EnQuest PLC reported an 18% year-on-year increase in cash revenue to $609 million for the first half of 2026, driven by higher production and oil price realizations. Total reported revenue stood at $530 million, including a $79 million non-cash unrealized hedging adjustment. Adjusted EBITDA rose 13% to $273 million, while operating cash flow climbed 31% to $281 million, according to the company’s earnings update.
The group’s net production reached 12,500 barrels of oil equivalent per day (boepd), up 9% from the prior year, supported by incremental gains in Vietnam and Seligi. However, production at the Magnus field was reduced by more than 4,000 boepd due to third-party infrastructure disruption. Full-year 2026 production guidance was narrowed to a range of 41,000 to 43,000 boepd, down from the prior 41,000 to 45,000 boepd estimate.
Capital expenditure totaled $78 million in the period, with decommissioning costs at $28 million and a $15 million tax charge reflecting U.K. and Southeast Asian jurisdictions. Net debt stood at $517 million as of June 30, 2026, while cash and cash equivalents amounted to $206 million. Transaction-ready liquidity increased by $80 million from year-end 2025 to $759 million.
EnQuest highlighted its planned acquisition in Malaysia, expected to close on December 31, 2026, for a consideration of less than $2 per barrel. The deal is projected to add 300 million barrels of 2P reserves and nearly 1 billion barrels of total 2P/2C resources. Upon integration by January 1, 2027, production from the acquired assets is expected to lift group output above 100,000 boepd. The acquisition aligns with the company’s strategy to operate mature and underinvested assets, Chief Executive Officer Amjad Bseisu said.
Operational efficiency remained strong, with group production efficiency at 89% excluding third-party impacts, compared to a 2025 sector average of 76%. The Seligi gas project supplied volumes 40% above committed rates of 70 million standard cubic feet per day, reaching up to 150 million standard cubic feet per day. Oil price realizations averaged $87 per barrel before hedging and $84 per barrel after hedging.
The company maintained its full-year 2026 operating cost guidance at $670 million, with unit operating costs projected to decline to $16 per barrel post-Malaysia integration. Capital expenditure for the Malaysia acquisition is estimated at $170 million. EnQuest’s shares fell 3.47% to $26.40 following the update, trading near its 52-week high of $27.95.
