An inquest into EnQuest

The upside from a rising oil price (and downside from falls) tend to be most acutely felt by heavily indebted producers. While this means highly geared North Sea explorer-producer EnQuest (ENQ) could hold some attraction for die-hard oil bulls, we feel the risks outweigh the potential rewards. We think there are better homes for investors hoping to benefit from a spike in oil price than an operator with one of the shakiest track records in an already shaky pack. Put simply, we think the chances are too high that EnQuest shareholders could have more to lose in the year ahead.