EnQuest Proposed Malaysia Acquisition Lays the Foundation for a New EnQuest

Research evidence excerpt

EnQuest Proposed Malaysia Acquisition Lays the Foundation for a New EnQuest

C A Z E N O V E Europe Equity Research

03 July 2026

EnQuest Overweight

ENQ.L, ENQ LN

Proposed Malaysia Acquisition Lays the Foundation for Price (02 Jul 26):22p

a New EnQuest ▲Price Target (Dec-27):35p Prior (Dec-27):29p

In this note, we analyze EnQuest’s recently announced $833m proposed

acquisition of Malaysia assets from Petronas, update our model to incorporate the European Oil & Gas

transaction, and review the financial and valuation implications of the deal. In our Alejandra Magana AC

view, the transaction delivers the long-awaited transformational acquisition that (44-20) 3493-8031

management has been seeking for several years, materially improving EnQuest’s alejandra.x.magana@jpmchase.com

J.P. Morgan Securities plc

geographic mix, product mix, and cost structure, while more than doubling

Riddhi Agarwalproduction and adding a deeper inventory of operated mature-life assets where the

(91-22) 6157-5048

company has a proven track record. Importantly, we believe the transaction also riddhi.x.agarwal@jpmorgan.com

preserves several meaningful sources of additional positive catalysts. First, J.P. Morgan India Private Limited

with pro forma leverage remaining manageable (~1.3x on our estimates versus

mgmt’s 1.5x ceiling), EnQuest retains financial flexibility to pursue additional Specialist Sales contact details:

acquisitions, either in Malaysia where it can leverage its expanded operating Ian Mitchell - Specialist Sales -

platform and infrastructure, or in the UK where its >$2B tax loss asset remains a European Energy

strategic advantage. Second, the enlarged and more resilient cash flow base should (44-20) 7134-1356

ian.e.mitchell@jpmorgan.com