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Enquest PLC (GB:ENQ)
LSE:ENQ
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Enquest (ENQ) AI Stock Analysis

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GB:ENQ

Enquest

(LSE:ENQ)

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Neutral 68 (OpenAI - Gpt-5.6Sol)
Rating:68Neutral
Price Target:
30.00 p
▲(21.95% Upside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by a mixed financial base (strong cash generation but weaker recent earnings and elevated leverage). Technicals are supportive with clear uptrend signals, valuation is compelling on low P/E plus dividend yield, and the latest earnings call added optimism via improved operating performance, refinancing, and the Malaysia acquisition—partly tempered by tighter production guidance and operational/fiscal risks.
Positive Factors
Strong cash generation
Consistently positive operating and free cash flow provides internally generated funding for debt service, maintenance and selected growth. The latest 31% operating-cash-flow increase and $71 million free cash flow indicate that cash conversion remains a meaningful support for resilience.
Negative Factors
Elevated leverage
Debt of roughly £1.0–1.2 billion and debt-to-equity near 1.8x leave the company exposed if earnings weaken. Although refinancing extends maturities and improves liquidity, leverage can constrain capital allocation and amplify sensitivity to weaker operating cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently positive operating and free cash flow provides internally generated funding for debt service, maintenance and selected growth. The latest 31% operating-cash-flow increase and $71 million free cash flow indicate that cash conversion remains a meaningful support for resilience.
Read all positive factors

Enquest (ENQ) vs. iShares MSCI United Kingdom ETF (EWC)

Enquest Business Overview & Revenue Model

Company Description
EnQuest PLC is an independent energy company specializing in the exploration, development, and production of hydrocarbons. Its operations are geographically diverse, covering the United Kingdom, the North Sea, and Malaysia. The company holds key i...
How the Company Makes Money
EnQuest primarily makes money by producing and selling crude oil, condensate, and natural gas from its operated and non-operated upstream assets. Revenue is largely driven by (1) hydrocarbon sales volumes (production levels and working-interest en...

Enquest Earnings Call Summary

Earnings Call Date:Sep 03, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Apr 01, 2027
Earnings Call Sentiment Positive
The call was strongly positive, led by 9% first-half production growth, higher cash revenue and EBITDA, a 31% increase in operating cash flow, balance sheet simplification, strong liquidity and the pending completion of a transformational Malaysia acquisition. Management also highlighted substantial reserve, resource, low-cost production and recovery-factor opportunities. The main negatives were Magnus infrastructure disruption, a $60 million cash impact, higher diesel costs, narrowed 2026 production guidance and continuing UK fiscal constraints and NAV discount. Highlights significantly outweighed the lowlights.
Positive Updates
Strong Operating Capability and Safety Focus
Safety remains EnQuest's first priority. The company operates 97% of its 2P reserves, with approximately 90% production efficiency despite many assets being more than 40 years old. First-half production efficiency was 89% excluding third-party impacts and 83% including the unplanned Ninian South Central infrastructure impact, compared with a 76% sector average for 2025.
Negative Updates
Magnus Production Disruption
Third-party infrastructure disruption reduced Magnus production by more than 4,000 barrels per day during the first half of 2026. A cargo was deferred out of the first half, creating an approximately $60 million cash impact and reducing first-half cash flow figures by the same amount.
Read all updates
Q2-2026 Updates
Negative
Strong Operating Capability and Safety Focus
Safety remains EnQuest's first priority. The company operates 97% of its 2P reserves, with approximately 90% production efficiency despite many assets being more than 40 years old. First-half production efficiency was 89% excluding third-party impacts and 83% including the unplanned Ninian South Central infrastructure impact, compared with a 76% sector average for 2025.
Read all positive updates
Company Guidance
For 2026, EnQuest narrowed expected production to 41,000 to 43,000 barrels a day, the lower half of its original 41,000 to 45,000, with cost guidance at $670 million; Seligi production is 4,500 barrels a day following a 50% increase. Offshore execution of the NCP bypass is expected to commence in the fourth quarter of 2026, with first oil for the export solution delivered by next half of the year, while Kraken Phase 1 is expected to add approximately 5 million barrels of recoverable reserves and Phase 2 is currently estimated to add from 30 million to 40 million barrels gross, with delivery challenged into early 2027. Following the Malaysia acquisition, enlarged group production is expected to remain above 100,000 barrels a day through to the end of the decade, with production from the new interest carrying a unit operating cost around $10 a barrel, new 2P volumes requiring a very low CapEx of about $170 million, less than $2 a barrel, and overall group OpEx at $16 a barrel; based on trailing 2025 numbers, revenues are expected to reach around $1.8 billion, with more than $900 million of EBITDA and net debt-to-EBITDA of 1.1x.

