EnQuest Memo 240321
- Understand production curves and lifetime production potential from EnQuest’s key producing assets – Kraken, Magnus and PM8 / Seligi
- Understand what magnitude of shocks to the Brent forward curve, and to production curves for its key assets, EnQuest can withstand without its PIK-Toggle Senior Unsecured Notes (SUNs) becoming impaired
- Estimated lifetime production curves for Kraken, Magnus, PM8 / Seligi and Golden Eagle
- Financial projections, DCF valuation and sensitivities (to Brent forward curve and production)
- What magnitude of shocks to the Brent forward curve, and to production curves for its key assets, can EnQuest withstand without its SUNs becoming impaired?
- How much FCF does EnQuest generate in our base case by FY 23E (by when its SUNs and credit facilities, including expected new RBL, will have fallen due)?
- What opportunities does EnQuest have to optimise production from its assets?
- What are EnQuest’s shares worth?
- How should the Magnus vendor loan and FCF sharing agreement with BP be treated in valuing EnQuest?
- What are EnQuest’s prospects for refinancing its existing credit facility, Sculptor Capital facility and Magnus vendor loan into a new RBL that would also provide the debt financing for its planned acquisition of Golden Eagle?