Results for the year ended 31 December 2023 and 2024 outlook

De-levered and positioned to deliver transformational growth

Unless otherwise stated, all figures are on a Business performance basis and are in US Dollars. Comparative figures for the Income Statement relate to the year ended 31 December 2022 and the Balance Sheet as at 31 December 2022. Alternative performance measures are reconciled within the ‘Glossary – Non-GAAP measures’ at the end of the Financial Statements.

EnQuest Chief Executive, Amjad Bseisu, said:

“EnQuest achieved its 2023 targets, delivering strong operational performance across the operated portfolio and continuing to de-lever its balance sheet, with year-end EnQuest net debt reduced to $481 million. Against the backdrop of a challenging UK fiscal environment, EnQuest has reduced net debt by c.$1.5 billion since its peak and with significant tax assets remaining, the business has a strong base, and successful track record of executing quick payback, life-extending acquisitions, from which to pursue value-accretion and production growth through M&A.

“Our top quartile operating capability, demonstrated through high production uptimes across our operated asset portfolio, underpinned 2023 production of 43.8 Kboed, which was in line with the mid-point of guidance. This operational excellence extends to our decommissioning activities, with 2023 seeing the Group complete the plug and abandonment (‘P&A’) of 25 wells, delivering top quartile well P&A performance across its Heather and Thistle projects and executing another record-breaking year of northern North Sea multi-asset well abandonments at sector-leading cost.

“We also realised value within the existing portfolio by selling a 15.0% share of both the Bressay licence and the EnQuest Producer FPSO to RockRose Energy; a transaction which represents an important step in moving the Bressay project forward.

“As we further enhance our position as a key player in the energy transition, we continue to progress our new energy and decarbonisation ambitions at the Sullom Voe Terminal under the management of our newly established subsidiary, Veri Energy. The award of four carbon storage licences during 2023 represented a key milestone for our future ambitions. Work is underway to right-size the terminal site and transform its carbon footprint, with delivery of the new stabilisation facility and power generation projects expected to reduce future CO2 emissions at SVT by c.90%. We have already reduced our total UK emissions by more than 40% from the 2018 benchmark, significantly ahead of the UK's North Sea Transition Deal targets, while our credible net zero transition plan was a key factor in EnQuest securing a B rating in the 2023 CDP Climate Change Survey.

“We have set the foundations for a pivot to growth during 2024 and continue to perform well against our full year targets, with production to 29 February 2024 averaging around 44,500 Boepd. The Group also fully paid down its RBL facility post year-end and has further reduced net debt to $409.6 million at the end of February 2024.

“Reflecting the strength of our core business, confidence in the opportunities ahead and the Group’s commitment to delivering shareholder returns during 2024, we have committed to deploy $15.0 million of capital in a share buyback programme during 2024.”

2023 performance

  • Statutory revenue and other income totalled $1,487.4 million (2022: $1,853.6 million) and adjusted EBITDA totalled $824.7 million (2022: $979.1 million).
    • Against a backdrop of continued geopolitical tension, inflation and Sterling volatility, Brent prices averaged $82.5/bbl (18.2% below 2022: $100.8/bbl) and day ahead gas prices decreased to 98.9p/Therm (51.4% below 2022: 203.5p/Therm).
    • Group production (delivered at the mid-point of guidance) averaged 43,812 Boepd (2022: 47,259 Boepd), with high levels of asset uptime across the portfolio and efficient execution of maintenance activities partially offsetting natural field declines.
  • Reflecting the above drivers and cash tax timing, net operating cash flow totalled $754.2 million, 19.0% below 2022 ($931.6 million).
    • Operating expenditure of $347.2 million was 12.4% below 2022 ($396.5 million). Unit opex declined to $21.9/boe (2022: $22.7/boe).
    • Capital investment of $152.2 million (2022: $115.8 million) was focused on low cost, quick payback projects that enhanced production and lowered emissions. Decommissioning expenditure totalled $58.9 million (2022: $59.0 million) and focused on well P&A.
  • Free cash flow generation1 remained strong, totalling $300.0 million (2022: $518.9 million).
    • Statutory reported loss after tax $30.8 million (2022: $41.2 million loss), reflecting the impact of the UK Energy Profits Levy.
  • Group liquidity (cash and available facilities) rose to $498.8 million (31 December 2022: $348.9 million). EnQuest net debt totalled $480.9 million at 31 December 2023, a 32.9% reduction versus 2022 ($717.1 million).
  • Having delivered on the Group’s strategic aims to deliver and de-lever, EnQuest is pleased to announce its first shareholder distribution, a $15.0 million buyback that will be completed in 2024.

