EnQuest (LSE:ENQ) delivered strong operational results in 2025, reporting production of 45,606 barrels of oil equivalent per day, ahead of guidance. Operating, capital and decommissioning costs all came in below expectations despite foreign exchange headwinds. The company also strengthened its Southeast Asian footprint through the acquisition of Harbour Energy’s Vietnam business, achieved early first gas at the Seligi 1b project in Malaysia, and entered new markets in Brunei and Indonesia, while receiving industry recognition in both Malaysia and the UK.
On the financial side, EnQuest finished the year with net debt of approximately $435 million and total liquidity of about $675 million following the refinancing of its reserve-based lending facility, positioning the group for further strategic activity. The company also reached a $60 million settlement securing full future cash flows from its core Magnus field, simplifying its financial structure and supporting a planned six-well drilling campaign. Management added that lower expected cash tax payments in 2026 should help strengthen cash generation.
For 2026, EnQuest has issued production guidance of 41,000 to 45,000 barrels of oil equivalent per day, reflecting temporary disruptions caused by severe North Sea weather and a third-party outage affecting the Magnus field earlier in the year. Investment priorities include short-cycle drilling in the UK, continued cost and emissions optimisation, and expansion projects across Southeast Asia. These include ramping up Seligi gas production, phased development of the DEWA gas fields in Malaysia, and a four-year extension of Vietnam’s Block 12W licence, supported by an expanded oil price hedging programme.
The company’s outlook reflects ongoing financial pressures linked to declining revenues and relatively high leverage, partially offset by strong operational performance and cash flow generation. Technical indicators suggest some bearish momentum, while recent corporate developments and operational progress provide elements of support. Valuation sentiment remains cautious given profitability challenges.
More about EnQuest
EnQuest PLC is an independent oil and gas production and development company focused on mature assets in the UK North Sea and Southeast Asia. The company specialises in extending field life and maximising asset value through operational efficiency, targeted drilling and enhanced recovery techniques, with a growing regional presence in Malaysia, Vietnam, Brunei and Indonesia.
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