Member Info for laidback

Even in worst year ever for oil, debts still reducing

2021 will have much higher oil price. Cap ex will be minimised meaning all FCF will go to reduce debts

Back of fag pack calcs show net debr down to $1billion by end 2021

If NO MORE additional drilling, debts will be paid off by 2024 and should still be making at least $300m FCF on 40k daily production and oil at $60 .... and dividend of 10p per share by 2024 ?

I take it that both Kraken and Magnus both offer long term additional production volumes subject to drilling, as they are both monster fields ?

No Enq has mkt cap of $200m

Look at FCF last year FFs, wss twice that !

This will be 30p plus come end 2021 !

Will be interesrimg to see if Enquest confirm FCF above $27 for 2021 !

Read November operations uodate

As well as Bressay existing portfolio offers significant opportunities for long term growrh. Will materialise when oil prices are higher

Enq are keeping a lid on production in 2021 as prices are low .... why sell excess production at low prices. At $50, Enq should pay debts down by over $300m in 2021. 2021 is a tear of consolidation.

In 2022, Covid will be history and Brent at $60 plus. Then increase production organically to 60,000 plus barrels per yesr.

What will it cost to develop this ? If Kraken FPSO is used, it it a matter of just drilling producer wells ?

$51.29

Going up !!

30p by year end 2021 ?

With Brent at this level, debts will reduce by $1m per day

End 2021 Enq will be a very different beast !

$51.12 !

mrc
They don't need to pay off all debts...another year and they can start paying divi of 5p per share

$50 is generating substantial FCF and debts are reducing all the time ....

Sp in 1 years time ? 30p I would hope

$50.78 !

We get free cash flow to reduce debt at $27

So over £1m free cash flow daily going to reduce debts !!

$50.44

If debt reduces to @$1bn end 2021 then this will be at 30p !

But at what price ?

Net debt should be down to £1bn
Covid will largely be vanquished
Brent @$60
May start paying dividends
DYOR