Enquest Financial Statement Overview

Summary
Mixed fundamentals: cash flow has been consistently positive with historically solid operating profitability, but revenues have been declining and 2025 net income fell to near break-even. The balance sheet remains leveraged, which increases risk if earnings weaken.
Income Statement
54
Neutral
Balance Sheet
44
Neutral
Cash Flow
63
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.18B1.09B1.18B1.49B1.85B1.27B
Gross Profit207.84M280.76M393.33M540.67M652.92M358.18M
EBITDA499.00M902.92M568.27M745.12M978.68M647.88M
Net Income136.75M1.59M93.77M-30.83M-41.23M376.99M
Balance Sheet
Total Assets3.54B3.60B3.56B3.77B4.02B4.37B
Cash, Cash Equivalents and Short-Term Investments227.28M328.46M226.32M313.57M301.61M286.66M
Total Debt1.09B1.08B1.00B1.20B1.48B2.05B
Total Liabilities3.07B3.07B3.02B3.31B3.54B3.84B
Stockholders Equity471.22M528.25M542.47M456.73M484.24M520.76M
Cash Flow
Free Cash Flow168.05M98.00M254.78M612.50M823.88M630.43M
Operating Cash Flow334.27M276.70M508.77M754.24M931.55M674.14M
Investing Cash Flow-274.18M-203.71M-183.57M-262.69M-161.25M-321.23M
Financing Cash Flow-178.57M-98.00M-352.89M-478.63M-731.16M-285.47M

Enquest Technical Analysis

Technical Analysis Sentiment
Positive
Last Price24.60
Price Trends
50DMA
25.24
Positive
100DMA
23.21
Positive
200DMA
18.75
Positive
Market Momentum
MACD
0.53
Positive
RSI
53.99
Neutral
STOCH
57.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENQ, the sentiment is Positive. The current price of 24.6 is below the 20-day moving average (MA) of 26.22, below the 50-day MA of 25.24, and above the 200-day MA of 18.75, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 57.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ENQ.

Enquest Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
£123.76M-24.33-2.30%4.47%-18.06%-127.50%
70
Outperform
£271.50M19.245.30%66.67%-11.74%
68
Neutral
£490.39M4.9127.37%3.01%3.33%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
56
Neutral
£153.09M-7.84-7.79%10.50%-38.72%52.39%
50
Neutral
£168.10M-11.97-4.94%69.79%
49
Neutral
£249.35M13.8449.35%70.01%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ENQ
Enquest
26.60
15.73
144.64%
GB:GENL
Genel Energy
56.90
-6.60
-10.39%
GB:CNE
Capricorn Energy PLC
381.00
173.50
83.61%
GB:PANR
Pantheon Resources
11.80
-13.25
-52.89%
GB:PHAR
Pharos Energy
29.80
9.46
46.48%
GB:KIST
Kistos PLC
310.00
142.50
85.07%

Enquest Corporate Events

Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
EnQuest Sets Up Transformational Malaysian Expansion as H1 Output and Cash Flow Rise
Positive
Sep 3, 2026
EnQuest reported that the first half of 2026 marked a turning point as it advanced transformational growth plans, notably through acquiring interests in four Malaysian production sharing contracts. The deal, set to complete at year-end with an eff...
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
EnQuest Clears Key Hurdles for Malaysian PSC Acquisitions and Main-Market Readmission
Positive
Aug 12, 2026
EnQuest PLC, an independent energy producer listed in London, focuses on operating mature and underinvested oil and gas assets in the UK North Sea and South East Asia. Its strategy centres on safely extending the lives of existing fields and extra...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsShareholder Meetings
EnQuest Wins Shareholder Backing for US$833m Malaysian Asset Deal
Positive
Aug 11, 2026
EnQuest PLC shareholders have overwhelmingly approved a resolution at a general meeting to acquire participating interests in four offshore production sharing contracts in Malaysia from PETRONAS CARIGALI SDN. BHD. for a maximum consideration of US...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
EnQuest Sets Shareholder Vote on $833 Million Malaysian Asset Deal
Positive
Jul 24, 2026
EnQuest has published a combined prospectus and shareholder circular for its proposed acquisition of participating interests in four Malaysian production sharing contracts from Petronas Carigali, for up to $833 million. The documents, approved by ...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
EnQuest Advances Reverse-Takeover Malaysian Asset Deal
Positive
Jul 10, 2026
EnQuest PLC has secured key regulatory consents to proceed with a significant Malaysian acquisition, confirming that existing PSC partners have waived pre-emption rights on one of the licence packages. The company is set to acquire operated intere...
Executive/Board Changes
EnQuest Awards Long-Term Share Options to Top Executives
Neutral
Jul 1, 2026
EnQuest has granted performance share plan awards in the form of nil-cost options over ordinary shares to its top executives as part of its 2026 long-term incentive programme. Chief executive Amjad Bseisu received an award over 4,305,663 shares, w...
Business Operations and StrategyRegulatory Filings and Compliance
EnQuest Discloses $172.5 Million in 2025 Payments to Governments
Neutral
Jun 19, 2026
EnQuest has published its 2025 report on payments to governments, detailing how much it paid in taxes, production entitlements, royalties and other levies across its operations in the UK, Malaysia, Vietnam and Indonesia. The disclosure, made under...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 15, 2026