Business
Trading and Operations Update
Harbour Energy reported strong 2025 performance with production reaching 474 kboepd, an 84% increase driven by the Wintershall Dea acquisition, and unit operating costs reduced by approximately 20% to $13.0/boe. The company generated $1.1 billion in free cash flow, exceeding expectations, and reduced net debt to $4.4 billion. Strategic progress included advancing key development projects in Mexico and Argentina, and announcing significant transactions: the divestment of Indonesian assets for $215 million, the acquisition of Waldorf in the UK for $170 million, and the $3.2 billion acquisition of LLOG Exploration in the US, expected to be accretive to free cash flow per share from 2027. For 2026, production is guided at 435-455 kboepd with capital expenditure of $1.7-1.9 billion, and a free cash flow outlook of approximately $0.6 billion at $65/bbl Brent and $11/mscf European gas. Disclaimer*
About this update from Harbour Energy Plc
[{"type":"text","content":"\n\nHarbour Energy plc\n(\"Harbour\")\nTrading and Operations Update\n22 January 2026\n \nHarbour Energy today provides the following unaudited Trading and Operations Update for the year ended 31 December 2025, ahead of announcing its Full Year Results on 5 March 2026.\n \nLinda Z Cook, Chief Executive Officer, commented:\n\"2025 was another year of strong delivery, driven by excellent operational performance, strict capital discipline and the successful integration of new assets. This drove production to the top end of guidance and stronger than anticipated free cash flow generation, despite softer commodity prices.\nWe materially advanced our strategy during the year. This included improving our cost structure in the UK, building momentum at our key development projects in Mexico and Argentina, and announcing the divestment of non-core assets and disciplined M&A. Collectively these activities will enhance our portfolio and materially increase our future free cash flow.\nLooking to 2026, our priorities include delivering another year of outstanding operational performance, continuing to mature our organic growth opportunities, strengthening the balance sheet and completing the announced transactions, all of which position us better for the future.\" \n \n\n\n\n\nStrong operational delivery\n\n\n\n\n§ Production averaged 474 kboepd (2024: 258 kboepd), up 84% and at the top end of guidance, driven by a full year contribution from Wintershall Dea and excellent operational execution\n\n\n\n\n§ Production was split approximately 40% liquids, 40% European gas and 20% other gas\n\n\n\n\n§ Unit operating costs averaged $13.0/boe (2024: $16.5/boe), a c.20% reduction and lower than guidance. This reflects the addition of the Wintershall Dea assets, strong volumes and cost performance together with the divestment of Vietnam more than offsetting FX headwinds\n\n\n\n\n§ Total recordable injury rate (TRIR) of 1.1 per million hours worked (2024: 1.0)\n\n\n\n\n§ Net equity greenhouse gas intensity materially reduced to 14 kgCO2/boe (2024: 19 kgCO2/boe)\n\n\n\n\n§ High return, short cycle investments progressed, supporting near term production:\n\n\n\n\n- Development wells onstream in Norway, the UK, Argentina, Germany and Egypt\n\n\n\n\n- Fenix (Argentina) and Maria Phase...