Harbour Energy Plc · LSE:HBR

Harbour Energy — Investor Presentation (August 2021)

20 slides from Harbour Energy's investor presentation, August 2021

  1. Slide 1: Investor Presentation August 2021

    Investor Presentation August 2021

  2. Slide 2: Harbour Energy

    HARBOUR ENERGY Active in 2P + 2C 7 Countries 1,691 mmboe1 Norway A global > 1,800 independent Production Employees O&G company c.200 kboepd UK Operating cost Net Zero by 2035 c.$15/boe Vietnam Mexico Brazil Indonesia Expectation of a 2021 FCF breakeven dividend near-term $30-35/boe2 Falkland Islands

  3. Slide 3: Highlights

    HIGHLIGHTS  Merger completed 31 March; integration on track 2021 proforma production (excluding Tolmount volumes)  2021 forecast of 185-195 kboepd, reflecting planned maintenance and kboepd unplanned outages and excludes Tolmount volumes 250  Near field development and drilling programmes ramping

  4. Slide 4: An Institutional Share Register

    AN INSTITUTIONAL SHARE REGISTER  Largest UK listed independent oil and gas company  Listed on the premium segment of the LSE under the ticker HBR  Share register dominated by global investors, sovereign wealth funds, pension funds and other asset managers  Member of FTSE All Share, FTSE 250 cons

  5. Slide 5: A New Unique Investment Opportunity

    A NEW UNIQUE INVESTMENT OPPORTUNITY Today’s investment choices more limited than in the past 2015: Large universe of global, diversified oil and gas companies of scale Major oil companies Shifted focus to US: 2020 Production in U.S. 60% 55% 68% Independent oil and gas companies 80% Single country /

  6. Slide 6: A Global Diversified Independent with Full Cycle Capabilities

    A GLOBAL DIVERSIFIED INDEPENDENT WITH FULL CYCLE CAPABILITIES SCALE HIGH QUALITY UK PORTFOLIO INTERNATIONAL GROWTH  Largest UK listed independent O&G  High margin, cash generative asset base  Embedded organic investment options company  High degree of operational control  Track record of large-

  7. Slide 7: UK: A Business of Scale Generating Material Cash Flows

    UK: A BUSINESS OF SCALE GENERATING MATERIAL CASH FLOWS UK 2P reserves1  Production of 163 kboepd to end June Operated Schiehallion AELE Hub Non-operated  Planned significant maintenance Elgin/Franklin programmes completed  Drilling activity ramping up Clair  Tolmount first gas expected around 56

  8. Slide 8: Operator of Key Hubs with Material Upside

    OPERATOR OF KEY HUBS WITH MATERIAL UPSIDE J-Area (67-67.5%) GBA (26%-87.5%)  27 kboepd (net) to end of June  28 kboepd (net) to end of June  Active multi-year drilling and  High operating efficiency workover programme  Additional volumes from  2nd rig arrived and drilling the Callanish F5 well

  9. Slide 9: Tolmount First Gas Expected Around the End of Year

    TOLMOUNT FIRST GAS EXPECTED AROUND THE END OF YEAR New operated hub in Southern North Sea Long life field Low GHG emissions Quick payback 8 HBR Investor Presentation| August 2021

  10. Slide 10: Non-Operated Portfolio, High Quality Long Life Assets

    NON-OPERATED PORTFOLIO, HIGH QUALITY LONG LIFE ASSETS Elgin-Franklin (19.3%) Beryl (34-49%)  17 kboepd (net) to end of June  13 kboepd (net) to end of June  Production impacted by an  Feasibilty studies underway for unplanned shutdown in the the potential development of GAEL pipeline and a delay

  11. Slide 11: Case Study: Shell Asset Acquisition – A Track Record in Creating Value

    CASE STUDY: SHELL ASSET ACQUISITION – A TRACK RECORD IN CREATING VALUE Key transaction metrics1 Reserve diversification1 CPR 2P Reserves mmboe mmboe  Effective date: 1 July 2016  Acquisition price: $3.0 bn Schie- hallion J-Area  CPR1 2P reserves: 305 mmboe Beryl 169 153 – Oil / gas split: 58% / 4

  12. Slide 12: Path to Net Zero by 2035

    PATH TO NET ZERO BY 2035 1. Minimise Emissions Investment in Carbon Capture Usage & Storage (CCUS)  Measure, manage and Acorn CCS & Hydrogen Project, St Fergus, Scotland minimise emissions  Industry partnership, led by Pale  Improve plant operational Blue Dot Energy efficiency and minimise all 

  13. Slide 13: International: A Platform for Future Growth

    INTERNATIONAL: A PLATFORM FOR FUTURE GROWTH  Ability to pursue a fully funded growth strategy c.1.7 bn boe1,2  Broad set of organic growth options Combined Group 2P & 2C  A growing international M&A opportunity set Norway – Track record of executing complex M&A transactions and adding value to th

  14. Slide 14: International: Diverse Portfolio of Growth Projects

    INTERNATIONAL: DIVERSE PORTFOLIO OF GROWTH PROJECTS Indonesia (28.7%-50%) Vietnam (53.1%)  12 kboepd (net) to end of June  6 kboepd (net) to end of June  Strong Singapore demand for  High uptime NSBA gas, above TOP levels  Ongoing well intervention  2-well appraisal campaign on programme 100 m

  15. Slide 15: Strong Financial Position

    STRONG FINANCIAL POSITION Net debt Liquidity  Net debt1 reduced to $2.7bn at end $m of May  Significant liquidity of c.$1bn 3,000 Shell  No near-term debt maturities  Low average cost of debt <5% 2,000  Annual redetermination of RBL facility with availability set at 1,000 $3.3bn, supported by a

  16. Slide 16: Capital Allocation

    CAPITAL ALLOCATION 1 Balance sheet strength  Targeting conservative leverage profile through the cycle  Potential for an investment grade credit rating 2 Ensuring a robust and diverse UK North Sea: J-Area Platform (Jasmine) portfolio of production, reserves and resources  Invest in the UK to main

  17. Slide 17: 2021 Guidance

    2021 GUIDANCE Total capex (P&D, E&A and abex (pre-tax)) $m Actual Original guidance Current guidance (year to end May) (FY 2021) (FY 2021) 1000 Proforma 197 200-215 185-195 production1 kboepd kboepd kboepd Reported 162 185-200 170-180 0 production2 kboepd kboepd kboepd YTD (end May 21) 2021 FYF Capi

  18. Slide 18: H2 2021 Outlook

    H2 2021 OUTLOOK  Improved uptime and production with completion  V Net Zero and Acorn CCS project submissions to of maintenance programmes UK government  Ramp up of rig activity, both in the North Sea and  Realisation of merger synergies South East Asia  Strong positive free cash flow  Tolmoun

  19. Slide 19: 2021 Priorities

    2021 PRIORITIES Maintain safe and responsible operations  Focus on health and safety of our people  Minimise carbon footprint  Production of c. 190 kboepd Successfully integrate the two businesses  Maintain low cost base  Deliver cost and tax synergies  Generate material free cash flow Deliver

  20. Slide 20: Harbour Energy

    ae Harbour gem Energy

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