EL7.AI
StocksMedium•21 October 2026•
4 min read

EnQuest joins FTSE 350 after Peel's stake in Harworth exceeds 75%

Key Facts

1The FTSE 350 index change took effect on 20 October 2026.
2Harworth's removal followed Peel Holdings' offer becoming unconditional and its ownership exceeding 75%.
3The proposed maximum aggregate value of EnQuest's Malaysian acquisitions is $833 million.
4Underlying adjusted free cash flow reached $71.3 million in the first half, up 118% year on year.

EnQuest joined Britain's FTSE 350 index in a change FTSE Russell set to take effect on 20 October 2026, reported by S&P Capital IQ via MarketScreener. The change was linked to the removal of Harworth after Peel Holdings' cash offer became unconditional and its ownership exceeded 75%, according to a FTSE Russell notice. The FTSE 350 combines the companies in the FTSE 100 and FTSE 250 indices, according to London Stock Exchange Group. Asset owners, investment managers, exchange-traded fund providers and investment banks use FTSE Russell indices as benchmarks to measure investment performance, according to the group. EnQuest's inclusion in the index coincides with its pursuit of proposed Malaysian acquisitions with a maximum aggregate value of $833 million.

EnQuest's results for the first half of 2026 showed improved cash flow and narrower losses compared with the same period a year earlier, according to the company's statement. Underlying adjusted free cash flow totalled $71.3 million, up 118% year on year, according to the reported results. Cash generated from operations reached $281.4 million in the first half, up 31% year on year. The company posted a loss after tax of $39.9 million in the same period of 2026. The loss after tax was $173.5 million in the first half of 2025, according to the comparison in the results statement.

On operations, EnQuest's average production rose to 41,544 barrels of oil equivalent per day in the first half of 2026, according to the company. The comparable average was 38,257 barrels of oil equivalent per day in the first half of 2025, according to the results statement. The company said new fields in Southeast Asia performed strongly during the period. However, disruption to third-party infrastructure constrained production at the Magnus field, partially offsetting that performance, according to the statement. Following the operational disruption at Magnus, EnQuest narrowed its annual production guidance for 2026 to between 41 and 43 thousand barrels of oil equivalent per day.

Detailing the consideration for the Malaysian acquisitions, EnQuest said $554 million was payable on completion. The company plans to use existing debt facilities to fund the acquisition consideration, according to the deal announcement. The funding plan also includes its cash resources, which the company listed alongside those facilities. On the regulatory front, EnQuest said the proposed acquisitions, when completed together, would constitute a reverse takeover under UK listing rules. Shareholders approved the resolution relating to the acquisitions, with the company saying in its general meeting results announcement that it "was approved by the requisite majority of shareholders".

EnQuest estimated production for the enlarged group at more than 100 thousand barrels of oil equivalent per day, based on 2025 production and assuming the inclusion of the target assets. That represents an increase of 134% compared with EnQuest's standalone production in the same year, according to the calculation the company presented for the deal. Southeast Asia's contribution rises to 69% of the enlarged group's production on this pro forma basis. EnQuest said in its presentation that "Southeast Asia's contribution increases to 69%". This distribution places most of the enlarged group's production in the region, according to the company's estimates based on the historical production of the assets involved.

EnQuest announced that the conditions precedent to completion of the Malaysian acquisitions had been met, saying "all conditions precedent to completion of the proposed acquisitions have been satisfied in full". The company expects to complete the acquisitions on 31 December 2026, according to its announcement on the satisfaction of conditions. It set 1 January 2027 as the acquisitions' economic effective date, the day after expected completion. As part of the transaction process, EnQuest expected its shares to be readmitted to the Official List and the London Stock Exchange's Main Market. It said in its general meeting results announcement that readmission was expected on or around 4 January 2027.