EnQuest announces results for the year ended 31 December 2025 and 2026 outlook

EnQuest has announced results for the year ended 31 December 2025 and 2026 outlook.

Unless otherwise stated, all figures are in US Dollars. Comparative figures for the Income Statement relate to the year ended 31 December 2024 and the Balance Sheet as at 31 December 2024. Alternative performance measures are reconciled within the ‘Glossary – Non-GAAP measures’ at the end of the Financial Statements.

EnQuest Chief Executive, Amjad Bseisu, said:

'In a volatile world, EnQuest stands out for its consistent operational delivery, highly tangible reserves base, disciplined investment, and a strategy anchored in diversified growth. Our position as a top quartile operator, combined with a strengthened financial base and an increasingly diversified portfolio, sets the stage for a pivotal period of growth across the UK North Sea and South East Asia.

2025 was a busy year, in which we grew and diversified our operations. Asset uptime averaged c.90%, and we grew production by 5.4% to deliver above the upper end of our market guidance. We lowered our unit operating costs despite a significant weakening of the US Dollar, and we executed multiple fast-payback production investments. We grew rapidly in South East Asia, integrating our new Vietnam business, bringing Seligi 1b gas onstream (Malaysia) nine months ahead of schedule, and we were awarded licences in Brunei and Indonesia.

In Q4 2025, we also refinanced our RBL, strengthening our banking group and unlocking $200 million of additional liquidity (cash and undrawn facilities totalling $679 million at 31 Dec 2025). The RBL and EnQuest’s broader credit positioning have since been further enhanced by the $60.0 million settlement of the Magnus contingent consideration mechanism, which removes a $432.9 million balance sheet liability and unlocks for EnQuest c.$777 million in additional undiscounted forward Magnus cash flow.

These actions ensured that we began 2026 with confidence and momentum. Reflecting strong Peninsular Malaysia gas demand and robust well performance, Seligi 1b is regularly delivering up to 40% above the field’s contracted volumes, and, having resolved third-party disruption to Magnus (due to extreme North Sea weather), Group production has consistently exceeded 50 Kboed during March. With production enhancement investment programmes scheduled for the balance of the year, we reiterate our annual guidance target of 41 to 45 Kboed.

As we work to maximise the value of our existing assets, accelerate our expansion in South East Asia, and use our advantaged UK tax position and operating expertise to execute a material UK North Sea transaction, we expect that continued successful delivery will be transformative, broadening our production base, increasing cash flow and enhancing shareholder returns.

Reflecting the resilience of our core business and our commitment to sustainable shareholder returns, the Board has proposed an increased final 2025 dividend of approximately $20.0 million, subject to shareholder approval.'

2025 performance

• EnQuest operates 97% of its asset portfolio, and in 2025, the Group delivered another year of top quartile performance.
  • Production of 45,606 Boepd (including pro forma Vietnam volumes) was above the top end of market guidance (pro forma 40,000 to 45,000 Boepd). Underlying asset uptime of 89% was at the top end of sector performance.
  • Reported production for the year, which includes Vietnam volumes from 9 July, was 42,945 Boepd (2024: 40,736 Boepd).
• 2P reserves totalled 162.5 MMboe (2024: 168.6 MMboe) at year end; 78% of which are in the highly tangible 1P (proven) volume category.
• Investment in fast payback projects grew and diversified production, whilst lowering unit costs and reducing emissions.
  • UK production remained within 4% of 2024 volumes. Magnus output rose 8%, to 15.3 Kboed, despite a five-week third-party infrastructure outage. Excluding this outage, North Sea production efficiency was 92%.
  • In July, EnQuest completed the acquisition of Harbour Vietnam. EnQuest has already undertaken three proactive well investments at Block 12W, boosting net average Q4 production to c.5.5 Kboed.
  • South East Asian production grew 13% year-on-year, and in December 2025 EnQuest commenced gas production from Seligi 1b (Malaysia), nine months ahead of schedule. Full production (c.70 mmscf/d, 6.0 Kboed net) began in January 2026.
• EnQuest became the first company to be named Malaysia Operator of the Year in consecutive years at the PETRONAS Emerald Awards. EnQuest was also recognised with an award for Abandonment Excellence in Malaysia.
• New country entries enhance diversified growth across South East Asia, targeting c.35 Kboed in net production in the region by 2030.
  • Brunei Darussalam - awarded operatorship of the Block C PSC in July, where EnQuest plans to deliver c.15 Kboed of gas production by 2029 (structured around a 50:50 JV with the Brunei government).
  • Indonesia - awarded operatorship and a 40% interest in the Gaea and Gaea II PSCs in August. With prospectivity of more than 100 Tcf across multiple prospects, and the bp Tangguh partnership a 40% partner, the blocks are well positioned to access LNG markets.

