EnQuest sees debt reduction on track, reaffirms output guidance

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LONDON, May 23 (Reuters) - British North Sea-focused oil producer EnQuest ENQ.L had reduced its net debt to $1.724 billion by the end of April from $1.774 billion at the end of 2018, it said on Thursday, also reaffirming its output guidance.

It expects to produce between 63,000 and 70,000 barrels of oil equivalent per day (bpd) this year and its net debt to core earnings ratio to be below two times at current oil prices.

A payment of $100 million is due in October for the group, which had a market capitalisation of 390 million pounds ($493 million) as of Wednesday's close.

Its Kraken oil field, which underperformed last year, has produced within its guidance for this year at 33,000 bpd.

In March, EnQuest shares dropped to a three-year low after its partner in Kraken, Cairn CNE.L, downgraded its reserve assumptions by around a fifth.

Like many oil producers, EnQuest hedges some of its output. Around 5.4 million barrels were sold by the end of April with a floor price of $66 a barrel and a further 6.2 million barrels through 2019 are hedged at the same level. Just under 1 million will have a floor of $56 a barrel, it said.

($1 = 0.7908 pounds)

EnQuest Outlookhttps://tmsnrt.rs/2ErqIg6

(Reporting by Shadia Nasralla; Editing by Mark Potter)

((Shadia.Nasralla@thomsonreuters.com; +44 207 542 5083; +44 778 99 43141; Reuters Messaging: Reuters Messaging: shadia.nasralla.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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