Harbour Energy Plc · LSE:HBR
Harbour Energy — Investor Presentation (November 2024)
33 slides from Harbour Energy's investor presentation, November 2024
Slide 1: Investor presentation
Investor presentation Harbour Energy plc November 2024
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE: THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE BEING SUPPLIED TO YOU FOR YOUR INFORMATION ONLY AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY TO ANY OTHER PERSON. BY ACCESSING THIS DOCUMENT YOU AGREE TO BE B
Slide 3: Overview
Overview A large, geographically diverse independent oil and gas company
Slide 4: 2024 year-to-date highlights
2024 year-to-date highlights Delivering on our strategy – building a global, sustainable independent oil and gas company Transformational acquisition completed ▪ Integration of Wintershall Dea asset portfolio progressing as planned Solid operational delivery ▪ Production guidance narrowed upwards ▪
Slide 5: Harbour Energy at a glance
Harbour Energy at a glance A large, diverse portfolio with robust margins underpinned by significant reserves and resources 2024F production (proforma)1 YE23 2P reserves (proforma)2 kboepd bnboe Norway UK 1.5 Norway Plus, leading CO2 storage (c.60% gas) position in Europe Argentina UK Germany North
Slide 6: M&A is a core part of our strategy
M&A is a core part of our strategy Track record of successfully executing value accretive, large scale and complex M&A and integration projects UK North Sea – $3.0bn UK North Sea – $2.7bn Premier Oil plc – c.$2.8bn Wintershall Dea – $11.2bn Seller: Shell Seller: ConocoPhilips Reverse merger Seller:
Slide 7: Investment case
Investment case A pure play, global independent oil and gas company focused on value creation, cash flow and distributions One of the world’s largest and most geographically diverse independent oil and gas companies High quality, cash flow generative asset base with broad set of growth options Track
Slide 8: Harbour is well-placed amongst long-established global independent O&G companies
Harbour is well-placed amongst long-established global independent O&G companies Harbour represents a unique investment proposition with its scale and geographic diversity H1 2024 Production kboepd1 Norwegian independents Pro forma 500 Harbour UK listed independents US independents Australian indepe
Slide 9: Operational review
Operational review Large scale and diverse portfolio with broad set of growth options
Slide 10: A focus on safe and responsible operations
A focus on safe and responsible operations Consistently strong safety performance; Wintershall Dea acquisition materially reduces Harbour’s GHG intensity Occupational safety Process safety Greenhouse gas emissions intensity2 TRIR (per million hours worked) Number of events kgCO2e/boe Harbour Industr
Slide 11: Production guidance narrowed upwards
Production guidance narrowed upwards Q4 production reflects full contribution from Wintershall Dea portfolio, new wells on-stream and no major shutdowns Production 475-485 kboepd kboepd A sustainable production base >500 ▪ Scale in multiple established O&G basins Guidance ▪ Geographic diversificatio
Slide 12: Competitive cost base with robust margins
Competitive cost base with robust margins 2024 unit operating cost materially reduced, driven by acquisition of high quality, low-cost portfolio 2024F operating cost 2024F operating cost (proforma) $/boe1 $/boe1,3 Guidance SE Asia 19.5 $16-17/boe UK 16-17 Germany 13-14 Mexico Norway Argentina Acquir
Slide 13: Capital programme largely targeted at developing 2P reserves to sustain production
Capital programme largely targeted at developing 2P reserves to sustain production Continued strong capital discipline and enlarged portfolio enables prioritisation of investment opportunities 2024F Total capex, including decommissioning 300 0 $bn $/boe1 30 Norway: Increasing near term production ▪
Slide 14: A large and diverse set of growth options
A large and diverse set of growth options… …underpinning future production and significant reserve replacement YE 2023 2C resources1,2 2C resource: c.800 mmboe2 High value, short cycle bnboe ▪ Significantly de-risked, near-term volumes ▪ Infill drilling programmes N. Afr. ▪ Near field step outs, sat
Slide 15: CCS
CCS Building an advantaged CCS portfolio, anchored by Harbour’s Viking project, with long term cash flow potential Harbour CO2 storage licence interests Proposed CO2 transportation pipeline ▪ Broad, pan European Energy hub portfolio of CO2 transport and storage Norway projects Luna ▪ Long term Green
Slide 16: Financial position and guidance
Financial position and guidance Financial strength and capital discipline
Slide 17: Financial strength underpinned by high quality portfolio and continued capital discipline