1 Net change in cash and cash equivalents less acquisition costs and net repayments/proceeds from loans and borrowing and share issues

2024 performance and guidance

  • Net Group production expected to average between 41,000 and 45,000 Boepd (c.44,500 Boepd YTD to end-February).
  • Capital investment expected to total c.$200 million; Operating expenditure expected to total c.$415 million; and Decommissioning expenditure expected to total c.$70 million.
    • Investment is scaled to maintain production, maximise cash flow, drive capital efficiency and reduce future emissions and costs.
  • At 29 February 2024, EnQuest net debt totalled $409.6 million and the Group fully repaid the outstanding $140.0 million of its drawn reserve based lending facility (‘RBL’).

Outlook – 2025 and beyond

  • Capital-efficient investment programme; targeting organic production growth in 2025.
  • Kraken FPSO lease rate reduces by c.70% from 1 April 2025 and major projects at SVT are expected to crystallise significant emissions and operating cost reductions in 2026 and beyond.

Production and financial information


Macro conditions20232022Change
Brent oil price4 ($/bbl)82.5100.8-18.2%
Natural gas price4 (GBp/Therm)98.9203.5-51.4%
Business performance measures20232022Change
Production (Boepd)43,81247,259-7.3%
Revenue and other operating income ($m)11,459.01,839.1-20.7%
Realised oil price ($/bbl)1,281.488.9-8.4%
Average unit operating costs ($/Boe)221.922.7-3.5%
Adjusted EBITDA ($m)2824.7979.1-15.8%
Cash expenditures($m)211.1174.820.8%
Free cash flow($m)2300.0518.9-42.2%
 End 2023End 2022Change
EnQuest net (debt)/cash ($m)2(480.9)(717.1)-32.9%
Statutory measures20232022Change
Reported revenue and other operating income ($m)31,487.41,853.6-19.8%
Reported gross profit ($m)540.7652.9-17.2%
Reported profit/(loss) after tax ($m)(30.8)(41.2)25.2%
Reported basic earnings/(loss) per share (cents)(1.6)(2.2)27.3%
Net cash flow from operating activities ($m)754.2931.6-19.0%
Net increase/(decrease) in cash and cash equivalents ($m)12.939.1-67.0%

1 Including realised losses of $11.3 million (2022: realised losses of $203.7 million) associated with EnQuest’s oil price hedges
2 See reconciliation of alternative performance measures within the ‘Glossary – Non-GAAP Measures’ starting on page 65.
3 Including net realised and unrealised gains of $17.2 million (2022: net realised and unrealised losses of $189.3 million) associated with EnQuest’s oil price hedges
4 Source is Reuters Factset


2023 performance summary

Strong production performance, a lower but relatively stable commodity price environment and the Group’s commitment to disciplined, low cost, quick payback investment underpinned $300.0 million of free cash flow generation during 2023 (2022: $518.9 million). This enabled the Group to end the year with liquidity of c.$0.5 billion and reduce EnQuest net debt to $480.9 million (2022: $717.1 million). At 31 December 2023, the EnQuest net debt to adjusted EBITDA ratio was down to 0.6x, (31 December 2022: 0.7x), which shows continued progress towards the target of 0.5x.

Production of 43,812 Boepd (2022: 47,259 Boepd) reflected improved performance at Magnus and close to 100% production efficiency at Kraken following transformer upgrades, with top quartile production uptime across the operated portfolio helping to partially offset natural field declines. The Group demonstrated its differentiated operating capability by minimising the impact of the anomalous failure of the HSP transformers by reinstating Kraken production efficiently and in a short-time frame.  

