XEL robbed me so glad AB has played a blinder and picked it up 100% for 2 days FCF with small uplift if it goes into production. Enquest now have all the oil it could possibly handle for the next 50 years. If EP is up to it, seems a no brainer put it back to work. I am sure we can do it a lot cheaper than XEL's grandiose plans. I am staying in for the ride.
From memory Bentley was run by the wrong people, a good engineer but a partner that new how to spend money, spent more on an EWT than hopefully we will getting it into production, EP may be the piece Exite needed. One thing is for sure they have masses of Data from the best EWT ever done.
If we arrange $750m RCF it is only the amount we draw that will be debt, with GE already repaying its purchase price and the higher oil price paying down the $1.3b we owed at 31st Dec how much of that $750m is to be drawn down is the question? that will be added to the Bonds to be new debt outstanding with GE purchase going through July time we may not go over $1.5b but will we buy more assets or drill to increase production? interesting times.
https://www.death-clock.org/ These online calculator's are rubbish ( I hope I only have 3 year 362days left) I have never been in hospital or ill but I drink every day and am overweight and am just 68 I would buy an annuity but they recon I have to be 102 just to get my money back!
Hi romaron You are probably right NDA makes them very carful, but I have not been sure on the present restrictions as it stands if RCF is repaid do PIK end. It may well be that new RCF may require PIK arrangement to continue but that would likely mean a restriction on dividends being paid. It didn't sound like those type of restrictions on the new credit facility were being considered so it may well be that PIK will end with new loan by default. Steady as you go seems to be the message good Hedges, make extra payments early while they seal the refinance deal it must be impressing the bankers with $60+ oil if we could get 5% rate as it will count above the Bonds at 7% I will be happy.
Just listened to presentation, looks like they are being cautious and have hedged 5mb and are very exited about Enquests transformation this year and GE deal and I agree with them, if as I expect this leads to a competitive RCF to purchase and clear up bitty debt arrangements record. We may be clear of the payday loan expensive deals. I was surprised FD could not answer the question on will a new RCF end the PIK arrangement on the Bonds, something I have been wondering about. Am exited about future but annoyed I pressed the buy button at 21p premature again! will get it right one day?
RE: Next interest could be in cash06 Mar 2021 21:27
Afraid I don't get your logic if you are going to sell the Bonds because of the risk why do you own shares in Enquest as well? and the market is not a knowing entity it gives a price that reflects demand. I accept there is always risk but at the time the Bonds were issued at £1 with a 5% yield my judgment is it was higher then, than it is now. The Market gave you that risk then for a 5% yield at the moment as you say you are looking at a 20% yield now. We all make our own decisions and It is not my place to judge yours just interested in your logic for all I know it may be right. For me when they trade for 102p I will probably sell as would rather then have a fund for a 5% return
We are obviously negotiating terms for refinance RCF & Purchase of GE, at the moment we cant pay any Dividends because of covenants, we were also expected to put up $50m through Equity for purchase of GE but since start of these negotiations the landscape of oil has been transformed perhaps that $50m Equity raise may be offset by a covenant to not pay dividend for x period. It is beginning to look like Enquest will be awash with FCF to buy GE and repay outstanding RCF as things stand within 12-14 months
RE: Next interest could be in cash05 Mar 2021 12:12
Fair enough 90p could be next week then. I think price has been held back more by not giving holders the temptation to sell and buy into Equity not much temptation of switching from Equity into Bonds at moment. I was tempted a while back to go all out Equity, but have a good chunk of Equity and sitting on my hands with the Bonds is almost guaranteed to come good now, remember the Equity will always lose out in preference to the Bonds.
Who would invest in oil when you can build environmentally friendly Nuclear power stations and drive electric cars at least if it goes wrong we wont know about it for long. Lets have a referendum on Nuclear power it is our future they are risking?
hitman1a I should remind your Green friend he will never get renewable power technologies off the ground unless oil price rises, it must be cost effective to be taken up. we will see, now Trump has gone a return to higher oil prices with added higher Taxes to price in the other technologies.
smalltrader Interactive Investor Sipp, £10 month with 1 free trade credit per month £7.99 trades very clear easy to use site with trades that I have found are usually better than quotes. Worth looking into before you decide.
Sipp10 As a Bond and share holder your point 4 is a complete red herring they will be redeemed for cash. At the point when it was possible Enquest may have struggled to refinance the Bonds were the safest to hold, as PMO shareholders found out Equity comes behind the Bonds when in trouble, But Equity in Enquest now looks very safe and Bonds even safer both are a bargain!
Hi PYUECK always good to chew thing over before panic selling. The reason to hold Bonds is they are safer than Equity, if they are not able to repay the Bonds in full on the due date then the Equity will be worthless, a deal is usually sorted out in preference to going bust, that is why PMO shareholders put up 60% of the assets into new company but only get 5% share of it. Bond holders did much better not sure of all the details don't hold PMO, but the general principal will be should your worries about Enquest come about, Bondholders will control the assets, Equity will lose everything, and the MD owns 11% of that Equity so is very determined to make sure that doesn't happen. Oil is looking bright and as I said by the time we see 90p the risk of default will be seen as so low I don't see point of panic selling then, it is not impossible that these will trade at a premium towards the end with interest rates at .25% and these paying 7% We all make our own decisions I am just glad someone panicked and sold them to me at 35p but the risk was a lot higher then.
We had the Solar Industry ripping off green grant schemes charging people £18k for 4kw systems now you can get 4kw system fully installed for £4k why don't government insist on value for money with their grant schemes. Now is the time to get house roofs covered in solar panels at sensible prices. But insist on value! Heat pumps even more rip off at moment you can buy component's retail with 20% VAT for £6k but installers only charge 5% VAT but it will come out at £10k if your lucky that's net of VAT £4700 labour and if we hang it out it will take two people 2 days work.