Harbour Energy (HBR) Trading Update summary

Strategic and operational highlights

• Completed Wintershall Dea acquisition, boosting scale, geographic reach, and resource base.

• 2024 production averaged 258 kboepd, up ~40%, with proforma at 479 kboepd; diversified across liquids and gas.

• Successful project start-ups in Argentina, UK, and Norway; all six North Sea exploration wells yielded positive results.

• Expanded 2P reserves and 2C resources; advanced key growth projects in Mexico and Argentina.

• CCS portfolio actively managed; FID reached for Denmark's Greensand Future project.

Financial performance

• Revenue rose to ~$6.1bn (2023: $3.7bn) and EBITDAX to ~$4.1bn (2023: $2.7bn), driven by higher production.

• Net debt at $4.7bn; debt structure improved with new unsecured, lower-cost facilities and investment grade ratings.

• Capital expenditure at ~$1.8bn, including $0.3bn decommissioning; in line with guidance.

• Free cash flow broadly neutral, excluding acquisition costs; $0.2bn distributed to shareholders in 2024.

2025 outlook and guidance

• 2025 production guidance: 450–475 kboepd, reflecting full-year Wintershall Dea contribution.

• Unit operating costs expected to fall to ~$14/boe; capex to rise to $2.4–2.6bn, offset by reduced UK and exploration spend.

• Estimated 2025 free cash flow of ~$1bn at $80/bbl Brent and $13/mscf European gas.

• Dividend policy increased: $455m total dividends expected, split between 2024 final and 2025 interim.

• Continued hedging for oil and gas through 2027; Vietnam business sale agreed post-period.