EnQuest (LON: ENQ) has taken another step to cut into its debt pile, which is now nearly half as much as it was at the end of 2021.
The firm has completed a refinancing package, taking the net debt figure down to $750m, which compares to nearly $1.3bn at the end of 2021 and $880m in June.
EnQuest has secured a $500m reserves-based lending facility, which matures in April 2027 and a new loan of $305m with a five-year repayment period.
The funds have been used to pay off some other short-term debts due in 2023 for the London-listed firm, with the overall impact leading to the drop in net debt.
CEO Amjad Bseuisu said it is an “important milestone” which provides a “runway to deliver” on its upstream production strategy.
Ashley Kelty of Panmure Gordon said the company has “aggressively reduced debt” and this move will “ease any short-term pressure on balance sheet”.
EnQuest shares are up 2.5% at time of writing to 26.5pence.
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