We reiterate our Speculative Buy recommendation on EnQuest with a target price of £1.00 per share following another good set of results. The producing assets are outperforming expectations, offsetting minor delays at Alma Galia. As for Ithaca Energy, costs are going down faster than anticipated, allowing the firm to do more with less. With increased production, Opex at GKA has now dropped to US$40/bbl from US$100/bbl initially. However, until first oil at Kraken in 2017, given the very
20 Aug 2015
Strong Performance but High Leverage is an Issue
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Strong Performance but High Leverage is an Issue
EnQuest PLC (ENQ:LON) | 15.8 0 (-0.3%) | Mkt Cap: 301.9m
- Published:
20 Aug 2015 -
Author:
Stephane Foucaud -
Pages:
4
We reiterate our Speculative Buy recommendation on EnQuest with a target price of £1.00 per share following another good set of results. The producing assets are outperforming expectations, offsetting minor delays at Alma Galia. As for Ithaca Energy, costs are going down faster than anticipated, allowing the firm to do more with less. With increased production, Opex at GKA has now dropped to US$40/bbl from US$100/bbl initially. However, until first oil at Kraken in 2017, given the very