Enquest PLC (GB:ENQ)
LSE:ENQ
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Enquest
(LSE:ENQ)
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Rating:56Neutral
Price Target:
18.00 p
▲(2.51% Upside)
Action:ReiteratedDate:03/26/26
Overall score reflects a mixed financial base: solid but recently weakening cash generation alongside volatile profitability and a leveraged balance sheet. Technicals are moderately supportive on a medium-term basis but show neutral-to-soft near-term momentum. Valuation is held back by negative earnings despite a modest dividend, while earnings-call guidance and deleveraging progress provide a partial offset.
Positive Factors
Cash generation resilience
EnQuest has consistently generated positive operating and free cash flow across recent years, which underpins debt servicing, supports ongoing capex and decommissioning obligations, and provides financial flexibility. While FCF has been contracting, the persistent cash generation remains a durable strength versus peers with weaker coverage.
Negative Factors
Elevated leverage
Despite recent deleveraging, the company still carries meaningful gross indebtedness and a high debt/equity ratio versus pre-crisis norms. Elevated leverage raises refinancing and covenant risk during commodity or operational downturns and constrains strategic optionality if earnings or cash flow weaken further.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation resilience
EnQuest has consistently generated positive operating and free cash flow across recent years, which underpins debt servicing, supports ongoing capex and decommissioning obligations, and provides financial flexibility. While FCF has been contracting, the persistent cash generation remains a durable strength versus peers with weaker coverage.
Read all positive factors
Enquest (ENQ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£329.57M
Dividend Yield4.36%
Average Volume (3M)3.65M
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth-18.05%
EPS Growth-634.88%
CountryUK
Employees732
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.07
Shares Outstanding1,870,029,500
10 Day Avg. Volume3,695,162
30 Day Avg. Volume3,648,658
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.24
Price to Sales (P/S)0.38
P/FCF Ratio3.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£20.00Price Target Upside13.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.02
Revenue Forecast (FY)£991.02M
Enquest Business Overview & Revenue Model
Company Description
EnQuest PLC operates as an oil and gas production and development company. The company explores for, extracts, and produces hydrocarbons in the United Kingdom, North Sea, and Malaysia. It primarily holds interests in the Magnus, Kraken, Scolty/Cra...
How the Company Makes Money
EnQuest makes money primarily by producing and selling crude oil, natural gas, and associated liquids from its operated and non-operated upstream assets. Revenue is generated from its working-interest share of production volumes multiplied by real...
Enquest Earnings Call Summary
Earnings Call Date:Sep 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 03, 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 | 136.55M | 393.33M | 540.67M | 652.92M | 358.18M |
| EBITDA | 448.96M | 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
Neutral
17.56
Price Trends
15.38
Positive
13.13
Positive
12.72
Positive
Market Momentum
1.07
Positive
49.62
Neutral
31.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENQ, the sentiment is Neutral. The current price of 17.56 is below the 20-day moving average (MA) of 18.63, above the 50-day MA of 15.38, and above the 200-day MA of 12.72, indicating a neutral trend. The MACD of 1.07 indicates Positive momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 31.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | £111.80M | -10.05 | 1.89% | 6.46% | -9.43% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | £185.12M | -8.32 | 0.66% | ― | -32.66% | 72.67% | |
56 Neutral | £329.57M | -0.47 | -24.56% | 4.36% | -18.05% | -634.88% | |
51 Neutral | £137.72M | -109.79 | -1.81% | ― | -100.00% | -84.62% | |
44 Neutral | £153.36M | -24.27 | -11.54% | ― | -0.20% | -25.68% | |
44 Neutral | £205.30M | -4.39 | -92.03% | ― | -16.87% | 21.18% |
* Energy Sector Average
GB:ENQ
Enquest
17.68
4.94
38.78%
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55.70
-16.20
-22.53%
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265.00
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3.11%
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9.47
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-86.61%
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GB:KIST
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97.60%
Enquest Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
EnQuest boosts output, strengthens balance sheet as it accelerates South East Asia growth
Positive
Mar 25, 2026
EnQuest reported another year of strong operational delivery in 2025, with production rising 5.4% to 42,945 Boepd, asset uptime near 90% and unit operating costs edging lower despite weaker oil prices and a softer US dollar. The company expanded r...
Regulatory Filings and Compliance
EnQuest Corrects Total Voting Rights After Treasury Share Transfer
Neutral
Feb 24, 2026
EnQuest PLC has corrected an error in a previous disclosure on its total voting rights, clarifying the composition of its issued share capital and treasury holdings. The company confirmed that, following the transfer of 5,000,000 ordinary shares f...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
EnQuest lifts output, strengthens Magnus stake and targets Southeast Asia growth
Positive
Feb 23, 2026
EnQuest reported a strong operational performance for 2025, with production of 45,606 barrels of oil equivalent per day, above guidance, and operating, capital and decommissioning costs all coming in below forecasts despite currency headwinds. The...
Business Operations and Strategy
EnQuest Secures Partner Role in Cendramas PSC in Peninsular Malaysia
Positive
Feb 11, 2026
EnQuest has been awarded a Letter of Award as a partner in the Cendramas Production Sharing Contract in Peninsular Malaysia, alongside Medco Asia Pacific and DIALOG Resources, by Malaysia’s state oil company PETRONAS through Malaysia Petrole...
Business Operations and Strategy
EnQuest Wins Four-Year Extension to Vietnam Block 12W Contract
Positive
Feb 9, 2026
EnQuest has secured a four-year extension to its Block 12W Production Sharing Contract in Vietnam from PetroVietnam, taking the term to July 2034 on existing conditions and covering the Chim Sáo and Dua fields plus three gas discoveries and a...
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.