Harbour Energy
plc
("Harbour")
Trading and Operations
Update
7 November
2024
Harbour Energy today provides the
following unaudited Trading and Operations Update for the nine
months to 30 September 2024.
Actuals to 30 September 2024 reflect
the completion of the Wintershall Dea acquisition on 3 September
2024 and include approximately one month's contribution from the
acquired portfolio. 2024 guidance includes approximately four
months' contribution from the Wintershall Dea portfolio.
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Operational highlights
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§ Transformational Wintershall Dea portfolio acquisition
completed ahead of schedule; integration progressing as
planned
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§ A
continued focus on safety with a total recordable injury rate of
0.96 per million hours worked (2023: 0.89)
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§ Average
production of 177 thousand barrels of oil equivalent per day
(kboepd) to end September (2023: 189 kboepd). Full year 2024
guidance narrowed upwards to 255-265 kboepd (250-265 kboepd
previously)
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Production start-up from the Fenix gas project
(Argentina) in September, ahead of plan
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New wells on-stream in Q3, including at Njord
(Norway), Armada (UK) and Greater Britannia Area (UK)
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October production averaged 503 kboepd following
completion of Norway and UK planned maintenance
shutdowns
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§ Operating
costs averaged $19.5/barrel of oil equivalent (boe) for the period
(2023: $16/boe). 2024 guidance of $16-17/boe is reiterated,
reflecting the addition of the lower cost Wintershall Dea portfolio
and expected higher production in Q4
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§ High
return, short cycle investments on track, including Talbot (UK)
first oil anticipated around year end, Maria Phase 2 (Norway)
production start-up expected in 2025, and a multi-pad drilling
campaign underway at APE Vaca Muerta (Argentina)
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§ Growth
opportunities advanced, underpinning future reserves replacement
and portfolio longevity
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Norway: Successful appraisal of
the Storjo gas discovery and appraisal drilling underway at the
Harbour-operated Sabina discovery, both potential subsea tie-backs
to the Skarv FPSO
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UK: Oil discovery at Gilderoy,
close to Harbour-operated Greater Britannia
infrastructure
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Mexico: Zama FEED progressing;
appraisal drilling ongoing at Harbour-operated Kan
discovery
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Indonesia: Multi-well
exploration and appraisal campaign completed at Andaman, confirming
the potential of the play; additional Harbour-operated licence
secured with the award of Central Andaman
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European
CCS: Assessment of our enlarged
CO2 transportation and storage portfolio underway, with
a focus on building a competitive business with long-term cash flow
potential
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Financial highlights
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§ Estimated
revenue to end of September of $3.1 billion, with realised
post-hedging oil, European and non-European gas prices of $82/bbl,
$9/mscf and $6/mscf respectively
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§ Total
capital expenditure to end of September of c.$1.0 billion. Full
year 2024 guidance revised to c.$1.8 billion from c.$1.7 billion.
This reflects phasing of spend between pre- and post-completion of
the Wintershall Dea acquisition versus that estimated at the time
of completion. Proforma total capital expenditure for 2024
unchanged at c.$2.7 billion.
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§ Estimated
net debt of $4.7 billion at 30 September. Year-end net debt
expected to be of a similar level, based on an estimated c.$250
million negative working capital movement and current commodity
price outlook
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Estimated full year 2024 free cash flow of c.$300
million, excluding shareholder distributions and one-off
acquisition-related costs. Equivalent proforma free cash flow
estimated at $1.1 billion
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2024 one off acquisition-related costs, including
change of control payments for seismic data, totalling c.$250
million
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§ Interim
dividend of c.$100 million paid in September, in line with
Harbour's prior $200 million annual dividend policy. As previously
guided, annual dividend increased to $455 million (comprising $380
million for ordinary shares, $75 million for non-voting shares) to
be paid in two equal instalments, starting with a final dividend
for 2024 to be paid in May 2025, subject to shareholder
approval
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§ Successful
issuance of €1.6 billion of senior bonds (completed October)
enabling repayment and cancellation of the $1.5 billion bridge
facility utilised for the Wintershall Dea portfolio
acquisition
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§ Corporate
and senior unsecured issue credit ratings upgraded to investment
grade Baa2, BBB- and BBB- from Moody's, S&P and Fitch,
respectively
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Upcoming events
Harbour's next scheduled market
update will be in January 2025 when the Company will issue a
Trading & Operations update. In addition, Harbour plans to host
a capital markets event in the first half of 2025.
Linda Z Cook, Chief Executive Officer,
commented:
"We continued to deliver on our
strategy through the completion of the Wintershall Dea acquisition
and strong operational and financial performance.
"Our expanded global portfolio is
performing well, achieving production rates of over half a million
barrels per day in October, generating material cash flow and
presenting multiple high return organic investment opportunities.
These, together with our strong team, disciplined capital
allocation and investment grade credit ratings, mean we are
well-positioned for the future."
Enquiries
Harbour Energy plc
+44 (0) 203 833 2421
Elizabeth Brooks, SVP Investor
Relations
Andy Norman, SVP
Communications
Brunswick (PR
advisors)
+44 (0) 207 404 5959
Patrick Handley
Will Medvei
Appendix:
Hedging schedule
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2025
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2026
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2027
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Volume
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Average
Price
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Volume
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Average
Price
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Volume
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Average
Price
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mmboe
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$/mscf
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mmboe
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$/mscf
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mmboe
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$/mscf
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Europe gas
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31
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13
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17
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10
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2
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10
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mmbbl
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$/bbl
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mmbbl
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$/bbl
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mmbbl
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$/bbl
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Oil
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16
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76
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12
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73
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0
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-
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Group production
Production to end September includes
approximately one month's contribution from the Wintershall Dea
portfolio.
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1 Jan 2024 - 30 Sept
2024
(net,
kboepd)
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UK
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142
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Norway
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10
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Germany
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3
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Argentina
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7
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Mexico
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1
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MENA
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4
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SE
Asia
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11
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Total Group
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1771
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1 Owing to rounding, the above
total does not match the sum of the component
parts