Business
2021 Capital Markets Day
2021 Capital Markets Day.
About this update from Harbour Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0551V\n Harbour Energy PLC\n 09 December 2021\n \n \n \n Harbour Energy plc\n \"Harbour\"\n 2021 Capital Markets Day\n 9 December 2021\n \n Harbour Energy plc, the global independent oil and gas company, will host its first Capital Markets Day today at midday GMT.\n \n The presentation will provide more detail around Harbour's strategy, the strength of its asset base, the cash flow potential of the business and its capital allocation plans. Details include its forward investment programme, path to Net Zero by 2035 and the introduction of a $200 million annual dividend policy. \n \n Today Harbour also provides a 2021 performance update, 2022 guidance and its medium-term outlook.\n \n 2021 Performance Update[1]\n \n \n \n \n § Production of 215 kboepd in October / November; full year forecast of 175 kboepd, in line with guidance (170-180 kboepd)\n \n \n \n \n § Forecast unit operating cost of c.$16/boe and total capital expenditure of c.$1bn, including decommissioning\n \n \n \n \n § Tolmount (UK) project start-up expected Q1 2022 at net rates of 20 kboepd; reserves anticipated to be downgraded reflecting drilling results; Tolmount East sanctioned\n \n \n \n \n § Successful drilling at J-Area, Elgin Franklin, Everest and Beryl in the UK, and Natuna Sea Block A and Tuna in Indonesia, supporting future production\n \n \n \n \n § Alignment of the portfolio with Harbour's strategy, including exits from Brazil exploration acreage and the Sea Lion project in the Falkland Islands\n \n \n \n \n § Net Zero 2035 activities include emissions reduction actions, progress on UK offshore electrification and CCS studies, and offsetting c.20% of 2021 emissions\n \n \n \n \n § Integration on track, material synergies expected to be realised\n \n \n \n \n § Debut $500m bond issuance completed in October with a coupon of 5.5%; forecast year end net debt of $2.3-2.4bn excluding unamortised fees and leverage of 1.0x, reflecting $500-600m of free cash flow generation for the year\n \n \n \n \n § Introduction of a dividend policy of $200m (16 pence/share2) annually to be paid in two equal instalments, starting with a final dividend of $100m (8 pence/share2) for 2021 to be paid in May 2022 following shareholder approval\n \n 2022 G...