Enquest Plc · LSE:ENQ
Enquest — Investor Presentation (September 2024)
26 slides from Enquest's investor presentation, September 2024
Slide 1: Company Presentation
Page Company Presentation September 2024
Slide 2: Disclaimer
Page Disclaimer THIS PRESENTATION IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. THIS PRESENTATION IS NOT AN OFFER OR INVI
Slide 3: Table of Contents
Page Table of Contents 1. Update on EnQuest 2. Key Company Highlights 3. Financial Overview 4. Conclusion
Slide 4: Executive summary
23 September 2024 Page 1 EnQuest Executive summary • Incorporated in 2010, EnQuest PLC (“ENQ” or the “Company”) is an independent energy company • The Company is leveraging its differentiated operational capabilities to responsibly optimise production across its portfolio, deliver sector-leading dec
Slide 5: Update on EnQuest
©nQuest Update on EnQuest
Slide 6: EnQuest at a glance
23 September 2024 Page 2 EnQuest EnQuest at a glance UK North Sea Malaysia Upstream Magnus Undeveloped offshore licence Midstream Producing asset Decommissioning Dons Thistle/Deveron PM8/Seligi Heather/Broom 4 UK production hubs PM409 Kuala Kraken, Magnus, The Greater Kittiwake Area and Golden Eagle
Slide 7: Strong liquidity provides platform for growth
23 September 2024 Page 3 EnQuest Strong liquidity provides platform for growth Net production to 30 June 2024 of 42,771 boepd - Top quartile production efficiency of 93%1 On track to complete 25 well P&As for full year 2024 – matching EnQuest NNS record $15 million share buyback programme progressin
Slide 8: Growth strategy remains robust in a fiscally volatile environment
23 September 2024 Page 4 EnQuest Growth strategy remains robust in a fiscally volatile environment • EnQuest strategy remains robust: • Grow scale ✓ Top quartile capability and cost discipline • Deliver value • Critical to value delivery • Reduce emissions 1 ✓ Tax asset value is enhanced • Deliver t
Slide 9: Key Company Highlights
©nQuest Key Company Highlights
Slide 10: Key company highlights
23 September 2024 Page 5 EnQuest Key company highlights 1 • Robust cash flow generation facilitating continued deleveraging, with Net debt / Adjusted EBITDA of 0.4x Strong balance sheet secured through currently below LT target levels consistent deleveraging • Prudent capital allocation designed to
Slide 11: Strong balance sheet secured through consistent deleveraging
23 September 2024 Page 6 EnQuest Strong balance sheet secured through consistent deleveraging Net debt reduced EnQuest net debt ($ million) - Gross debt of $658 million and cash and cash equivalents of $337 million as of H1 2024 EnQuest net debt/ 0.4 2.5 1.4 2.3 1.6 0.7 0.6 - Current leverage of 0.4
Slide 12: Top quartile capabilities across operations, production and decommissioning
23 September 2024 Page 7 EnQuest Top quartile capabilities across operations, production and decommissioning Track Record in Asset Life Extension Market Leading Decommissioning Performance4, Validated by Peers - Strong operating cost management - On track to P&A 60% of our suspended wells within 5 y
Slide 13: Well-positioned to deliver transformative, value-accretive growth
23 September 2024 Page 8 EnQuest Well-positioned to deliver transformative, value-accretive growth c. $510m Magnus $100m Net cash flow to < 12 months Cash consideration1 EnQuest to end of Payback 2023 c. $316m Golden $250m Net cash flow to c.14 months Eagle Cash consideration2 EnQuest to end of 2023
Slide 14: Prudent long-term positioning to support the energy transition
23 September 2024 Page 9 EnQuest Prudent long-term positioning to support the energy transition SVT – right-sizing to enable future new energies Two major projects in flight: 2023 - Awarded four licences in NSTA’s first UK CCS Licence Round (Magnus, Thistle, Tern and Eider fields) • New Stabilisatio
Slide 15: Financial Overview
©nQuest Financial Overview
Slide 16: Financial priorities - focused on deleveraging
23 September 2024 Page 10 EnQuest Financial priorities - focused on deleveraging H2 2024 Financial Priorities 2023 YTD 2024 onwards 1 Reset capital structure ✓ ✓ 2 Continue to de-lever ✓ ✓ 3 Cost discipline and optimising capital programme ✓ ✓ 4 Shareholder returns post significant deleveraging ✓ ✓
Slide 17: H1 2024 Income Statement
23 September 2024 Page 11 EnQuest H1 2024 Income Statement H1 2024 H1 2023 Delta Revenue $586 million Brent (av.$/bbl) 83.4 75.8 10.0% - Oil revenue $523 million – flat on H1 2023 UK gas (av.GBp/Therm) 73 108 -32.6% - Gas revenues $73 million – lower on price and 3rd party volumes Production (Boepd)
Slide 18: H1 2024 Cash flow and Balance Sheet
23 September 2024 Page 12 EnQuest H1 2024 Cash flow and Balance Sheet H1 2024 movement in net debt ($m) Net cash flow from operations $324 million FCF $55 million Investing activities - Cash capex $95 million (includes Magnus five-yearly rig 481 324 recertification, Golden Eagle and Malaysia well ca
Slide 19: Update on Current Trading
23 September 2024 Page 13 EnQuest Update on Current Trading Based on preliminary management estimates, EnQuest’s performance through August 31, 2024 is in line with expectations. As of August 31, 2024, EnQuest’s net debt was $334.1 million, an increase of approximately $13.1 million from June 30, 20
Slide 20: Conclusion
©nQuest Conclusion
Slide 21: Differentiated operator Transformational growth
23 September 2024 Page 14 EnQuest Differentiated operator Transformational growth SAFE results Top quartile performance Maximise value from existing assets High production uptime Leverage UK tax asset to deliver material FCF Drilling expertise International diversification Financial discipline Reduc
Slide 22: EnQuest
23 September 2024 Page 15 EnQuest EnQuest An energy transition company - increasing energy production whilst reducing carbon intensity 1 Top quartile operating performance validated by regulators and peers 2 Evolved from deleveraging to maximising transactable liquidity to deliver transformative gro
Slide 23: Appendix
©nQuest Appendix
Slide 24: Maximising cash flow generation through operational excellence and capital discipline
23 September 2024 Page 16 EnQuest Maximising cash flow generation through operational excellence and capital discipline Maximising value from existing assets Magnus Kraken GEAD PM8/Seligi - Optimise production from - 2025 drilling programme - Non-operated production - Low cost well programmes existi
Slide 25: Historical financials – key items
23 September 2024 Page 17 EnQuest Historical financials – key items $mm 2021 2022 2023 H1-24 Realized Oil Price1 ($/bbl) 68.6 88.9 81.4 83.4 Net Production (Kboepd) 44.4 47.3 43.8 42.8 Business Performance Revenue2 1,320 1,839 1,459 588 Opex ($/boe) 20.5 22.7 21.9 22.8 Adj. EBITDA 743 979 825 368 Ca
Slide 26: Historical financials – key items (cont’d)
23 September 2024 Page 18 EnQuest Historical financials – key items (cont’d) $mm 2021 2022 2023 H1-24 Total Cash Balance1 287 302 314 337 Total Debt 1,509 1,019 794 658 Net Debt 1,222 717 481 321 Net Debt / Adj. EBITDA (x) 1.6x 0.7x 0.6x 0.4x Net Debt / 2P Reserves ($/boe)2 6.0 3.8 2.7 1.83 1 Includ