Adding GE based on 200-250m debt actually improves Enquest overall debt repayment profile. GE will be paid in less then one year after completing, Guess old Enq would have a 2 year debt free horizon. That’s bizarre thinking about how good this deal is.
Hello Jan, Doubt anyone waiting for results. Over the last half year Enq transformed into a more and more safe bet. A yearly FCF projection vs 6 months ago have improved around 300m based on oil and another 300m based on GE. Guess now it starts to be possible with some probability calculate it home based on 60 oil over 3 years. There still so much upside in side given these oil prices. That’s my thoughts
KO, that’s good outcome. I also managed increase holding lite but always very scared trade out. And also build some more with cash. Think this will fire in all cylinders in next months if oil stays here. Prospect, broker update, Moodys. GE.
Citi raises its price expectations for hydrogen oil for the remainder of 2021. The bank now predicts that the average price of hydrogen will be $ 77 and $ 78 per barrel in the third and fourth quarters, respectively. That is an increase of 4 and 9 dollars per barrel from the previous forecast, reports Bloomberg News. FinWire
Updated: 21 June 2021, 09:46 Published: June 21, 2021, 09:28 In the analysis, the bank also states that it is highly likely that Brent oil will reach up to $ 85 per barrel during the period before it falls back on a market balance.
Most people don’t care if it’s green or black. Just it goes up. Most people also don’t care about valuations. Just it goes up. AMC entertainment now have close to 40k Swedish shareholders at Avanza only. Enquest have 7500. Can AB give something better then free popcorn?
Chilting, Brent doesn’t need continue rise. Even 50-60 oil will make a lot money.
I was looking at EV/EBITDA valuations and seems US they talk about 6-10 multiple and I saw some other page with multiple 3. But Enquest trending towards 1.5. That’s crazy.
About production, think Enq should flatten growth ambitions. Do some drilling and buy something small if opportunity is there like GE. GE deal is exceptional, it will add close to 1m/day FCF. Enq will finish net debt end year around 1b that almost 300m debt reduction + adding GE. With these high FCF Enquest can easy mitigate production one way or other.
I hope and don’t think they will go for something big 1-2b investment. Then share it with others.
Enquest could now hedge and secure 700m FCF 2022. I would put priorities 1. Reduce debt 2. Drill 3. Dividend