EnQuest Transformational Malaysia Deal Doubles Production, Accelerates Diversification

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EnQuest Transformational Malaysia Deal Doubles Production, Accelerates Diversification

C A Z E N O V E Europe Equity Research

10 June 2026

EnQuest Overweight

ENQ.L, ENQ LN

Transformational Malaysia Deal Doubles Price (09 Jun 26):19p

Production, Accelerates Diversification Price Target (Dec-27):29p

Earlier this morning, EnQuest announced the proposed acquisition of three European Oil & Gas

ACMalaysian asset packages from Petronas. On a combined basis, the packages add Alejandra Magana

~57 kboepd, more than doubling current Group production (JPMe 2026: 44 (44-20) 3493-8031

kboepd) and establishing a production base capable of sustaining >100 kboepd. In alejandra.x.magana@jpmchase.com

our view, the transaction materially accelerates EnQuest’s diversification agenda J.P. Morgan Securities plc

with a long-awaited M&A lever. We also like the phased payment structure, with Riddhi Agarwal

only ~66% of the $833mm total consideration payable in 2026 ($4/boe upfront; (91-22) 6157-5048

riddhi.x.agarwal@jpmorgan.com

~$5.4/boe including deferred consideration), preserving balance sheet flexibility J.P. Morgan India Private Limited

at 1.1x PF leverage, which we see as particularly relevant given balance sheet

resilience has become a growing focus in client discussions as investors Specialist Sales contact details:

increasingly assess E&Ps through a post-SoH disruption lens. Operationally, the Ian Mitchell - Specialist Sales -

deal represents a step-change in scale, more than doubling FY25 production, while European Energy

adding higher cash-flow barrels outside the EPL regime. The deal is expected to (44-20) 7134-1356

close YE26, subject to the waiver or expiry of PSC partners’ pre-emptive rights on ian.e.mitchell@jpmorgan.com

Package 2 and shareholder approval.