Member Info for Papegoja

My take and understanding of the Swedish side is that the few retail shareholder we have here are not happy with Enguest and its Managment. Apart from the actual performance (which we share with all shareholders) we have not forgotten that we were not allowed to participate in the rights issue that took place. I also think it should be noted that previously (one year ago) it was possible to see which firms that were selling/buying shares in Sth. At the time 80% of the trade was done by robots. Today that is not possible to see but I assume the robots are still the ones driving the trade up and down in Sweden. One final point is that retail investors have confidence in the trade that takes place here in Sth. It is unclear for us how the trade is conducted in London not to mention all the politics you have over there (EPL, Labour). I think most people here look at you as a third world counrty when it comes to stability.

I thought he was using MUSD 615 as the starting point and that was August 31,

SEkforde,

I think you can reduce the debt with an additional MUSD 50 since the payment for Golden Eagle is already made.

" At 31 August 2023, EnQuest net debt increased to $615.2 million due to the July payment of $50 million contingent consideration in relation to the Golden Eagle acquisition"

I my view delisting is one way to save money. However, i do not think it is the main reason. I think it could have something to do with repurchasing Enquest shares. It will facilitate that type of transaction and for sure it will make a lot of Swedish shareholders upset (we were totally forgotten when it came to the rights issue and the reason then was that it was too complicated). In consequence with that the share price is going down today and the turnover is high in Sweden. many people would like to get out. For LTH (including AB) it could be an opportunity, just keep calm for three months.

I also noted that in the six months report the net debt was MUSD 591, on august 31 it was MUSD 615. We were also told that the payment of MUSD 50 for Golden Eagle was done. Without paying for Golden eagle we would be donwn to net debt MUSD 565 but E decided to present it like this (which was their choice), I can live with that, it is politics. Finally, the oil price is higher. I think the above is promising, if you buy shares today..

So, today I bought some more E and I expect E to start buying soon. They will get a lot of shares for the dollars they make.

To Krak,

I am quite happy with the fact that AB just provided an additional loan in the amount of MUSD 9,0 through Double Ltd. The more money he is putting into E the more aligned he will be with the rest of us and he is not getting any younger. Like the rest of us he is waiting for shareholder returns in one form or another.

Thanks Sekforde.

If anyone is following the Kraken deliveries it please share that info.

In the financial calender it states TBC and nothing more. Where do you find the 5th Sept?

So when we receive the half year results in Sept (Always unclear when E is going to inform us) I expect the following:

RBL reduced to MUSD 210 (MUSD14/m in aug and sept and adopted to the EPL);

Info that the 7% Retail Bond will be fully repaid with the additional loan (which I assume is more flexible than the Bond);

Info that the GE MUSD 50 has been paid (that would be good but will not affect the net debt as I understand it);

NET debt at MUSD 600 end sept (with this said MUSD 500 in March 2024); and

Policy in place for shareholder returns.

On 24/5 we were told that the net debt on March 31 was c.$ 678. We were also told that the RBL was at c.$282 on April 30. Now we are told that the RBL stood at c.$240 at the end of July. So E has repaid an additional c.$42 during May-July. Does this say anything else to us? Why take up a loan of c.$150? Whats the purpose?

Could there be a new deal in the cards? (That’s my guess) Could we expect them to repay thefull RBL in October meaning they will use the c.$150 plus additional c.$90 in FCF to repay it? Meaning that the debt is going down fast from c.$678 minus (42 – 90) to c.$ 546 and E will put forward a plan for purchasing its own shares? I wish!! Can it mean the debt is just increasing again? What do you people think?

AIMO,

No real comment, we had some production issues with Kraken following the report and the price of oil has also been low during this period. However a fail to under stand when and how they repay debt. I hope for the best and I have just added some new E.

From Enquest report in May

"At 31 March 2023, the Group’s net debt position was c.$678 million, a decrease of c.$39 million since 31

December 2022".

Lets see what happens its only a month away.

I expect a vague policy saying something that 50% of FCF will go to shareholder returns and they are considering both repurchase of shares and dividend. My prefernce is of course repurchase of shares since the dividend will trigger tax and will upset the public (when they are paying their electricity bills). You are right I have not med AB but I have lisened to him for almost fouryears now and he is is going in one direction which in my view is shareholder returns

When we look at shareholder returns I would like refer to the info from the Audio cast from 19th of April 2023

when they said the following ” Shareholder returns are very much within the Managements thinking after further delevering”, ”(we) anticipate shareholder returns for 2024 and on-wards”, ”Dividend is a decision for the Board and they have not yet decided upon a policy if it should be a % of FCF, fixed dividend or share re-purchase or combination”, ”(to articulate a dividend policy) is definitely part of the workstream for the coming months for Management which then will be submitted to the Board” .