Adjusted EBITDA, net cash flow from operating activities and free cash flow were $824.7 million (2022: $979.1 million), $754.2 million (2022: $931.6 million) and $300.0 million (2022: $518.9 million), respectively, with the decreases from 2022 reflecting lower production and market prices. Capital expenditure of $152.2 million (2022: $115.8 million) primarily reflected the Magnus, Golden Eagle and Malaysia well campaigns and Sullom Voe Terminal projects, while cash decommissioning expenditure of $58.9 million (2022: $59.0 million) was focused on well plug and abandonment (‘P&A’) activities at Heather and Thistle, with a record 25 wells being decommissioned during the year.

Following the establishment of the New Energy business in 2021 and having progressed three significant new energy and decarbonisation opportunities at Sullom Voe Terminal, the Group launched Veri Energy (‘Veri’), a wholly owned subsidiary of EnQuest. Veri represents the logical next step in the strategic evolution of EnQuest's new energy and decarbonisation ambitions, enabling the project team to move forward with a focused management structure and the potential to leverage financial and strategic partnerships.

In December, EnQuest announced the sale of a 15.0% equity share in the Bressay licence and the EnQuest Producer FPSO for a total consideration of £46.0 million (c. $57.0 million). Subsequently the Group received $85.6 million for a 15.0% farm-down of capital items identified for potential use on the Bressay development. Through these transactions the Group has realised near-term value, expecting to yield c.$58.0 million post-tax cash flow in 2024, and delivered an important step in moving the Bressay project forward.

Liquidity and net debt

At 31 December 2023, EnQuest net debt was $480.9 million, down $236.2 million from $717.1 million at 31 December 2022. During the year, EnQuest repaid the Group’s £111.3 million Sterling retail bond at maturity and put in place a term loan facility of up to $150.0 million. Following these steps, all the Group’s debt maturities are now aligned in 2027.

At 31 December 2023, cash drawings under the reserve based lending (‘RBL’) facility were $140.0 million against an original commitment of $500.0 million, while total cash and available facilities were $498.8 million (2022: $348.9 million) (including restricted funds and ring-fenced funds held in joint venture operational accounts totalling $172.7 million (2022: $174.3 million)).

EnQuest net debt as at 29 February 2024 was further reduced to $409.6 million, with cash and available facilities of $479.7 million. The Group also fully repaid the $140.0 million outstanding balance on the RBL facility during February 2024, reducing cash drawn to zero.

EnQuest remains focused on its strong balance sheet and its ongoing deleveraging strategy. From a position of balance sheet strength, EnQuest is pleased to announce the first shareholder distribution since its inception, a $15.0 million buyback that will be completed in 2024.

Reserves and resources

Net 2P reserves at the end of 2024 were c.175 MMboe (2022: c.190 MMboe). During the year, the Group produced c.16 MMboe (2022: c.17 MMboe). This reduction was partially offset by transfers from 2C resources at Magnus, net of other technical revisions. Net 2C resources were c.389 MMboe (2022: c.393 MMboe), with the decrease a result of progression to 2P reserves at Magnus, as noted above.

Environmental, Social and Governance

The health, safety and wellbeing of our employees remains our top priority. In 2023, EnQuest achieved Lost Time Incident (‘LTI’) frequency1 rate of 0.52 (2022: 0.57). Whilst this was an improvement versus 2022, the Group will not be complacent as it strives to deliver SAFE results with no harm to our people.

1 Lost Time Incident frequency represents the number of incidents per million exposure hours worked (based on 12 hours for offshore and eight hours for onshore)

The Group has continued to make excellent progress in reducing its absolute Scope 1 and 2 emissions, with CO2 equivalent emissions reduced by c.23% since 2020, reflecting lower flaring and lower fuel gas and diesel usage. Since 2018, UK Scope 1 and 2 emissions have reduced by c.41%, which is significantly ahead of the UK Government’s North Sea Transition Deal target of achieving a 10% reduction in Scope 1 and Scope 2 CO2 equivalent emissions by 2025 and close to the 50% reduction targeted by 2030.

In recognition of progress to date in terms of emissions reduction and the Group’s credible forward plans to deliver decarbonisation and new energy projects on the journey towards net zero by 2040, EnQuest is proud to have secured a B rating from the prestigious CDP Climate Change Survey.

