Sectors > Top Reports > EnQuest Memo 240321

EnQuest Memo 240321

EnQuest. Forecasting Production. What Brent Forward & Production Shocks Would Be Needed To Impair SUNs?
PUBLISHED: 24 March 2021
PAGES: 71
PRODUCT CODE: ENQLN0001
SUBMARKET: EnQuest, Top Reports, Top Reports,

£1,970.00

Why Read?

  • 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 

What’s New?

  • Estimated lifetime production curves for Kraken, Magnus, PM8 / Seligi and Golden Eagle 
  • Financial projections, DCF valuation and sensitivities (to Brent forward curve and production)

Questions Answered

  • 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?

  1. View, Variant Perception & Recommendations

  2. Business Overview & Analysis

  3. Historic Financials

  4. Financial Projections, Valuation & Sensitivities

EnQuest


 


 

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