EnQuest (LSE:ENQ) - Share price, News & Analysis

ENQ fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	2/6
Financial Health	1/6
Dividends	0/6

ENQ Stock Overview

EnQuest PLC operates as an oil and gas production and development company.

Rewards

Trading at 62.1% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 21.5% per year for the next 3 years

Interest payments are not well covered by earnings

Volatile share price over the past 3 months

Large one-off items impacting financial results

+ 1 more risk

EnQuest Competitors

Energean

LSE:ENOG

UK£2.4b

Serica Energy

AIM:SQZ

UK£903.5m

Pantheon Resources

AIM:PANR

UK£798.5m

Tullow Oil

LSE:TLW

UK£769.3m

Price History & Performance

Summary of all time highs, changes and price drops for EnQuest
Historical stock prices
Current Share Price	UK£0.35
52 Week High	UK£0.37
52 Week Low	UK£0.17
Beta	2.17
1 Month Change	-2.75%
3 Month Change	69.54%
1 Year Change	110.17%
3 Year Change	75.70%
5 Year Change	-6.97%
Change since IPO	-65.91%

Recent News & Updates

Apr 28

Here's Why EnQuest (LON:ENQ) Has A Meaningful Debt Burden

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	ENQ	GB Oil and Gas	GB Market
7D	7.3%	1.1%	-0.4%
1Y	110.2%	19.5%	-4.0%

Return vs Industry: ENQ exceeded the UK Oil and Gas industry which returned 19.5% over the past year.

Return vs Market: ENQ exceeded the UK Market which returned -3.9% over the past year.

Price Volatility

Is ENQ's price volatile compared to industry and market?
ENQ volatility
ENQ Average Weekly Movement	8.7%
Oil and Gas Industry Average Movement	9.9%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.5%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: ENQ is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ENQ's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2010	789	Amjad Bseisu	https://www.enquest.com

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/Crathes, Greater Kittiwake Area, Alba, Dons area, and Alma/Galia.

EnQuest Fundamentals Summary

How do EnQuest's earnings and revenue compare to its market cap?
ENQ fundamental statistics
Market Cap	US$813.70m
Earnings (TTM)	US$376.99m
Revenue (TTM)	US$1.27b

2.2x

P/E Ratio

0.6x

P/S Ratio

Is ENQ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENQ income statement (TTM)
Revenue	US$1.27b
Cost of Revenue	US$907.63m
Gross Profit	US$358.18m
Other Expenses	-US$18.81m
Earnings	US$376.99m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 06, 2022

Earnings per share (EPS)	0.20
Gross Margin	28.30%
Net Profit Margin	29.78%
Debt/Equity Ratio	284.8%

How did ENQ perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ENQ (£0.35) is trading below our estimate of fair value (£0.93)

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 (2.2x) compared to the UK Oil and Gas industry average (10.1x).

PE vs Market: ENQ is good value based on its PE Ratio (2.2x) compared to the UK market (15.3x).

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 overvalued based on its PB Ratio (1.6x) compared to the GB Oil and Gas industry average (1x).

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-21.5%

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 (-21.5% per year).

Earnings vs Market: ENQ's earnings are forecast to decline over the next 3 years (-21.5% 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 (-5.7% per year).

High Growth Revenue: ENQ's revenue is forecast to decline over the next 3 years (-5.7% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ENQ's Return on Equity is forecast to be high in 3 years time (26%)

Past Performance

How has EnQuest performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-31.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ENQ has a large one-off gain of $121.4M impacting its December 31 2021 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 -31.2% 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 (344.7%).

Return on Equity

High ROE: Whilst ENQ's Return on Equity (72.39%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is EnQuest's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ENQ's short term assets ($658.6M) do not cover its short term liabilities ($991.7M).

Long Term Liabilities: ENQ's short term assets ($658.6M) do not cover its long term liabilities ($2.9B).

Debt to Equity History and Analysis

Debt Level: ENQ's net debt to equity ratio (229.8%) is considered high.

Reducing Debt: ENQ's debt to equity ratio has increased from 234.5% to 284.8% over the past 5 years.

Debt Coverage: ENQ's debt is well covered by operating cash flow (45.5%).

Interest Coverage: ENQ's interest payments on its debt are not well covered by EBIT (2.6x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.57%

Forecast Dividend Yield

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 recent payouts.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ENQ has not reported any payouts.

Discover strong dividend paying companies

Management

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

5.0yrs

Average management tenure

CEO

Amjad Bseisu (57 yo)

12.25yrs

Tenure

US$1,920,056

Compensation

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

CEO Compensation Analysis

Compensation vs Market: Amjad's total compensation ($USD1.92M) is above average for companies of similar size in the UK market ($USD1.38M).

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

Leadership Team

Experienced Management: ENQ's management team is seasoned and experienced (5 years average tenure).

Board Members

Experienced Board: ENQ's board of directors are considered experienced (3.8 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 12%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31