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Enquest
(LSE:ENQ)
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Rating:54Neutral
Price Target:
24.00 p
▲(35.44% Upside)
Action:Reiterated
Date:06/12/26
The score is held back primarily by mixed financial performance (shrinking revenues, sharply weaker 2025 bottom-line results, and a leveraged balance sheet). Technicals are a positive with a strong uptrend, but momentum is nearing overbought levels. Valuation is a key risk due to the extremely high P/E, only partly offset by the dividend yield.
Positive Factors
Cash generation
Consistent operating cash flow and historically positive free cash flow provide durable ability to service debt, fund maintenance and selective development capex, and sustain distributions. This cash-generation base supports financial flexibility over the next 2–6 months even if margins ebb.
Negative Factors
Revenue decline
Multi-year revenue decline shrinks scale and increases reliance on higher commodity prices to restore earnings. Lower top-line volumes/revenues reduce operating leverage, constrain margin recovery, and make medium-term cashflow planning and growth investments more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow and historically positive free cash flow provide durable ability to service debt, fund maintenance and selective development capex, and sustain distributions. This cash-generation base supports financial flexibility over the next 2–6 months even if margins ebb.
Read all positive factors
Enquest (ENQ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£434.56M
Dividend Yield4.36%
Average Volume (3M)3.65M
Price to Earnings (P/E)234.6
Beta (1Y)0.47
Revenue Growth-13.35%
EPS Growth-104.39%
CountryUK
Employees732
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)<0.01
Shares Outstanding1,865,029,500
10 Day Avg. Volume3,695,162
30 Day Avg. Volume3,648,658
Financial Highlights & Ratios
PEG Ratio-1.69
Price to Book (P/B)0.50
Price to Sales (P/S)0.24
P/FCF Ratio2.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£30.00Price Target Upside69.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.05
Revenue Forecast (FY)£1.24B
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 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 08, 2026
Earnings Call Sentiment Neutral
EnQuest demonstrated strong operational capabilities and financial discipline with significant growth in Southeast Asia and successful deleveraging. However, the company faced challenges in the UK due to fiscal uncertainties and a reduction in commodity prices.Positive Updates
Strong Operational Performance
EnQuest's operational performance was exceptional, with a production efficiency of 89%, which would have been 94% excluding a third-party infrastructure outage. The company achieved 96% of its 2P reserves under its operatorship.
Negative Updates
Fiscal Challenges in the UK
The UK North Sea environment remains challenging due to evolving fiscal and regulatory pressures. The sector is losing 1,000 jobs every month, and there's a need for government reform.
Read all updates
Q2-2025 Updates
Positive
Negative
Strong Operational Performance
EnQuest's operational performance was exceptional, with a production efficiency of 89%, which would have been 94% excluding a third-party infrastructure outage. The company achieved 96% of its 2P reserves under its operatorship.
Read all positive updates
Company Guidance
In the call, EnQuest PLC provided comprehensive guidance on their operational and financial performance for the first half of 2025, highlighting several key metrics. The company reported a production efficiency of 89%, which would have been 94% excluding a third-party outage at Magnus, and an adjusted EBITDA of $235 million. EnQuest's net debt was reduced to $377 million from the previous year, while liquidity increased to $578 million, reflecting a positive redetermination of their reserve-based lending (RBL) capacity. The company reiterated its full-year guidance, targeting production of 40,000 to 45,000 barrels of oil equivalent per day (BOE/d), operating expenditure of $450 million, capital expenditure (CapEx) of $190 million, and decommissioning costs of $60 million. EnQuest emphasized their strategic focus on capital discipline, fast payback investments, and growth opportunities, particularly in Southeast Asia, where they aim to reach 35,000 BOE/d by the end of the decade. They also discussed the importance of their $3.3 billion U.K. tax asset in executing future transactions.Enquest Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
44
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.09B | 1.18B | 1.49B | 1.85B | 1.27B |
| Gross Profit | 280.76M | 393.33M | 540.67M | 652.92M | 358.18M |
| EBITDA | 902.92M | 568.27M | 745.12M | 978.68M | 647.88M |
| Net Income | 1.59M | 93.77M | -30.83M | -41.23M | 376.99M |
Balance Sheet | |||||
| Total Assets | 3.60B | 3.56B | 3.77B | 4.02B | 4.37B |
