Harbour Energy (HBR) Barclays 40th Annual Energy-Power Conference summary

Strategic evolution and portfolio diversification

• Evolved from a U.S.-based private company to a global independent with 509,000 bpd production, supported by acquisitions over 10 years and portfolio diversification.

• Maintains a balanced portfolio: 40% oil, 40% European gas, and 20% other domestic gas across five core countries (Norway, U.K., U.S., Mexico, Argentina), with tailored growth and efficiency strategies.

• Recent LLOG (U.S.) and Waldorf (U.K.) acquisitions provided oil-weighted assets, operational control, and lower tax exposure, while divestment of non-core Indonesian assets streamlined the portfolio.

• Achieved investment-grade balance sheet via Wintershall Dea transaction, enabling robust shareholder distribution policy and maintaining investment grade credit ratings.

• Prioritized safety, environmental performance, and a shift toward lower-cost, lower-tax basins, enhancing resilience and longevity.

Operational performance and financial outlook

• Operational reliability and efficiency led to upgraded 2023 production guidance to 490,000–500,000 bpd, with 2026 guidance reaffirmed at 490–500 kboepd.

• Record free cash flow of $1.8 billion in H1 2026, with guidance for 2023 raised from $600 million to $1.8 billion mid-year and potential to reach $2.3 billion based on commodity prices.

• Plans to distribute 45–75% of free cash flow to shareholders, with at least $800 million in 2026 distributions and a minimum $300 million dividend plus $250 million buyback.

• Net debt at mid-year was $5.4 billion, with leverage at 0.7x post-LLOG acquisition and $1.1–$1.3 billion targeted for debt repayment in 2023.

• Maintained robust liquidity of $4.1 billion and successfully refinanced $3 billion RCF to 2031.

Regional highlights and growth catalysts

• Norway: Increased production to 180 kboepd, accelerated project delivery, ongoing tie-backs, and six FIDs targeted in 2026.

• U.K.: Waldorf acquisition added 14 kboepd and 25 mmboe 2P reserves, with ongoing cost optimization and operational control amid fiscal regime challenges.

• U.S. Gulf: Expanding with a second rig, new exploration well (King's Road), and >20% production CAGR to 2030, supported by a deep inventory of high-return projects.

• Argentina: Nine new gas wells online, SESA LNG project to start up end 2027, San Roque oil development targeted for 2027, and significant upside from Vaca Muerta.

• Mexico: Zama and Kan projects progressing toward FID by late 2027, with combined reserves of 350 MMbbl and strong local partnerships.