Member Info for mrc_mrc_mrc_mrd

Looks like yet another year of the Tom Cross era will pass with no rewards for long suffering shareholders.

It would be a mercy killing at this stage.

Next stop looks like a placing at 0.1p or liquidation.

AIMVHO

https://www.reuters.com/business/sustainable-business/has-green-hydrogen-sprung-leak-2022-12-22/

Not perfect after all…

Valuing based on 2p is flawed for sure. It all depends how and when those barrels will be produced.

Lol - “could well be monetised”

Maybe you mean relinquished?

Stevo - lease costs are essentially capex (and are allowable as such under EPL as I understand it. The principal should not be included in EV IMHO. Even a bought and paid for asset has costs associated with it.

Fair enough to include the contingent consideration due (discounted appropriately).

In any case, EV is low here for the amount of cash that is being thrown off.

I agree Auson…cannot stand her, and Chilting fits the fan boy type.

2-3p minimum I think. 3p would cost 56m which seems affordable and sustainable.

This time last year he made a series of buys so he may not be done yet!

I can’t fault AB. He buys low and I suspect will end up selling high once his job here is done.

A very welcome buy signal IMHO.

The rationale for the deal looks good IMHO, diversifying portfolio and increased scale.

Details. Bit lacking from what I have seen on the future. They are buying 15-20k production but how long does that last. And how high are the operating costs and decomm costs.

£1 by Friday lads?

Nice buying opportunity for those with dry powder. Nothing has changed since yesterday except the SP.

BofA seem to like buying high and selling low so not sure why anyone would pay much attention to their opinion!!

KO - it’s not a good look going back on your target.

Lol, in what way is “Enquest really not helping itself”?

By producing to targets and having costs come in under budget??

https://www.linkedin.com/posts/enquest_lhyts-enquest-nztc-activity-7009182316405137408-d3tO

https://www.energyvoice.com/oilandgas/north-sea/469660/harbour-energy-licensing-round-windfall-tax/

From price action maybe it is a duster?

Stevo - thanks for your reply.

Only the EPL part can be offset at the point the eligible cost is incurred. The rest is once the field is in production and its ring fenced to that field. That’s my understanding.

From the ops update a couple of weeks ago (post tax update):

"Building on our excellent operational performance and deleveraging during the first half of the year, we are on track to deliver on our 2022 targets. Supported by the successful refinancing of our capital structure, we continue to progress towards our net debt to EBITDA target of 0.5x, which will enable us to consider our broader capital allocation priorities, including potential returns to shareholders in the longer term.

"Looking ahead towards 2023, we will maintain our disciplined approach, focusing on low-cost and quick payback organic opportunities as we plan our well work programmes for Magnus, PM8/Seligi and Golden Eagle. We continue to make good progress in maturing our infrastructure and new energy business in a capital light manner.

"While the recently announced increase and extension of the duration of the Energy Profits Levy is particularly disappointing and threatens the delivery of UK's twin objectives of long-term energy security and decarbonisation, we remain committed to the UK North Sea and delivery of value to our stakeholders."

Well the company were aware of the EPL when they reiterated their plans at the end of November regarding debt levels. And also their intention for shareholder returns.

You mentioned lease liabilities and deferred consideration payments. Could you explain why you are so concerned about these items?

I personally agree that debt reduction will continue in 2023, however I do expect some growth spending which will at some point bring us back to that 0.5x target.

Lastly, ENQ will not be paying 75% tax because Kraken lease and capex can be offset. We have some great assets to develop which will reduce EPL burden and will require some debt financing.