Harbour Energy (HBR) Trading Update summary

Operational performance

• Completed Wintershall Dea acquisition ahead of schedule, with integration progressing as planned.

• Average production to September was 177 kboepd; full-year guidance raised to 255-265 kboepd.

• October production reached 503 kboepd after maintenance shutdowns.

• Operating costs averaged $19.5/boe; full-year guidance remains $16-17/boe due to lower-cost portfolio addition.

• New wells and project start-ups in Argentina, Norway, and the UK support production growth.

Financial performance

• Estimated revenue to September was $3.1 billion, with realised oil price at $82/bbl.

• Capital expenditure to September was ~$1.0 billion; full-year guidance revised to ~$1.8 billion.

• Net debt at 30 September was $4.7 billion; year-end net debt expected to be similar.

• Estimated 2024 free cash flow is ~$300 million, with proforma free cash flow at $1.1 billion.

• Interim dividend of ~$100 million paid; annual dividend increased to $455 million, to be paid in two instalments.

Strategic and growth initiatives

• High-return, short-cycle investments on track, including Talbot (UK) and Maria Phase 2 (Norway).

• Successful appraisal and exploration activities in Norway, UK, Mexico, and Indonesia.

• European CCS portfolio assessment underway, targeting long-term cash flow.

• Issued €1.6 billion in senior bonds, repaying $1.5 billion bridge facility for the acquisition.

• Credit ratings upgraded to investment grade by Moody's, S&P, and Fitch.