EnQuest (LSE:ENQ) delivered another year of solid operational performance in 2025, increasing production by 5.4% to 42,945 barrels of oil equivalent per day. Asset uptime remained close to 90%, while unit operating costs edged lower despite the impact of weaker oil prices and a softer US dollar.
The company made significant progress in South East Asia, integrating its acquisition in Vietnam and bringing the Seligi 1b gas development in Malaysia online nine months ahead of schedule. EnQuest also expanded its regional footprint by securing new licences in Brunei and Indonesia, while maintaining UK production broadly in line with 2024 levels.
On the financial side, EnQuest refinanced its $800 million reserve-based lending facility and ended the year with $678.6 million in cash and available facilities. The group also settled the remaining contingent consideration related to the Magnus Field for $60 million, eliminating a significant liability and improving future cash flow visibility.
Although revenue and adjusted EBITDA declined due to lower Brent crude prices and the impact of the UK windfall tax, the company remained profitable and simplified its balance sheet. Reflecting the improved financial position, EnQuest proposed an increased final dividend for 2025.
Looking ahead, the company expects production in 2026 to range between 41,000 and 45,000 barrels of oil equivalent per day as it continues to develop assets in both the UK North Sea and South East Asia.
While the company’s outlook remains influenced by declining revenues and relatively high leverage, strong cash generation and operational efficiency provide some support. Technical indicators currently point to bearish market momentum, though recent strategic developments and operational performance offer potential positives for longer-term prospects.
More about EnQuest
EnQuest PLC is an oil and gas exploration and production company focused on operations in the UK North Sea and South East Asia. The group operates approximately 97% of its asset portfolio and holds key positions in the Magnus field in the UK as well as gas assets in Malaysia and Vietnam. EnQuest is also expanding its regional presence through new opportunities in Brunei and Indonesia as it works to build a more diversified production base.
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