Enquest Plc · LSE:ENQ
Enquest — Enquest Plc Ord — FY2023 Earnings Presentation
23 slides from Enquest's earnings presentation, Mar 28, 2024
Slide 1: EnQuest 2023 Full Year Results
Page EnQuest 2023 Full Year Results
Slide 2: Introduction
28 March 2024 Page 2 EnQuest Full Year Results 2023 Introduction Amjad Bseisu Chief Executive Officer
Slide 3: EnQuest at a glance
28 March 2024 Page 3 EnQuest Full Year Results 2023 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 Ar
Slide 4: Strong free cash flow driving debt reduction; providing platform for growth
28 March 2024 Page 4 EnQuest Full Year Results 2023 Strong free cash flow driving debt reduction; providing platform for growth Production at 43,812 Boepd - in line with mid-point of guidance Successful execution of well programme at Magnus; Kraken production efficiently reinstated Record year of we
Slide 5: Top quartile operator Transformational growth
28 March 2024 Page 5 EnQuest Full Year Results 2023 Top quartile operator Transformational growth SAFE results 0.52 LTIF1 (UK average 1.31) Deliver organic Infill drilling in core portfolio; growth Convert 2C resources at Bressay & Bentley High uptime Group production efficiency 87% Asset life Trans
Slide 6: EnQuest roadmap to net zero
28 March 2024 Page 6 EnQuest Full Year Results 2023 EnQuest roadmap to net zero Committed to reach net zero scope 1 and scope 2 emissions by 2040 MT CO2e • EnQuest has reduced its UK emissions by 41% since 2018 10 mtpa CCS project • Significantly ahead of North Sea Transition Deal milestones • 10% r
Slide 7: Finance
28 March 2024 Page 7 EnQuest Full Year Results 2023 Finance Jonathan Copus Chief Financial Officer
Slide 8: Financial priorities - focused on deleveraging
28 March 2024 Page 8 EnQuest Full Year Results 2023 Financial priorities - focused on deleveraging 2024 Financial Priorities 2023 onwards 1 Reset capital structure ✓ 2 Continue to de-lever ✓ 3 Cost discipline and optimising capital programme ✓ 4 Shareholder returns post significant deleveraging ✓ 5
Slide 9: Income Statement
28 March 2024 Page 9 EnQuest Full Year Results 2023 Income Statement 2023 2022 Delta Revenue $1,487 million Brent (av.$/bbl) 82.5 100.8 -18.2% - Realised hedging losses $11.3 million (2022: $203.7 million loss) UK gas (av.GBp/Therm) 98.9 203.5 -51.4% Production (Boepd) 43,812 47,259 -7.3% Cost of sa
Slide 10: Lower debt with extended maturities
28 March 2024 Page 10 EnQuest Full Year Results 2023 Lower debt with extended maturities EnQuest net debt ($ million) Debt maturities extended and aligned in 2027 EnQuest net debt: 2.5 1.4 2.3 1.6 0.7 0.6 0.5 - RBL amortisation completed by April 2027 Adjusted EBITDA Target - Term loan facility bull
Slide 11: Cash flow and Balance Sheet
28 March 2024 Page 11 EnQuest Full Year Results 2023 Cash flow and Balance Sheet 2023 movement in net debt $m EnQuest cash flows FCF $300 million Net cash flows from ops $754 million EnQuest free cash flow $300 million 717 754 $481 million net debt at 31 December 2023 Gross debt $795 million 15 481
Slide 12: Capital priorities
28 March 2024 Page 12 EnQuest Full Year Results 2023 Capital priorities 2024 2025 Guidance Outlook Organic 41.0 - 45.0 Production Reflects focused drilling and maintenance programmes production kboed growth FPSO lease Operating Expenditure c.$415m Maintain strong focus on costs in an inflationary en
Slide 13: Operations
28 March 2024 Page 13 EnQuest Full Year Results 2023 Operations Steve Bowyer North Sea General Manager and Head of Business Development
Slide 14: Kraken – Top quartile development & operating capability
28 March 2024 Page 14 EnQuest Full Year Results 2023 Kraken – Top quartile development & operating capability DEVELOPMENT OPERATOR CAPABILITY 2023 PERFORMANCE - Complex development executed below budget and on schedule - Efficient reinstatement of production after topside HSP transformer failures -
Slide 15: Magnus – Transforming & extending the life of mature assets
28 March 2024 Page 15 EnQuest Full Year Results 2023 Magnus – Transforming & extending the life of mature assets TRANSFORMATIVE LIFE EXTENSION 2023 – FOCUSED INVESTMENT DRIVING UPTIME Magnus field life extended 10+ years under EnQuest – unlocking over - Significantly improved uptime of 88% (2022: 66
Slide 16: Malaysia - Replicating our business model internationally
28 March 2024 Page 16 EnQuest Full Year Results 2023 Malaysia - Replicating our business model internationally TRANSFORMATIVE LIFE EXTENSION 2023 – DRIVING HIGH UPTIME; COST-EFFICIENT WELL PROGRAMME PM8/Seligi field life extended by 10+ years under EnQuest – PSC was - Production efficiency increased
Slide 17: Market-leading decommissioning capability
28 March 2024 Page 17 EnQuest Full Year Results 2023 Market-leading decommissioning capability SECTOR-LEADING PLATFORM WELL P&A PERFORMANCE Capability & track record to provide top-quartile decom operator services 2023 – DELIVERED CONSISTENT TOP QUARTILE PERFORMANCE • Record-breaking NNS P&A program
Slide 18: SVT – right-sizing to enable future new energies
28 March 2024 Page 18 EnQuest Full Year Results 2023 SVT – right-sizing to enable future new energies 2023 - Awarded four licences in NSTA’s first UK CCS Licence Round Strategic approach to critical infrastructure (Magnus, Thistle, Tern and Eider fields) Right-size Sullom Voe Terminal facilities: •
Slide 19: Conclusion
28 March 2024 Page 19 EnQuest Full Year Results 2023 Conclusion Amjad Bseisu Chief Executive Officer
Slide 20: Differentiated operator Transformational growth
28 March 2024 Page 20 EnQuest Full Year Results 2023 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 Financi
Slide 21: EnQuest Full Year Results 2023 Q&A
28 March 2024 Page 21 EnQuest Full Year Results 2023 Q&A
Slide 22: Disclaimer
28 March 2024 Page 22 EnQuest Full Year Results 2023 Disclaimer This presentation may contain forward-looking statements, including in relation to the financial condition of EnQuest PLC (the "Group") and the results of operations and businesses of the Group. Forward-looking statements are sometimes,
Slide 23: Thank you
CnQuest Thank you