May 23, 2019 / 6:24 AM / 4 months ago

EnQuest sees debt reduction on track, reaffirms output guidance

LONDON (Reuters) - British North Sea-focused oil producer EnQuest had reduced its net debt to $1.724 billion (1.36 billion pounds) by the end of April from $1.774 billion at the end of 2018, it said on Thursday, also reaffirming its output guidance.

It expects to produce between 63,000 and 70,000 barrels of oil equivalent per day (bpd) this year and its net debt to core earnings ratio to be below two times at current oil prices.

A payment of $100 million is due in October for the group, which had a market capitalisation of 390 million pounds as of Wednesday’s close.

Its Kraken oil field, which underperformed last year, has produced within its guidance for this year at 33,000 bpd.

In March, EnQuest shares dropped to a three-year low after its partner in Kraken, Cairn, downgraded its reserve assumptions by around a fifth.

Like many oil producers, EnQuest hedges some of its output. Around 5.4 million barrels were sold by the end of April with a floor price of $66 a barrel and a further 6.2 million barrels through 2019 are hedged at the same level. Just under 1 million will have a floor of $56 a barrel, it said.

Reporting by Shadia Nasralla; Editing by Mark Potter

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