Financial strength underpinned by high quality portfolio and continued capital discipline Harbour retains capital allocation optionality for additional returns and further growth Safe, responsible and efficient High quality portfolio Robust risk management operations Material cash flow generation su
Slide 18: Hedging
Hedging Up to completion, Harbour and Wintershall Dea continued to hedge their production in line with their own strategies Hedged oil volumes and prices1 Hedged European gas volumes and prices1 c.$2.6bn kboepd, % Volumes hedged kboepd, % Volumes hedged 90 14 Revenue secured via oil Av. hedged price
Slide 19: Harbour debt structure
Harbour debt structure Harbour’s debt structure has been transformed by unsecured, low cost and flexible bank facilities and bonds Debt structure1 Group liquidity, at 30 Sept 20-24 $bn equivalent2 ▪ Flexible investment grade structure Cash $3bn RCF ▪ 5 year unsecured RCF with no amortisation profile
Slide 20: Net debt
Net debt Forecast 2024 free cash flow of $300m before dividend & one-off acquisition costs; pro forma equivalent of $1.1bn Net debt as at 30 September $ billion1 Forecast YE 2024 net debt to be of a similar level to end of Sept. with significant tax payments due in Q4 1. 1.4 1.7 ▪ Reflects est. 2024
Slide 21: Delivering competitive and sustainable shareholder returns
Delivering competitive and sustainable shareholder returns High quality portfolio, free cash flow accretion and investment grade credit supports enhanced shareholder returns Harbour annual dividend1 Increased scale and geographical diversification ($m) 480 Ordinary 475 470 465 460 shares c.$455m 455
Slide 22: Guidance: 2024 production and unit opex materially enhanced by completion of the acquisition
Guidance: 2024 production and unit opex materially enhanced by completion of the acquisition Production guidance narrowed upwards following completion of planned shutdowns and new wells on stream Current Guidance FY 2024F FY 2024F Year to end Sept FY 2024F FY 2024F (As at Jan. 2024) (As at Sept. 202
Slide 23: Outlook and priorities
Outlook and priorities Well positioned for value creation
Slide 24: Building a global, diversified oil and gas company via disciplined M&A
Building a global, diversified oil and gas company via disciplined M&A Well-positioned for continued value creation, enhanced shareholder returns and further growth opportunities Priorities 475-485 kboepd Maximise the value of our production base responsibly Progress growth opportunities, including
Slide 25: Appendix
Appendix Asset portfolio: country summaries
Slide 26: Norway
Norway High quality, diverse asset base with significant near field opportunity set and an impressive exploration success rate ▪ Diversified asset base; multiple export H1 2024 production Partnered with well-established operators routes into European gas markets kboepd Maria Other Snorre ▪ High oper
Slide 27: UK
UK Large scale, diverse asset base with high degree of operational control Operated ▪ Diversified asset base with a balance H1 2024 production Operated Clair Non-operated of oil and gas kboepd West of Non-operated Schiehallion Shetland Solan GBA ▪ Strong safety and operating record Beryl Beryl ▪ Sca
Slide 28: Germany
Germany Sustainable, cash generative business with long reserve life and low emissions ▪ One of the largest oil and gas producers H1 2024 production in Germany kboepd Other ▪ Sustaining production at c.30 kboepd Mittelplate Mittelplatte ▪ Focus on optimisation, efficiency and Emlichheim GHG emission
Slide 29: Argentina
Argentina Long life production with potential for material growth, including via the scalable Vaca Muerta unconventional play ▪ Active in Argentina since 1978 H1 2024 production ▪ One of the country’s largest gas producers kboepd >45 years San Roque active in Argentina ▪ Long term, competent operato
Slide 30: Mexico
Mexico Material interests in large offshore oil fields provides significant optionality for growth ▪ Built position in Mexico organically and via Kan Hokchi H1 2024 production acquisition, most recently Hokchi in March kboepd 2023 Ogarrio ▪ Harbour has the largest reserve and resource base after Pem
Slide 31: North Africa
North Africa A focus on production and cost optimisation, reserve additions and infrastructure-led exploration ▪ Long and established history H1 2024 production YE 2023 2P reserves and 2C resources kboepd mmboe4 ▪ Trusted partner with strong stakeholder Al Jurf relationships 2P Reggane 69 12 ▪ Criti
Slide 32: SE Asia: Indonesia and Vietnam
SE Asia: Indonesia and Vietnam Material organic growth opportunities in supportive country with strong working relationships ▪ Active in Indonesia since 1996 Operated Non-operated ▪ High degree of operational control Vietnam ▪ Significant growth opportunities 12W Chim Sáo Andaman II ▪ Strong stakeho
Slide 33: i Harbour
i Harbour mmm Energy
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