EnQuest’s 2024 strategic focus is to deliver a step-change in operational growth, diversification and carbon reduction, around which the Group has repositioned both its Board and Senior Management.

In the year, Salman Malik (previously Chief Financial Officer (‘CFO’) and Managing Director, Infrastructure and New Energy) has assumed the role of Chief Executive Officer of Veri Energy. One of the outcomes of his appointment as Veri CEO is that he will step down as a Director of EnQuest at the 2024 Annual General Meeting (‘AGM’). In a refresh of the leadership team, Jonathan Copus was appointed EnQuest CFO and will be proposed for election to the Board at the AGM, while Steve Bowyer has joined EnQuest as North Sea General Manager.

Also, during 2023, our three longest serving Non-Executive Directors, Carl Hughes, Howard Paver, and John Winterman, stepped down from the Board at the 2023 Annual General Meeting (‘AGM’).

Subsequently, the Governance and Nomination Committee carried out a comprehensive search for independent Non-Executive Directors to join the Board, resulting in the appointment of Michael Borrell and Karina Litvack. Unfortunately, in December, Karina had to step down from the Board due to an unexpected conflict arising through the EU Unbundling Directive, which prohibits any director of a European power transmission company from also serving on the board of an upstream operator. As such, and as announced separately this morning, we intend to appoint Rosalind Kainyah to the Board at the Company’s 2024 AGM.

Separately, both Liv Monica Stubholt and Rani Koya have advised that they will be stepping down at the Company’s 2024 AGM. Liv Monica has served on the Board for a full three-year term and has opted to focus on her Norwegian portfolio, and Rani has advised of a need to focus on other work priorities.

At the end of 2023, the Group’s Board membership was in line with the Women Leaders Review target of 40% female representation and work continues throughout the organisation to deliver on our diversity and inclusion targets. The Board currently has 43% female representation and remains ahead of the Parker Review target with respect to minority ethnic representation, with four minority ethnic Board members.

2024 performance and guidance

Group net production averaged around 44,500 Boepd to the end of February. For the full year, the Group’s net production is expected to be between 41,000 and 45,000 Boepd, reflecting the drilling campaigns at Magnus, PM8/Seligi and Golden Eagle. Planned maintenance activities include two ten-day periods of single train operations at Kraken, with 21-day and ten-day shutdowns at each of Magnus and GKA, respectively.

Operating expenditures are expected to be approximately $415.0 million, with the increase from 2023 largely due to phasing of activities at Magnus and SVT and inflationary pressures.

Cash capital expenditure is expected to be around $200.0 million. The Group plans to execute a two-well drilling campaign at Magnus in the second half of the year, following the five-yearly rig recertification, and expects to complete the ongoing drilling campaign at Golden Eagle, where two further HDJU wells are planned. EnQuest’s Midstream team is progressing two major right-sizing projects at SVT, which together are expected to reduce terminal emissions by c.90%.

Decommissioning expenditure is expected to total approximately $70.0 million, primarily reflecting the final full year of well P&A decommissioning programmes at the Heather/Broom and Thistle/Deveron fields and preparations for removal of the topsides production facilities. This work will be completed by EnQuest’s dedicated in-house team which, per North Sea Transition Authority review data, has delivered a probabilistic average cost per well for P&A of c.£2.5 million, versus an industry benchmark of c.£4.3 million.

From 1 April 2024, EnQuest has hedged c.5.0 MMbbls of oil, with 4.1 MMbbls hedged through the use of put options with an average floor price of c.$60/bbl and 0.9 MMbbls through swaps at an average price of c.$86/bbl. The Group has hedged a total of c.1.6 MMbbls for 2025 using put options at an average floor price of c. $60/bbl.

Outlook – 2025 and beyond

The Group’s 2024 capital-efficient investment programme targets organic production growth in 2025. From 1 April 2025, the Kraken FPSO lease rate reduces by c. 70% and major projects at SVT are expected to crystallise significant operating cost and emission reductions in 2026 and beyond.


