LSE:ENQ

Stock Analysis Report

Executive Summary

EnQuest PLC operates as an oil and gas development and production company, explores for, extracts, and produces hydrocarbons in the United Kingdom, North Sea, and Malaysia.


Snowflake Analysis

Undervalued with questionable track record.


Similar Companies

Share Price & News

How has EnQuest's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.4%

ENQ

15.3%

GB Oil and Gas

5.9%

GB Market


1 Year Return

-60.2%

ENQ

-42.8%

GB Oil and Gas

-22.7%

GB Market

Return vs Industry: ENQ underperformed the UK Oil and Gas industry which returned -37.5% over the past year.

Return vs Market: ENQ underperformed the UK Market which returned -18.8% over the past year.


Shareholder returns

ENQIndustryMarket
7 Day-8.4%15.3%5.9%
30 Day-65.7%-33.7%-23.1%
90 Day-64.3%-42.4%-28.1%
1 Year-60.2%-60.2%-39.9%-42.8%-18.6%-22.7%
3 Year-78.9%-82.0%-21.8%-31.7%-13.4%-24.7%
5 Year-75.2%-78.8%-4.1%-24.0%1.3%-22.0%

Price Volatility Vs. Market

How volatile is EnQuest's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EnQuest undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENQ (£0.08) is trading below our estimate of fair value (£1)

Significantly Below Fair Value: ENQ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ENQ is good value based on its PE Ratio (1.1x) compared to the Oil and Gas industry average (3.3x).

PE vs Market: ENQ is good value based on its PE Ratio (1.1x) compared to the UK market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: ENQ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ENQ is good value based on its PB Ratio (0.1x) compared to the GB Oil and Gas industry average (0.4x).


Next Steps

Future Growth

How is EnQuest forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENQ's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: ENQ's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: ENQ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ENQ's revenue is expected to decline over the next 3 years (-12.4% per year).

High Growth Revenue: ENQ's revenue is forecast to decline over the next 3 years (-12.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENQ's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has EnQuest performed over the past 5 years?

34.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENQ has a large one-off loss of $169.9M impacting its June 30 2019 financial results.

Growing Profit Margin: ENQ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ENQ has become profitable over the past 5 years, growing earnings by 34.4% per year.

Accelerating Growth: ENQ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ENQ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (38.2%).


Return on Equity

High ROE: ENQ's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is EnQuest's financial position?


Financial Position Analysis

Short Term Liabilities: ENQ's short term assets ($617.6M) do not cover its short term liabilities ($909.8M).

Long Term Liabilities: ENQ's short term assets ($617.6M) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: ENQ's debt to equity ratio (172.4%) is considered high.

Reducing Debt: ENQ's debt to equity ratio has increased from 61% to 172.4% over the past 5 years.


Balance Sheet

Inventory Level: ENQ has a high level of physical assets or inventory.

Debt Coverage by Assets: ENQ's debt is not covered by short term assets (assets are 0.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ENQ is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: ENQ is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is EnQuest's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ENQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ENQ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ENQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ENQ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ENQ's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Amjad Bseisu (55yo)

10.08s

Tenure

US$1,352,000

Compensation

Mr. Amjad Bseisu formed EnQuest PLC and has been its Chief Executive Officer since 2010. Mr. Bseisu served as the Chief Executive Officer of Petrofac Energy Developments International Limited. He served as ...


CEO Compensation Analysis

Compensation vs Market: Amjad's total compensation ($USD1.68M) is above average for companies of similar size in the UK market ($USD741.40K).

Compensation vs Earnings: Amjad's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Amjad Bseisu
CEO & Executive Director10.08yrsUS$1.35m0.010% $12.7k
Jonathan Swinney
CFO & Executive Director10yrsUS$974.00k0.018% $22.0k
Ian Wood
Head of Communications & Investor Relationsno datano datano data
Stefan Ricketts
General Counsel & Company Secretaryno datano data0.019% $22.7k
Faysal Hamza
Managing Director of Corporate Development3.83yrsno datano data
Bob Davenport
Managing Director of North Sea3.67yrsno datano data
John Penrose
Managing Director of Malaysiano datano datano data
Andy Duncanson
Head of Major Projects & Kraken Area Manager2yrsno datano data
Andy Lane
Head of Engineeringno datano datano data
Nadira Hussein
Interim Assistant Company Secretaryno datano datano data

3.8yrs

Average Tenure

55yo

Average Age

Experienced Management: ENQ's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amjad Bseisu
CEO & Executive Director10.08yrsUS$1.35m0.010% $12.7k
Jonathan Swinney
CFO & Executive Director10yrsUS$974.00k0.018% $22.0k
Martin Houston
Chairman0.42yrno data0.031% $37.8k
Helmut Langanger
Senior Independent Non-Executive Director10yrsUS$70.00k0.043% $53.0k
Howard Paver
Senior Independent Director0.83yrno datano data
John Winterman
Non-Executive Director2.5yrsUS$50.00k0.0018% $2.2k
Philip Holland
Non-Executive Director4.58yrsUS$60.00kno data
Carl Hughes
Non-Executive Director3.17yrsUS$60.00k0.0018% $2.2k
Laurie Fitch
Non-Executive Director2.17yrsUS$50.00k0.0043% $5.3k

3.2yrs

Average Tenure

63yo

Average Age

Experienced Board: ENQ's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.1%.


Top Shareholders

Company Information

EnQuest PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EnQuest PLC
  • Ticker: ENQ
  • Exchange: LSE
  • Founded: 2010
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£122.832m
  • Shares outstanding: 1.62b
  • Website: https://www.enquest.com

Number of Employees


Location

  • EnQuest PLC
  • Cunard House
  • 5th Floor
  • London
  • Greater London
  • SW1Y 4LR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENQLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 2010
ENQOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKApr 2010
3EQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2010
ENQU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2010
ENQSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKApr 2010
ENQLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 2010

Biography

EnQuest PLC operates as an oil and gas development and production company, explores for, extracts, and produces hydrocarbons in the United Kingdom, North Sea, and Malaysia. The company operates through two segments, North Sea and Malaysia. It primarily holds interests in the Thistle/Deveron, Heather/Broom, the Dons area, Magnus, the Greater Kittiwake Area, Scolty/Crathes, Alma/Galia, and Kraken. The company also has an interest in the non-operated Alba producing oil field, as well as the PM8/Seligi production sharing contract and the Tanjong Baram risk services contract in Malaysia. In addition, it holds 16 production licenses and 8 production hubs. As of December 31, 2018, the company had proved and probable reserves of 198 million barrels of oil equivalents. Further, it is involved in the construction, ownership, and operation of an oil pipeline; marketing and trading of crude oil; and leasing activities. EnQuest PLC was founded in 2010 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 22:20
End of Day Share Price2020/03/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.