Harbour Energy (HBR) investor relations material

Executive summary

• Achieved record production of 509 kboepd in H1 2026, up 4% year-over-year, driven by acquisitions and strong operational execution, with the portfolio now centered on five core countries and increasingly weighted toward lower cost, lower tax basins.

• Completed strategic acquisitions of LLOG (US) and Waldorf (UK), and divested high-cost, non-core Indonesian assets, further strengthening and simplifying the portfolio.

• Free cash flow increased to $1.8 billion, enabling accelerated debt reduction and a new $250 million share buyback program, with interim dividend maintained.

• Portfolio transformation and disciplined capital allocation enabled robust shareholder returns and enhanced future growth outlook.

Financial highlights

• Revenue rose to $6.4 billion (up over 20% from $5.3 billion in H1 2025), with adjusted EBITDAX at $4.5 billion.

• Adjusted after-tax profit rose 37% to $562 million, with adjusted EPS up 27% to $0.28 per share compared to H1 2025.

• Free cash flow increased to $1.8 billion (up from $1.4 billion), supporting accelerated debt reduction and shareholder distributions.

• Net debt at period end was $5.2 billion, with leverage at 0.7x, below the target of less than 1x.

• Interim dividend of $150 million and $250 million share buyback announced, representing a 22% increase in shareholder distributions year-over-year.

Outlook and guidance

• Full-year 2026 production guidance raised to 490–500 kboepd, with July production at 510 kboepd.

• Free cash flow outlook for 2026 increased to $1.8–$1.86 billion, assuming Brent at $85/bbl and European gas at $15/mscf.

• CapEx guidance for 2026 maintained at $2.2–$2.4 billion, with stable OpEx guidance.

• Minimum $800 million to be returned to shareholders in 2026, including at least $500 million above the annual dividend.

• From 2027, annual CapEx expected at $2–2.3 billion to sustain production between 475,000 and 500,000 bbl/day through the decade.