilling in the next 12 months ?
Maybe £120m (90% except from new tax) -- So we would pay windfall tax of only £42m .
Remember the 12 months start from Today (Jan1st to 24may 2022 is not included)
Finally if we spent the full £150m in new projects/drills etc we would only pay a tiny £15m.

I think the opposite is true - This makes us a Takeover Target ! mark my words. Someone could save a lot of tax buying Enquest !

This is a huge tree shake for us. Really not neede. Just market trying to take advantage.
BP share price hardly moved. Indeed was positive last time I looked.
Current UK tax is 30% corporation plus another 10%. Total 40% . Enquest is protected from this 40% by it's "Tax Allowance Credit" This windfall tax is an extra 25% on top.. However you can claw back 90% (of that 25%) if you invest in the UK North Sea on new projects like Bressey etc etc . We are going to do this anyway !!!!
However for the likes of BP and Shell. Now they may want to invest more in the North Sea to claw back this 90% saving on the 25% windfall tax. They may save billions by investing more ! Could they buy some of our assets ?