EnQuest (ENQ) H2 2025 earnings summary

Executive summary

• Achieved 18% increase in 2P2C reserves year-over-year, with 78% of 163 million barrels in 1P proven category and 97% operatorship of 2P reserves.

• Achieved 5.4% year-over-year increase in group production, exceeding guidance despite a major outage at Magnus.

• Expanded into Vietnam, Brunei, and Indonesia, with significant production and resource additions, and delivered first gas in Malaysia's Seligi 1b project ahead of schedule.

• Declared and paid a maiden dividend of $15 million in June 2025, with an increase to $20 million for 2026.

• Recognized for operational excellence, winning multiple industry awards and achieving sector-leading safety and emissions reductions, including a 45% reduction from 2018 baseline.

Financial highlights

• 2025 revenue was $1.1 billion, with 5% production growth offsetting a 15% decline in Brent prices; realized oil price averaged $68.8/bbl.

• Adjusted EBITDA reached $504 million; unit OpEx fell 2% to $25/bbl; operating costs remained flat despite a 10% USD weakening.

• Net profit, excluding a one-off non-cash tax charge, was $126 million; reported a $239 million gain from Magnus settlement; net profit after tax charge was $2 million.

• Operating cash flow was $498 million; CapEx investment totaled $179 million, including $57 million for decommissioning; free cash flow was $9 million.

• Net debt at year-end was $434 million; cash and undrawn facilities totaled $679 million.

Outlook and guidance

• 2026 production guidance: 41,000–45,000 BOE/day, including impact from Magnus outage and ongoing drilling.

• Operating expenditure guidance: $450 million, with $30 million FX buffer; CapEx guidance: $160 million, focused on drilling and NCP bypass; decommissioning cost guidance: $60 million.

• Dividend increased to $20 million for 2026, supported by a sustainable capital allocation framework.

• Southeast Asia production expected to nearly double to 35,000 BOE/day by 2030, shifting portfolio mix toward gas.

• Focus on organic growth, asset optimization, and decarbonization projects.