Summary financial review of 2023

(all figures quoted are in US Dollars and relate to Business performance unless otherwise stated)


Strong free cash flow generation in the period of $300.0 million (2022: $518.9 million) drove a reduction in EnQuest net debt of 32.9%, to $480.9 million (31 Dec 2022: $717.1 million). At 31 December 2023, the Group’s leverage ratio was 0.6x, close to its target of 0.5x, while cash and available facilities had increased to $498.8 million (2022: $348.9 million) with all debt now maturing in 2027.

During December, EnQuest announced the sale of a 15.0% equity share in the Bressay licence and the EnQuest Producer FPSO for a total consideration of £46.0 million (c. $57.0 million). Subsequently, the Group received $85.6 million for a 15.0% farm-down of capital items identified as suitable for use on the Bressay development. Through these transactions the Group has realised near-term value, expecting to yield c. $58.0 million post-tax cash flow in 2024, and delivered an important step in moving the project forward.

The Group’s improved balance sheet, liquidity position and significantly advantaged tax position means EnQuest is well placed to pursue growth opportunities and the Group’s Board has sanctioned the Company’s first programme of shareholder returns - committing to a $15.0 million buy back that will be completed during 2024.

Income statement


Brent prices in the period averaged $82.5/bbl (18.2% below 2022: $100.8/bbl) and the average day ahead gas price decreased to 98.9p/Therm (51.4% below 2022: 203.5p/Therm). Pre-hedging, the average oil price realised by EnQuest was $82.2/bbl (19.9% below 2022: $102.6/bbl). Post-hedging, realised oil prices averaged $81.4/bbl, narrowing the discount year-on-year to 8.4% ($88.9/bbl).

Reflecting these drivers, reported revenue totalled $1,487.4 million, a 19.8 % decline on 2022 ($1,853.6 million). Within this figure, oil sales accounted for $1,127.4 million, 25.7% below 2022 ($1,517.7 million).

Realised losses on commodity hedges totalled $11.3 million (2022: losses of $203.7 million). Unrealised gains on these contracts (mark-to-market movements) totalled $28.5 million (2022: unrealised gains of $14.5 million).

Revenue from the sale of condensate and gas, totalling $339.0 million (2022: $514.2 million), primarily relates to the onward sale of third-party gas that was not required for injection activities at Magnus. The contribution from these volumes is offset by related costs in cost of sales. Tariffs and other income generated a further $3.8 million (2022: $11.0 million), including income from the transportation of Seligi Associated gas.

Cost of sales

The Group demonstrated effective cost control to mitigate the effects of underlying inflationary pressures and the volatile Sterling to US Dollar exchange rate, noting c.83% of Group operating costs are denominated in Sterling.

Group operating expenditures of $347.2 million were 12.4% lower than in 2022 ($396.5 million), with unit operating costs (excluding foreign exchange hedging) decreasing to $21.9/Boe (2022: $22.7/Boe). The reduction in operating costs was driven by work programme optimisation across the portfolio, along with higher lease charter credits and lower diesel costs at Kraken.

Other costs of operations of $305.9 million were significantly lower than in 2022 ($487.8 million), driven predominantly by lower gas prices impacting the cost of Magnus-related third-party gas purchases which are sold on of $294.0 million (2022: $452.8 million).

Depletion expense of $292.2 million was 10.6% lower than in 2022 ($327.0 million), mainly reflecting the impact of lower production.


In the period, the Group recognised a non-cash net impairment charge of $117.4 million (2022: $81.0 million charge). This charge primarily reflected production and cost profile updates on non-operated assets, partially offset by higher forecast oil prices.

Other income and expenses

The periodic review of the net fair value of the contingent consideration owed by the Group to bp related to the Magnus acquisition led to $69.7 million of non-cash income (2022: $232.5 million non-cash expense), driven by adjustments to the discount rate (2023: 11.3%, 2022: 10.0%) and forward cost assumptions, partially offset by higher forecast long-term oil prices.

A non-cash charge of $32.8 million has been recognised to reflect a net increase in the decommissioning provision of fully impaired non-producing assets (including the Thistle decommissioning linked liability) (2022: non-cash income of $42.8 million).

