EnQuest (ENQ) H1 2026 earnings summary

Executive summary

• Achieved 9% year-on-year production growth in H1 2026 to 41,544 Boepd, with Southeast Asia contributing 41% of output, up from 22% last year.

• Announced transformational Malaysia acquisition, expected to more than double production to over 100,000 Boepd and increase 2P reserves by 85%.

• Maintained top quartile production efficiency at 89% (excluding third-party impacts), and achieved zero lost time injuries.

• Settled Magnus Contingent Consideration, eliminating a $433 million liability and expanding RBL capacity by 38%.

• Enhanced balance sheet simplicity and liquidity, supporting further acquisitive growth.

Financial highlights

• Reported H1 2026 revenue of $530 million; cash revenue (excluding non-cash hedging) at $609 million, up 18% year-on-year.

• Adjusted EBITDA rose 13% year-on-year to $273 million; free cash flow was $71 million.

• Operating cash flow increased 31% year-on-year to $281 million; capex was $78 million; net debt at period end was $517 million.

• Paid an increased/final dividend of $20 million in June 2026.

• Statutory net loss narrowed to $39.9 million from $173.5 million; adjusted net loss reduced to $9.0 million.

Outlook and guidance

• 2026 production guidance narrowed to 41,000–43,000 bbl/day, reflecting North Sea downtime and strong Seligi performance.

• Full-year asset expenditure expected at $670 million, with $450 million opex, $160 million capex, and $60 million abandonment.

• Malaysia acquisition expected to sustain group production above 100,000 bbl/day through decade end.

• Focus on fast payback, high-return projects and further organic and acquisitive growth.

• Hedged 2.2 MMbbls for Sep–Dec 2026 and 3.6 MMbbls for 2027 at average prices of $64–$73/bbl.