Financial highlights

• Reserve Based Lending facility refinanced in Q4 2025. Backed by eight leading banks, the $800 million facility provides significant transactional capacity ($400 million loan tranche) and simplifies management of UK decommissioning security ($400 million letter of credit tranche). Both tranches can be increased by $400 million, via an $800 million accordion.
  • With the RBL fully undrawn at year end, cash and available facilities totalled $678.6 million (31 December 2024: $474.5 million).
• EnQuest net debt of $433.9 million (31 December 2024: $385.8 million) followed payment in H2 2025 of UK EPL tax of $104.1 million; $22.7 million on completion of the Vietnam acquisition and RBL refinancing fees totaling $17.8 million.
  • Revenue and other income totalled $1,118.3 million (2024: $1,180.7 million), with adjusted EBITDA of $503.8 million (2024: $673.9 million). Both figures reflect lower oil revenues, with Brent falling 15% year-on-year. Cost discipline and active hedging held operating costs flat, despite a 10% weakening of the US Dollar.
  • Net $238.9 million gain on settlement of the Magnus contingent consideration simplifies EnQuest’s balance sheet.
  • Reported profit after tax of $1.6 million (2024: $93.8 million) includes the impact of the two-year extension of EPL. Stripping out this non-cash item, the profit after tax would have been $125.5 million.
  • Capital investment $179.2 million (2024: $252.9 million), inclusive of c.$40 million in Seligi 1b growth capex. Decommissioning expenditure $56.8 million (2024: $60.5 million), focused on well plugging and abandonment and Heather topsides removal.
  • The Group declared its maiden dividend of c.$15 million, which was paid in June 2025.

2026 outlook

• EnQuest is focused on delivering continued operational excellence and value-accretive transactions in the UK and in South East Asia.
  • Credit-enhancing settlement of the Magnus contingent consideration, completed in February for $60.0 million.
  • By crystallising payments that would otherwise have been payable over time (valued at $432.9 million on a discounted basis at 30 June 2025), this settlement unlocks the full upside of one of the Group’s core assets.
  • A six-well Magnus infill drilling programme and production-enhancing well interventions are due to commence in Q2 2026.
• Net Group production is expected to average between 41,000 and 45,000 Boepd.
  • Production to end February averaged 32,429 Boepd, including the deferral of c.650 kbbls (c.11,000 Boepd) due to a five-week third-party infrastructure outage at Magnus. In March, Group production has consistently exceeded 50,000 Boepd.
    • In Malaysia, EnQuest is producing increased Seligi gas volumes to support rising and sustained Peninsular Malaysia demand. March gross gas volumes have regularly reached c.100 mmscf/d, materially exceeding the nominated contract volume of 70 mmscf/d.
• Operating expenditure expected to total c.$450 million; capital investment expected to total c.$160 million; Decommissioning expenditure expected to total c.$60 million.
• From 1 April 2026, EnQuest has hedged a total of 5.1 MMbbls for the next 12 months with an average floor price of $71.3/bbl and a further 3.5 MMbbls in the subsequent 12-month period with an average floor price of $64.4/bbl, predominantly utilising swaps.
• The Group is pleased to propose a 2025 final dividend of 0.8 pence per share, equivalent to c.$20 million, payable in June 2026 following shareholder approval at the Group’s Annual General Meeting.

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Source: EnQuest