Market Reaction: Slightly Negative. The transaction would reduce EnQuest's Capex layout exposure by US$135 mm in 2016, thereby easing the balance sheet, a key area of concern for some investors. However, this comes at a cost. The transaction read-through is not great for Kraken's value and pending details on any contingent payments, and the transaction would reduce our ReNAV for EnQuest from 58p per share to 50p per share. We note that this would still represent c. 64% upside to the curr
18 Jul 2016
POTENTIAL FARM OUT OF 20% OF KRAKEN TO DELEK
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POTENTIAL FARM OUT OF 20% OF KRAKEN TO DELEK
EnQuest PLC (ENQ:LON) | 15.7 -0.1 (-3.0%) | Mkt Cap: 300.2m
- Published:
18 Jul 2016 -
Author:
Stephane Foucaud -
Pages:
2
Market Reaction: Slightly Negative. The transaction would reduce EnQuest's Capex layout exposure by US$135 mm in 2016, thereby easing the balance sheet, a key area of concern for some investors. However, this comes at a cost. The transaction read-through is not great for Kraken's value and pending details on any contingent payments, and the transaction would reduce our ReNAV for EnQuest from 58p per share to 50p per share. We note that this would still represent c. 64% upside to the curr