EnQuest (LON:ENQ) executives used the company’s 2025 full-year results presentation to highlight higher production, an expanded reserve and resource base, and a growing international footprint alongside continued cost discipline and balance-sheet actions aimed at supporting future growth and shareholder returns.
Operational and portfolio highlights
Chief Executive Officer Amjad Bseiso said EnQuest’s combined 2P+2C volumes rose 18% in 2025 versus 2024, supported by new Southeast Asia entries and continued focus on mature North Sea assets. He noted the company’s 2P reserves remain “highly tangible,” with 78% of EnQuest’s 163 million barrels in the 1P proven category, and emphasized operatorship across the portfolio, with EnQuest controlling more than 97% of its 2P reserves.
North Sea General Manager Ian McKimmie said Magnus recovered from a five-week NCP outage, and that despite the disruption, Magnus production was 8% higher year-on-year. Excluding the outage, he said normalized efficiency was 93%. McKimmie added that an additional unplanned NCP outage in early 2026 also impacted Magnus, but production had “bounced back” to around 19,000 barrels per day since early March.
At Kraken, McKimmie reported production efficiency of 95% in 2025, describing continued strong FPSO performance. He outlined plans for a future infill campaign with three wells identified (Pembroke, Cumbria, and Modine reservoirs), with EnQuest aiming to return to drilling at Kraken in 2028 and 2029. He also said EnQuest is targeting about 40 million barrels of oil equivalent of upside through an enhanced oil recovery (EOR) project, with simulation work under way and polymer selection and pilot testing plans following initial testing in 2025.
Southeast Asia expansion and gas-weighted growth
Management repeatedly emphasized a strategic shift toward Southeast Asia and a larger role for gas in the production mix. Bseiso said EnQuest made three country entries during 2025: Vietnam (producing), Brunei (development via a 50/50 joint venture with Brunei Energy Exploration), and Indonesia (appraisal and exploration through the “Tangguh alliance” led by BP, including gas prospectivity in the Gaea and Gaea 2 blocks).
In Malaysia, Bseiso and McKimmie highlighted the Seligi 1b non-associated gas project. Bseiso said first gas was delivered in December 2025 within a nine-month window and reached 70 million standard cubic feet per day, matching contracted volumes. He added EnQuest subsequently debottlenecked operations to supply around 100 million standard cubic feet per day during much of March, representing a 40% uplift versus contracted volumes, following requests from Petronas to access additional gas.
In Vietnam, McKimmie said EnQuest completed its acquisition of Harbour Energy’s Vietnam business in July and then executed three well workovers, lifting gross production to more than 10.3 thousand barrels per day in the fourth quarter. He also said EnQuest agreed with PetroVietnam to extend the Block 12W production sharing contract on existing terms out to 2034, providing time to assess prospectivity including multiple gas discoveries and additional drilling targets.
Looking ahead, Bseiso said Southeast Asia is expected to increase as a share of the company’s production mix, with the company currently around one-third Southeast Asia and two-thirds U.K., moving to roughly 55% Southeast Asia by 2030. He also outlined other regional developments, including plans in Sarawak at the DEWA cluster for an initial phase expected to deliver 9,000 barrels per day and 28 million barrels equivalent net to EnQuest, and in Brunei where first gas is targeted toward the end of the decade with expectations of 15,000 barrels per day (net to EnQuest’s 50% share) from Merpati and Meragi.
Financial results, balance sheet actions, and dividend increase
Chief Financial Officer Jonathan Copas reported 2025 revenue of $1.1 billion, underpinned by 5% production growth while Brent prices declined 15% during the period. He said EnQuest offset some price impacts through hedging. Cost of sales totaled $838 million, while underlying operating costs were flat year-on-year despite a 10% weakening in the U.S. dollar. Unit operating expenditure fell 2% to $25 per barrel. Adjusted EBITDA was $504 million.
Copas pointed to two significant income statement items. EnQuest recorded a net gain of $239 million tied to settling the Magnus contingent consideration mechanism with BP. Separately, EnQuest recorded a one-off non-cash tax charge of $124 million associated with the 2024 decision to extend the U.K. Energy Profits Levy (EPL) by two years, enacted in March 2025. Excluding that non-cash tax charge, Copas said EnQuest would have delivered net profit of $126 million.
On cash flow, EnQuest generated $498 million of operating cash flow and invested $179 million in capex, including spending on Seligi 1b (which accelerated first gas by nine months) and Magnus drilling, with further drilling planned for 2026 and 2027. Decommissioning capital spend was $57 million. EnQuest paid $107 million of cash tax, which Copas said related to prior periods with higher oil prices, and he expected a lower tax bill in 2026. Net debt at year-end was $435 million.
Copas also discussed a November 2025 refinancing of EnQuest’s reserve-based lending (RBL) facility. The new RBL totals $800 million, split into a $400 million loan tranche (undrawn at year-end) and a $400 million letter of credit tranche. The facility includes an $800 million accordion option. Copas said the refinancing increased the group’s committed liquidity (cash plus undrawn facilities) to $679 million at 31 December 2025, up $200 million year-on-year, and reduced the margin to SOFR plus 4% from SOFR plus 4.5%. He said the RBL maturity is December 2031. EnQuest also reported $644 million of bonds outstanding with no maturities before the end of 2027.
On shareholder returns, Copas said EnQuest increased its dividend to $20 million from $15 million the prior year, while Bseiso noted the board had previously implemented share purchases and would continue to consider buybacks and dividends as part of capital allocation.
Outlook, hedging, and key projects
For 2026, Copas guided production of 41,000–45,000 barrels of oil equivalent per day, including the impact of the early-2026 NCP outage. Operating expenditure guidance was $450 million, including a $30 million allowance for foreign exchange impacts from a weakening dollar. EnQuest’s 2026 capex guidance is $160 million, including drilling and workovers at Magnus and PM8/Seligi and long-lead items for the NCP bypass project. Decommissioning guidance was $60 million.
On hedging, Copas said EnQuest uses hedging to underpin budgets and support RBL capacity while keeping some exposure to price upside. In 2025, swaps delivered an average floor price of $70 per barrel. As of the call, EnQuest had 5 million barrels hedged in 2026 at an average price of $71.30 and 3.5 million barrels hedged in 2027 at $64.40, with a small position in 2028. Copas said about 50% of 2026 volumes were unhedged, and about two-thirds of 2027 production was exposed to higher oil prices.
Operationally, management highlighted efforts to mitigate third-party infrastructure risk at Magnus through the NCP Bypass Project, being progressed with Total. McKimmie said full support had been secured from the NSTA, with a final investment decision planned for mid-2026 and long-lead equipment purchases in 2026 to support execution in 2027.
In the Q&A, Bseiso described engagement with the U.K. government on fiscal policy through the Fiscal Forum and said the proposed oil-and-gas price mechanism was “welcomed by industry.” He also reiterated EnQuest’s focus on emissions reductions, stating emissions were down 45% versus a 2018 baseline, and discussed carbon capture and storage work tied to legacy fields and infrastructure, while noting EnQuest would need clarity on the economics and credits related to emissions taxation.
About EnQuest (LON:ENQ)
EnQuest is providing creative solutions through the energy transition.
EnQuest is an independent energy company. We focus on mature late-life assets, responsibly optimising production to provide energy security. Where we can, we repurpose our infrastructure to deliver renewable energy and decarbonisation projects before executing world-class decommissioning.
Shares in the Company trade on the London Stock Exchange (ENQ.L).