Also included within other expenses are costs associated with EnQuest’s Veri Energy business of $1.6 million (2022: $1.2 million).

Adjusted EBITDA

Adjusted EBITDA was $824.7 million, down 15.8% compared to 2022 ($979.1 million).

Finance costs

The Group’s overall finance costs of $230.9 million were 8.6% higher than in 2022 ($212.6 million) primarily driven by higher interest charges, reflecting higher prevailing interest rates, and the unwinding of discounting on contingent consideration related to the acquisition of Magnus and decommissioning and other provisions, partially offset by lower fees associated with the Group’s refinancing activities.


The 2023 tax charge was impacted by the first full year of the UK EPL at the higher rate of 35% (2022 reflected seven months of UK EPL at 25%).

The $262.6 million total tax charge includes a $77.2 million net EPL charge, which is calculated on a higher profit before tax, and the impact of limited corporation and supplementary corporation tax relief on impairments related to assets where historical deferred tax initial recognition exemptions have already been applied (2022: $244.4 million tax charge).

The Group’s effective tax rate for the period was a charge of 113.3% (2022: charge of 120.3%), which primarily reflects the non-deductibility of various cost items under EPL.

EnQuest has recognised UK North Sea corporate tax losses of $2,007.9 million at 31 December 2023 - the reduction in the period reflecting utilisation of ring-fence corporation tax losses against the Group’s profits before tax.

Cash flow, net debt and liquidity

Reflecting strong free cash flow generation in 2023 of $300.0 million (2022: $518.9 million), EnQuest net debt at 31 December 2023 amounted to $480.9 million, a $236.2 million year-on-year reduction (31 December 2022: $717.1 million). The Group ended the year with $313.6 million of cash and cash equivalents (2022: $301.6 million), and cash and available facilities totalling $498.8 million (2022: $348.9 million), with the Group’s refinancing activities extending the Group’s debt maturities to 2027.

With the Bressay-related farm down proceeds offset by a vendor financing facility of $141.4 million (from EnQuest to RockRose, arranged to manage the companies’ respective working capital positions) the Bressay transactions were net debt neutral at 31 December 2023. In the first quarter of 2024, EnQuest received a $108.8 million repayment of the vendor financing facility. The remaining amount ($36.3 million) is repayable through net cash flows from the Bressay field, in accordance with the agreed payment schedule. Both EnQuest and RockRose are committed to delivering the Bressay development. In the event, however, that the project does not achieve regulatory approval, there remains an option to deploy the assets on alternative projects. As such, the gain from the transaction is reported within deferred income on the balance sheet.

In the first quarter of 2024, EnQuest repaid the outstanding $140.0 million principal on its RBL facility. The facility remains available to EnQuest for future drawdown.


For further information, please contact:

EnQuest PLC Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Jonathan Copus (Chief Financial Officer) 
Craig Baxter (Head of Investor Relations)   
Teneo Tel: +44 (0)20 7353 4200
Martin Robinson
Martin Pengelley
Harry Cameron    

Presentation to Analysts and Investors

A presentation to analysts and investors will be held at 09.30 today – London time. The presentation will be accessible via a webcast by clicking here.

EnQuest investor relations team will be hosting a presentation via Investor Meet Company, primarily focused on the Company’s retail investors on 11 April at 14:00 - London time.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet ENQUEST PLC via:

Investors who already follow ENQUEST PLC on the Investor Meet Company platform will automatically be invited.

Notes to editors

This announcement has been determined to contain inside information. The person responsible for the release of this announcement is Chris Sawyer, General Counsel and Company Secretary.


EnQuest is providing creative solutions through the energy transition. As an independent energy company with operations in the UK North Sea and Malaysia, the Group's strategic vision is to be the partner of choice for the responsible management of existing energy assets, applying its core capabilities to create value through the transition.

EnQuest PLC trades on the London Stock Exchange.

Please visit our website for more information on our global operations.

Forward-looking statements: This announcement may contain certain forward-looking statements with respect to EnQuest’s expectations and plans, strategy, management’s objectives, future performance, production, reserves, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this announcement should be construed as a profit forecast. Past share performance cannot be relied upon as a guide to future performance.