The Lemon Fool

Anyone know the reason for the jump in price today? All I can see is an RNS on a Director's share purchase.

I hold the debt and was hoping to buy more, but that is up as well.

(cross post from debt board).

Opinions seem to be very divided about ENQ. The rise noted by Hiriskpaul has been sustained over the last2 weeks, but that's all.
I was considering buying some ENQ a while back, but held off and bought some ENQ1 (bonds) instead. If it follows the pattern established by PMO/PMO1 (Premier), the bonds will start to claw their way towards par before the SP really starts to pick up significantly. In terms of its debt burden, ENQ seems to me to be about where PMO was a couple of years ago. This article from seekingalpha sums up the position quite well.

https://seekingalpha.com/article/4251777-enquest-14-percent-yield-back-strong-cash-flow-deleveraging-process

The article concludes that ENQ is heavily underpriced compared with its peers. The market, however, seems not to agree and considering that the Brent Crude OP is over $72/bbl, up from below $70 two weeks ago, there seems to be little enthusiasm for the ENQ stock. The bonds are flatlining too.

I dunno, but I am tempted.

S

The 7% ENQ1 down to 52p to buy today.
Tempting to add, but how long can they sustain this oil price.

V8

Bought some at 52p. Fingers crossed.

V8

These are nearly back to par. Got an online quote from HL today to sell 20k nominal at 97.25. These are still trading dirty despite the likely coupon payment in February.

Not sure whether to reduce or get out while the PoO is high. Thoughts from those who understand the oil industry would be welcome!

I have actually bought a few ENQ1 about a week ago. Not very many. My holding on this is small at less than 0.5% of my portfolio.

My reasoning is that with oil so high they must surely have hedged a decent proportion of output for the next 2-3 years which covers the period to the bond expiry. I did look it up at the time but my investment is so small it appears I have no notes.

To my unknowledgable eyes on the oil industry, Enquests results are looking quite good: https://www.londonstockexchange.com/new ... e/16333403

I don't hold the ords, but do hold the 9% 2027 bonds, having taken part in the exchange offer for the 2023s. Can anyone tell me why the price of the ords is languishing considering the considerable progress made on the debt? Should I be concerned about something here?

hiriskpaul wrote:To my unknowledgable eyes on the oil industry, Enquests results are looking quite good: https://www.londonstockexchange.com/new ... e/16333403
I don't hold the ords, but do hold the 9% 2027 bonds, having taken part in the exchange offer for the 2023s. Can anyone tell me why the price of the ords is languishing considering the considerable progress made on the debt? Should I be concerned about something here?

I think Labour+windfall tax.

V8

88V8 wrote:

hiriskpaul wrote:To my unknowledgable eyes on the oil industry, Enquests results are looking quite good: https://www.londonstockexchange.com/new ... e/16333403
I don't hold the ords, but do hold the 9% 2027 bonds, having taken part in the exchange offer for the 2023s. Can anyone tell me why the price of the ords is languishing considering the considerable progress made on the debt? Should I be concerned about something here?

I think Labour+windfall tax.

V8

That had crossed my mind. As far as the bonds are concerned though this should not present too great a challenge I hope.

hiriskpaul wrote:To my unknowledgable eyes on the oil industry, Enquests results are looking quite good: https://www.londonstockexchange.com/new ... e/16333403

I don't hold the ords, but do hold the 9% 2027 bonds, having taken part in the exchange offer for the 2023s. Can anyone tell me why the price of the ords is languishing considering the considerable progress made on the debt? Should I be concerned about something here?

The market is on crack. Everyone wants gilts and will sell their oil/resources stock for any price as long as they can buy a bit of FI (or if they're really savvy AI stocks) with the proceeds.


GS
@Pardon the sarcasm one of those days.

88V8 wrote:

hiriskpaul wrote:To my unknowledgable eyes on the oil industry, Enquests results are looking quite good: https://www.londonstockexchange.com/new ... e/16333403
I don't hold the ords, but do hold the 9% 2027 bonds, having taken part in the exchange offer for the 2023s. Can anyone tell me why the price of the ords is languishing considering the considerable progress made on the debt? Should I be concerned about something here?

I think Labour+windfall tax.

V8

Yes V8. For that reason I have given up on UK oil stocks. When even the Conservatives are in fact predatory socialists, it's time to rethink.

There are some very cheap foreign oil stocks out there, PetroBrasilia is one of my favourites : https://finance.yahoo.com/quote/PBR/
Low PE but huge market cap & very high dividend. Brazil is now under the leadership of Da Silva, who seems more concerned about environmental issues like saving the rainforests (which I approve of) rather than ripping off shareholders (which is theft).

Forgot to add : PBR has an ADR which is an approval rating of sorts.