EnQuest PLC

Results for the year ended 31 December 2022 and 2023 outlook

5 April 2023

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 period ended 31 December 2021 and the Balance Sheet as at 31 December 2021. Alternative performance measures are reconciled within the `Glossary - Non-GAAP measures' at the end of the Financial Statements.

EnQuest Chief Executive, Amjad Bseisu, said:

"Throughout 2022, we continued to demonstrate progress against our strategic priorities of "deliver, de-lever and grow". Production was at the mid-point of our guidance range, we generated significant free cash flow of $518.9 million and reduced our year end net debt to $717.1 million, its lowest level since 2014. We also refinanced our debt facilities, materially extending their maturities.

"We continue to progress our new energy and decarbonisation ambitions at the Sullom Voe Terminal and delivered a 24 well abandonment programme, the largest multi-asset well decommissioning campaign seen in the UK Northern North Sea, demonstrating strong capability as a transition company. Our integrated, capability-led business model and our advantaged tax position in the UK enhance our ability to pursue accretive M&A.

"We have continued to perform well against our full year targets. Production to the end of March has averaged around 47,800 Boepd and we have further reduced our net debt, which was down to $624.3 million at the end of February.

"Throughout 2023, we will remain focused on driving performance in our Upstream and Decommissioning businesses while pursuing our decarbonisation and new energy opportunities in a capital-light manner. We also intend to pursue balanced and disciplined capital allocation that will include shareholder returns in the near future.

"With our differentiated business model and the resilience, creativity and adaptability of our people, we are well positioned to deliver on our plans for the future."

• Group net production averaged 47,259 Boepd (2021: 44,415 Boepd1), reflecting improved performances at Magnus and PM8/Seligi and the contribution from Golden Eagle
• Revenue and other operating income of $1,839.1 million (2021: $1,320.3 million) and adjusted EBITDA of $979.1 million (2021: $742.9 million) reflecting materially higher oil prices and higher production
• Cash generated from operations was $1,026.1 million (2021: $756.9 million)
• Cash capital expenditure of $115.8 million (2021: $51.8 million)
• Cash decommissioning expenditure of $59.0 million (2021: $65.8 million)
• Strong free cash flow generation2 of $518.9 million (2021: $396.8 million)
• Cash and available facilities amounted to $348.9 million at 31 December 2022 (2021: $318.7 million), with EnQuest net debt reduced to $717.1 million (2021: $1,222.0 million)
• Statutory reported loss after tax was $41.2 million (2021: profit after tax of $377.0 million), primarily driven by the recognition of a non-cash deferred tax liability associated with the UK Energy Profits Levy

1 2021 includes Golden Eagle contribution for the period 22 October to 31 December, averaged over the 12 months to the end of December

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

• Year to date March production averaged around 47,800 Boepd
• Net debt amounted to $624.3 million at 28 February 2023

• During the first quarter of 2023, the Group repaid $118.0 million of its reserves-based lending facility, with drawings reduced to $282.0 million

• Hedges in place for c.7.9 MMbbls of oil, predominantly through the combination of puts and costless collars. The average floor price is $58/bbl and the ceiling associated with the 3.3 MMbbls of costless collars is $75/bbl

• 2023 full year average net Group production expected to be between 42,000 and 46,000 Boepd
• Full year operating costs are expected to be c.$425.0 million
• Cash capital expenditure is expected to be c.$160.0 million
• Cash decommissioning expenditure is expected to be c.$60.0 million

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