I'm therefore slightly more postive than you and hope for some sort of plan in Sept. However, the breakdown at Kraken is new for E and so was the low Oilprice from Apil until now. However, AB is in my view like a machine and would like to keep his word as far as possible

I decided to look at the information provided by E upon the topic "dividend" and this is whre we are. Latest info at the top. My take is that a policy will be submited to Board after summer and we shareholder returns will start in 2024.

5/6

Annual meeting approved the Authority for the Board to purchase of of own shares

24/5

At 31 March 2023, the Group’s net debt position was c.$678 million, a decrease of c.$39 million since 31 December 2022 but increase since end feb. EnQuest remains focused on deleveraging the balance sheet and optimising its capital structure.

19/4

At end February 2023, the Group’s net debt position was c.$624 million. EnQuest remains focused on deleveraging the balance sheet and optimising its capital structure with the intention to provide shareholder returns in 2024 (slide 16 in PP). Target being 0.5x net debt to mid-cycle EBITDA. Quotes from Audio cast” Shareholder returns very much within the Managements thinking after further delevering”, ”Anticipate shareholder returns for 2024 and onwards”, ”Dividend a decision for the Board and they have not yet decided upon a policy if it should be a % of FCF, fixed divdend or share re-purchase or combination”, ”defenitely part of the workstream for the coming months for Management to articulate a policy to be submitted to the Board”

12/4

We have reduced our debt by 60% in five years. Our leverage is now just 0.7x. - We will continue to use cashflow to reduce debt and will soon reach our 0.5x leverage target

May and November 2022

EPL (Tax increase for Enq and limitation in Borrowing capacity)

With the annual meeting coming up soon I note that we, the shareholders, will be requested to approve repurchase of shares. In these dark times I think that is the only light and the sole reason for me not to get the h... out of Enquest. So with a MC of MUSD 377 Enquest can repurchase 10% of outstanding shares for MUSD 37 and so on This is a potential that shall not be underestimated and if we can only keep the production on a decent level (here I rely on Enquest) and the oilprice back above 80 (here I rely on Goldman Sacks and Opec+) i think we should be fine at the end of the year. Lessons learned is that UK is a third world country when it comes to politics and they clearly do not understand even the basics or fundamentals of the business they are no killing. It is a disgrace.

Anyone.
Is there anything stopping Enquest from starting minor share buy-backs already now? The SP price is low so it could be good value for money for E shareholders if Management could start already now. According to my understanding there is nothing stopping Management in the financial agreements (I think this was the response from IR some time ago but please correct me if I am wrong). It could also be that there needs to be a shareholder decision or similar before E could start. If anyone has better info please enlighten me. At the moment it seems like Management is stuck with a plan that Net debt/Ebitda must go down to 0,5 before any shareholder returns can be considered (2024). However, IMHO a more flexibel approach would be much better for the shareholders.

For once I hope for a positive outcome from the Operatioanl Update. Why?
* Net Debt at the end of sept was MUSD 750 now 135 says later I expect something like USD 550
* Production in H1 was 49726 Boepd now we have OGA numbers pointing at 52k in Dec and perhaps more in Jan/Feb
* Hedging was costly during H1 it did cost us USD 14. My expectation is that E has done better since then
* Enquest had a choice to pay EPL at 25% in 2022 or 35% in 2023, I assume they went for 255 and moved investments to 2023.
* Low turnover in Sweden for some time. My take on that is that nobody would like to sell. We (LTHs) are all waiting!!
On the negative side we have the Oilprice and the EPL. In H1 it was 89,9 it will be lower now and we also have the EPL. However, I think the market is fully aware of this information and it has already costed us a lot if you look at the SP. In sept we had 3,83 SEK/share today we have 2,75 SEK/share (almost a 30% hit).
Taking everything together I expect a positive reaction on SP following the OU and then at the time of reporting the Full Years result (mid March) I expect confirmation on Net dbt/EBITDA at 0,5 and information about dividend/share repurchase. When this happens I think we (LTH) will see new shareholders being attracted by E.

Thanks, so were can I follow the price for this type of oil? Is it Brent or is it something else. At Oilprice.com they have all sorts of oil with different daily prices.

Could someone inform me what type of oil E is producing? I would like to know if it makes any sense to follow the Brent Oil price or if there is another type of oil we are producing and in such case where to follow it. I recall our Kraken oil was some sort of heavy oil that was beneficial for ships.

Two comments:
1. I fully agree with Mrc. The statements from Starmer will come back and bite him. Everey time he repeats the 9x lie the bigger the fall. It will be apparent that he does not know what he talks about. Don't underestimate common sense!
2. Net debt at year end. Up until sept 30 the net debt fell with MUSD 52,4/m (From 1222 to 750), I therefore think the Net debt will be below MUSD 600 at the end of 2022. Perhaps as low as MUSD 550. Why? When the EPL was increased to 35% AB was given a choice to to pay 25% EPL (during 2022) or wait and pay 35% EPL during 2023. I think they focused on increasing the debt repayments as much as possible for 2022.