EnQuest – Upbeat conference call
Yesterday’s conference call was actually relatively upbeat, and it does seem they are confident around resolving the FPSO issues at Kraken and might be on the conservative side with their updated FY production guidance. Adjusting our model for slightly faster ramp up than we had assumed post the operational update, but higher opex, leaves our RENAV broadly unchanged at 22p. Given the oil price gearing, and large debt position, we remain with our HOLD recommendation. Assuming Kraken doesn’t have more issues, and the oil price holds up, EnQuest can actually deleverage quite quickly. However, at this point, we see more upside in our other E&Ps under coverage.Enquest is an oil and gas production and development company. As of Dec 31 2016, Co.'s principal U.K. assets were its interests in the producing operated oil fields Heather/Broom, Thistle/Deveron, the Dons area, the Greater Kittiwake Area, Alma/Galia and Scolty/Crathes. In addition, Co. had interests in the Kraken development and also a non-operated interest in the producing Alba oil field. In Malaysia, Co.'s operated assets comprise the PM8/Seligi Production Sharing Contract and the Tanjong Baram Risk Services Contract. At Dec 31 2016, Co. had proven and probable reserves of 215.0 million barrels of oil equivalent.
Whitman Howard is an independent institutional stockbroking and investment banking business focused on servicing the needs of our corporate clients and institutional investor base.
The company began trading in 2011 with a team of highly experienced market professionals and the goal of building a leading capital markets business in an entrepreneurial environment.
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