EnQuest delivers above-guidance production, forecasts stability
By Josh White
Date: Monday 23 Feb 2026
(Sharecast News) - EnQuest said in an update on Monday that it delivered production above guidance in 2025 and strengthened its balance sheet through refinancing and a settlement related to the Magnus field, as it set out plans to maintain stable output in 2026 despite weather-related disruption in the UK North Sea.
Group production averaged 45,606 barrels of oil equivalent per day, including pro forma Vietnam volumes, exceeding the top end of its 40,000 to 45,000 boepd guidance range.
Underlying asset uptime was 89%, while pro forma expenditure came in around 4% below guidance despite a roughly 10% weakening of the US dollar.
Operating costs were expected to total about $435m, below guidance of $450m, with capital expenditure of around $180m and decommissioning costs of $55m, both under plan.
In the UK, 2025 production remained within 4% of 2024 levels.
Magnus output rose 8% to 15.3 Kboed despite a five-week third-party infrastructure outage, with North Sea production efficiency reaching 92% when excluding that disruption.
In South East Asia, EnQuest completed the acquisition of Harbour Energy's Vietnam business in July and undertook three proactive well investments at Block 12W, lifting net average fourth-quarter production to around 5.5 Kboed.
It said that in Malaysia, first gas from the Seligi 1b project was delivered in December, nine months ahead of schedule, with full production of around 70 mmscf/d, equivalent to 6.0 Kboed net, starting in January.
"The group delivered another impressive year of operational performance in 2025, with asset uptime of 90%, production above the top end of our guidance range at 45.6 Kboed, and strong cost management," said chief executive Amjad Bseisu.
He added that the company had expanded its South East Asia footprint, "acquiring and integrating our new Vietnam business, delivering first gas from our Seligi 1b project [in Malaysia] nine months ahead of schedule, and entering Brunei and Indonesia."
Net debt as at 31 December stood at around $435m, in line with market consensus, while cash totalled $269m.
The group's refinanced reserve-based lending facility remained undrawn, taking enhanced liquidity to about $675m, up from $475m a year earlier.
In the second half, EnQuest paid $104m in UK Energy Profits Levy tax, $22.7m on completion of the Vietnam acquisition and $20m in refinancing fees.
The London-listed company also executed a settlement of the Magnus contingent consideration mechanism, agreeing to pay $60m in cash to secure 100% of future Magnus cash flows.
Bseisu described the deal as a "credit-enhancing transaction" that "secures for EnQuest full economic exposure to Magnus, simplifies the group's balance sheet and demonstrates our long-term commitment to this core asset."
The agreement does not change previously agreed decommissioning responsibilities.
Looking ahead, EnQuest said 2026 had begun with severe weather in the UK North Sea.
Storm damage to the third-party-operated Ninian Central Platform caused an unplanned outage for Magnus in mid-January, with production reinstated on 22 February.
January year-to-date production averaged around 33.8 Kboed, reflecting the impact of the outage.
Full-year guidance is set at 41,000 to 45,000 Boepd.
Cash capital expenditure in 2026 was expected to total around $160m, with operating expenditure of about $450m and decommissioning spend of $60m.
The group said it had hedged about four million barrels of 2026 oil production at around $68 per barrel, with additional volumes covered by zero-cost collars, and has also put in place hedges for 2027 and 2028.
Bseisu said that while the company had faced "extreme weather in the UK North Sea" at the start of the year, it remained "confident in our ability to deliver top-quartile operating performance for the balance of the year and maintain stable year-on-year production."
He added that "building shareholder value remains at the heart of our capital allocation decisions," with an update on shareholder returns to be provided alongside final audited results in March.
At 0859 GMT, shares in EnQuest were up 2.19% at 15.39p.
Reporting by Josh White for Sharecast.com.
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