| Cash, Cash Equivalents and Short-Term Investments | 328.46M | 226.32M | 313.57M | 301.61M | 286.66M |
| Total Debt | 1.08B | 1.00B | 1.20B | 1.48B | 2.05B |
| Total Liabilities | 3.07B | 3.02B | 3.31B | 3.54B | 3.84B |
| Stockholders Equity | 528.25M | 542.47M | 456.73M | 484.24M | 520.76M |
Cash Flow | |||||
| Free Cash Flow | 98.00M | 254.78M | 612.50M | 823.88M | 630.43M |
| Operating Cash Flow | 276.70M | 508.77M | 754.24M | 931.55M | 674.14M |
| Investing Cash Flow | -203.71M | -183.57M | -262.69M | -161.25M | -321.23M |
| Financing Cash Flow | -98.00M | -352.89M | -478.63M | -731.16M | -285.47M |
Enquest Technical Analysis
Positive
17.72
Price Trends
21.19
Positive
19.46
Positive
15.14
Positive
Market Momentum
0.36
Positive
49.83
Neutral
59.81
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 17.72 is below the 20-day moving average (MA) of 23.42, below the 50-day MA of 21.19, and above the 200-day MA of 15.14, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 59.81 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £104.37M | -20.78 | 1.89% | 6.46% | -18.06% | -127.50% | |
71 Outperform | £241.01M | 17.12 | 5.30% | ― | -11.74% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
54 Neutral | £434.56M | 234.65 | 0.54% | 4.36% | -13.35% | -104.39% | |
50 Neutral | £155.84M | -23.34 | -11.54% | ― | -10.76% | 88.89% | |
50 Neutral | £202.50M | -41.24 | -1.85% | ― | ― | 64.58% | |
44 Neutral | £235.22M | -187.73 | -136.50% | ― | -4.86% | 95.89% |
* Energy Sector Average
GB:ENQ
Enquest
22.35
9.79
77.95%
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Enquest Corporate Events
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...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
EnQuest to Buy $833m Malaysian Assets in Reverse Takeover Boosting Output and Reserves
Positive
Jun 10, 2026
EnQuest has agreed to acquire participating interests in four offshore Malaysian production sharing contracts from Petronas Carigali and EP Malaysia Venture for up to $833 million, with $554 million due at completion expected by the end of 2026. T...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
EnQuest shareholders back all AGM resolutions, reinforcing board authority
Positive
May 22, 2026
EnQuest reported that all resolutions at its 22 May 2026 annual general meeting were approved by shareholders via poll, including acceptance of the 2025 annual report and accounts and the declaration of a dividend. Investors also backed the re-ele...
Business Operations and StrategyDividendsShareholder Meetings
EnQuest touts operational strength, Southeast Asia growth and higher dividend at AGM
Positive
May 22, 2026
EnQuest’s chief executive used the company’s AGM to underline its operational strength, highlighting 89% production efficiency in 2025 and the strategic benefit of operating 97% of its 2P reserves, most of which are proven. Management ...
Business Operations and StrategyExecutive/Board Changes
EnQuest Director Farina Khan Joins Board of Malaysia’s CelcomDigi
Positive
May 13, 2026
EnQuest PLC has announced a change in its boardroom profile, with non-executive director Farina Khan taking on an additional non-executive directorship at CelcomDigi Berhad, a company listed on Bursa Malaysia, effective 14 May 2026. The appointmen...
Business Operations and StrategyPrivate Placements and Financing
EnQuest refinances 2027 debt with $675 million senior notes issue
Positive
Apr 30, 2026
EnQuest has completed the settlement of a new $675 million issue of 9⅞% senior notes due 2031, priced at 99.038% and guaranteed by certain subsidiaries, with interest payable semi-annually. The transaction refinances higher-cost debt by rede...
Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and Financing
EnQuest to Redeem £133.3 Million Notes and Cancel Exchange Listing
Positive
Apr 29, 2026
EnQuest PLC has announced it will redeem in full its £133.3 million 9.00% guaranteed notes due 27 October 2027, exercising an optional call to repay the principal at 100% together with accrued interest up to, but excluding, 29 May 2026. The m...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
EnQuest Publishes 2025 Annual Report and Sets Date for 2026 AGM
Positive
Apr 23, 2026
EnQuest PLC has published its 2025 Annual Report and Accounts along with the notice of its 2026 Annual General Meeting, making both documents available to shareholders via its website and through the UK National Storage Mechanism. The AGM is sched...
Business Operations and StrategyPrivate Placements and Financing
EnQuest Prices $675 Million Bond to Refinance Debt and Boost Liquidity
Positive
Apr 22, 2026
EnQuest has priced a new $675 million offering of 9.875% senior notes due 2031 at 99.038%, with the notes to be senior obligations guaranteed by certain subsidiaries. The transaction is subject to customary closing conditions and forms part of the...
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.