With Brent at $87 negotiations for Bond refinance must be close, hedging at these prices must take away most of the risk for the banks so am confident it will be done in time to extend the $600m loan by 5 years. Am expecting to have the problem of were to put £70k of retail bond money soon. 7% income will be the problem Enquest will not pay that much on refinance.
Hi hamp
I agree the repayment schedule shows clearly our limits of credit and we are already well within them, of course that limit is raised again to $600m on the refinance of the Bonds and extended for 5 years so highlight what the immediate priority is. We look to go into Jan at $435m drawn so already have $165m of fire power for reducing Bonds so is looking good for early summer refinance I would be happy with repayment of Retail and refinance of the rest and increased capex for 2022/23 use EP ourselves.
After much deliberation and countless fag packets, I would like to put in a definitive 53.1p my address at that point will be questionable as I may be on world cruise, but if untraceable please donate to a homeless charity for day traders.
Hi L3 and a HNY
Glad to hear you still have an interest in Enquest, I agree with sentiment on Heather /Thistle /Dons with hindsight but the low oil price and high costs on those fields could have bankrupted us and AB moved just in time with the low price to pick up GE,I doubt he would have been able to do GE if they had bad year with Thistle etc?
Your figure's for that mean we need to make $17.33 on the 2P reserves to break even, costs with capex about $20 so should just about be repaid in 2022 if oil stays were it is, time will tell? we hopefully have had some of the 2C oil proved up into 2P with the new wells drilled as well.
The Magnus field has been frustrating, but with the bonus of gas contract for importing and selling on at profit helping 2021 figure's somewhat? Kraken area has huge potential with the addition of two proximity field's and this is where I expect to hear the game plan soon, probably for 2023 though. Would still like to hear a test well for next year on the Tiger prospect near Magnus. March results could contain plenty of updates of interest, Bonds refinance? Prosperous NY to you.
Sorry I also meant to say the last paragraph accounts for why Enquest will be receiving 100% till about end of 1st quarter as they repaid all of outstanding BP loan early but it is recoverable from Magnus revenue before the profit share.
HNY Sipp 10 and all.
From the prospectus the following clause shows that the BP profit share has a cap that allows for our ability to not pay tax. I too would like to know what is left but it is not a debt and all capex is recoverable before the calculation of their share is made.
"Waterfall mechanics and profit share
On completion of the Magnus Call Option Deed, BPEOC and EnQuest Heather will enter into a net cash
flow deed which sets out how revenue from the 75 per cent. Interests will be shared between them (the
“Net Cashflow Share Deed”). The Net Cashflow Share Deed will be effective from the date of signing
(on completion under the Magnus Call Option Deed) and will automatically terminate on the earlier of:
(a) the date on which the aggregate amount received by BPEOC under the profit share arrangements
equals $600,000,000/(1-TR), where TR is the rate of Corporation Tax in force on date of completion
under the Magnus Call Option Deed (not to exceed 40 per cent.) (the “Profit Share Cap”);
(b) the date of completion under the RSPA (see paragraph 18.3(b)(iii) of this Part 11); and
(c) the actual date of permanent cessation of production from the Magnus field (the “Magnus COP
Date”).
The net cashflow amount for the 75 per cent. Interests is calculated quarterly by deducting any costs paid
by EnQuest Heather in respect of the 75 per cent. Interests from all income received by EnQuest Heather
in respect of the 75 per cent. Interests. If this results in a figure greater than $0, such amount constitutes a
“Net Cashflow Gain”.
Each Net Cashflow Gain is applied as follows:
(a) first, to pay BPCO any outstanding amount of principal, interest (including incremental interest),
costs or other amounts, then outstanding and due under the Loan Agreement to which BPCO is
entitled to be paid pursuant to STWD (the “Loan Repayment Amount”) (but excluding
incremental interest);"
Oil
If a man tells me my wife is ugly, I know he has been looking at her with intentions and I suspect he has an even uglier wife . That is why he is looking?
I wouldn't mind giving HBR some attention but my hands are full ogling Enquest.
Fair enough but over zealous use of negatives that do not reflect Enquests position when you have no intention on a position in holding stock come across as having a motive.
Good to hear you are an HBR holder interested in comparing against Enquest, I am sure HBR will do well I like Tolmount perfect time for that to come onstream. In short term Enquest have been stabilised by AB and Cobus purchase, week holders have been shaken out, and my opinion is we await year end figures to see the new balance sheet after right backs and GE integration before market can rate them correctly. I would say HBR have market cap 10 x ENQ but not sure it has 10 x potential.
It's your use of words to describe a disappointing update, Guidance missed by 1700bpd is not Massif, a declaration they expect debt to be approx the same as 2020 is what most expected, and to know that is after BP entitlement being added to debt on balance sheet and purchase of GE and Bently is not a bad year, with interest payments being reduced as well, Magnus at the moment is main issue but it also has some good news in that $110m from gas is included in our $950 in 10 months revenue, we will have 10 weeks of GE to be added to the other 10 weeks of this year.
But I have a feeling you know all this but its not your purpose for posting on the BB If you don't hold but wish to get in lower best of luck if its to just wind up long term holders P-off
£325m SP of Enquest AB has the firepower to keep mopping up at these levels and he doesn't sell into any up days. Most who are unsure of Enquest have sold on way down if there are more they will be mopped up. At some point Enquest will be able to buy back all the shares from cash balances at this rate.
If oil price drops renewable alternatives will be unviable, so oil will have go up, and OPEC will see what gas shortage has done to price's and act accordingly. Boring but I can wait, a lockdown means I turn heating up and shop online with all the lorries running around burning oil.
Hi hitman1a
A good time to reassess GE's value to Enquest, my thinking is more on the P2 resources it holds when purchased they were declared at 19mb if we have produced 4mb in 2021 we have 15mb left expected costs were with capex to be $20 so at $70 we have $750m to make going forward at 40% tax we should have $300m of credits to use up. We also acquired 4mb of 2c hopefully some of that will have been converted into 2p with the new wells drilled. It could turn out to be a cash cow. And still the SP falls!
Hi Pelle
FCF from GE came in at $75m after tax and higher costs for bringing new wells online in first 9mnths so with the Tax and lower capex for rest of year and 100% of Magnus since settling the $60m to BP am confident they will make update claim of net debt coming in at about $1280m for 2021 this will be after purchase of GE $325m + $30m costs, and putting $60m to BP on balance sheet and of course raising $50m , so we can say a $365m equivalent debt to asset movement.
I agree we should make a huge difference in FCF / Debt reduction in H1 2022 the ducks are lined up!
The two cargo lifts mentioned in update were confirmed to me by IR to be for GE but they couldn't say size or price for those cargo's but reiterated they expect to bring debt in around the 2020 level. I will be looking to our net asset value in accounts after right backs.
I jumped in too early with my top up but good luck to all able to take advantage of a bargain.