EnQuest (ENQ) H1 2026 earnings summary

Executive summary

• Achieved 9% year-on-year production growth in H1 2026 to 41,544 Boepd, driven by acquisitions and operational enhancements, with Southeast Asia contributing 41% of output.

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

• Maintained strong operational performance with zero lost time injuries and a >40% reduction in UK Scope 1 & 2 emissions versus 2018 baseline.

• Settled Magnus Contingent Consideration for $60 million, eliminating a $433 million liability and expanding RBL capacity by 38%.

• Strategic focus on value-accretive, low-cost, fast payback projects and disciplined capital allocation.

Financial highlights

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

• Adjusted EBITDA rose 13% year-on-year to $273 million; adjusted free cash flow surged 118% to $71.3 million.

• Operating cash flow increased 31% year-on-year to $281 million; capex was $78 million.

• Net debt at period end was $517 million, with $206 million cash on hand and $759 million in liquidity.

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

Outlook and guidance

• 2026 production guidance narrowed to 41,000–43,000 bbl/day, reflecting infrastructure downtime offset by strong Seligi performance.

• Cost guidance set at $670 million for the year, with $450 million opex, $160 million capex, and $60 million abandonment.

• Malaysia acquisition expected to increase group production to over 100,000 bbl/day and maintain this level through decade end.

• Enlarged group EBITDA projected at over $900 million (2025 pro forma), with revenues around $1.8 billion.

• Focus on organic growth from Kraken EOR, Magnus LKCF, Seligi gas, and Vietnam prospectivity for 2027 and beyond.