EnQuest Reduces Net Debt to $880 Million on Free Cash Flow of $332 Million in the First Half

The pattern of oil barrels is seen in front of the rising stock market chart in this illustration, July 24, 2022. REUTERS/Dado Ruvic/Illustration

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LONDON, Aug 2 (Reuters) – British North Sea oil producer EnQuest (ENQ.L) cut debt to $880 million on the back of $332 million in cash in the second half, he announced on Tuesday.

EnQuest, with a market capitalization of around $636 million on Monday, produced just 50,000 barrels of oil equivalent per day (boed) in the three months to the end of June, it said in a statement. operations update.

Its debt stood at $1.2 billion in February.

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EnQuest had free cash flow of $142 million in the second half of last year, when its production was around 46,000 boed and oil prices were much lower.

He said cash in the second half was affected by planned maintenance work on his fields and the one-off 25% tax imposed by the government on the sector.

EnQuest has hedged 3.4 million barrels of its production through December at an average floor price of $60 per barrel and an average ceiling price of $79 per barrel.

On next year’s production, it hedged a similar amount between average prices of $57 and $77 a barrel.

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Reporting by Shadia Nasralla; Editing by Kirsten Donovan

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Ann J. Cox