Harbour Energy Plc · LSE:HBR
Harbour Energy — Merger or Acquisition (December 2023)
19 slides from Harbour Energy's merger presentation, December 2023
Slide 1: Harbour Energy's acquisition of Wintershall Dea asset portfolio
Harbour Energy’s acquisition of Wintershall Dea asset portfolio December 2023
Slide 2: Today's presenters
Today’s presenters LINDA Z. COOK ALEXANDER KRANE CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Harbour Harbour ▪ Extensive CEO experience building and managing large-scale, ▪ Extensive public company CFO experience global energy businesses at Shell and EIG/Harbour ▪ Significant experience leading
Slide 3: A transformational step in our journey
Harbour’s acquisition of Wintershall Dea asset portfolio A transformational step in our journey Scale and High quality, resilient Supporting the energy Financial strength, diversification asset base transition sustainable returns Harbour Energy | Acquisition of Wintershall Dea Asset Portfolio
Slide 4: Overview of acquisition: A compelling transaction for Harbour
Overview of acquisition: A compelling transaction for Harbour Acquisition of substantially all Wintershall Dea’s upstream assets for $11.2 bn (effective date 30 June 2023) Expected to deliver Wintershall Dea’s upstream assets in Norway, Investment Grade Acquisition Funding structure credit profile G
Slide 5: Overview of assets being acquired: An advantaged upstream portfolio
Overview of assets being acquired: An advantaged upstream portfolio A large, Norway dominated, gas- weighted portfolio with robust margins and low emissions Norway Denmark H1 2023 production YE 2022 2P reserves Germany kboepd mmboe Egypt Egypt Algeria Egypt Algeria Mexico Norway Norway Algeria Libya
Slide 6: Acquisition expected to be accretive across all key metrics
Acquisition of Wintershall Dea asset portfolio is expected to be accretive across all key metrics… …underpinning expected investment grade credit ratings and sustainable, enhanced shareholder returns H1 2023 production YE 2022 2P Reserves Annual dividend kboepd/share1 mmboe/share1 Cents/ordinary sha
Slide 7: Acquisition in line with Harbour's stated strategy
Acquisition of Wintershall Dea asset portfolio is in line with Harbour’s stated strategy Building a large, geographically diverse O&G company via disciplined M&A ▪ Ensure safe, reliable and environmentally responsible operations >500 Opex1 kboepd ▪ Maintain a high-quality portfolio of reserves and r
Slide 8: Compelling strategic and financial rationale
Acquisition of Wintershall Dea asset portfolio: Compelling strategic and financial rationale Transforms Harbour into a large, geographically diverse O&G company while maintaining financial strength 1 ▪ Production >500 kboed1; 2P reserves 1.5 bnboe2 Scale and ▪ Geographic diversification, OECD weight
Slide 9: Scale and geographic diversification, material positions in established O&G basins
1 Scale and geographic diversification, material positions in established O&G basins Material production in the UK, Norway and Argentina, plus growth opportunities in Norway, Mexico, and Indonesia YE 2022 2P Reserves1 YE 2022 2C Resources1 bnboe bnboe Norway 7 8 8 6 4 1 UK 7 Denmark 1 Germany 5 Mexi
Slide 10: Acquisition of high quality and resilient portfolio in line with M&A criteria
2 Acquisition of high quality and resilient portfolio in line with Harbour’s stated M&A criteria The acquisition is accretive to Harbour across key operational metrics H1 2023 Operating costs1 YE 2022 2P Reserve life2 YE 2022 2C Resources3 $/boe Years bnboe >25% >30% >200% 15 1.5 8 11 6 0.5 Harbour
Slide 11: Acquisition supports our net zero and energy transition goals
3 Acquisition supports our net zero and energy transition goals Producing oil and gas responsibly and deploying our skills and infrastructure to accelerate CCS A shift towards natural gas Attractive NW Europe CCS portfolio with potential to provide % of YE 2022 2P reserves and 2C resources which is
Slide 12: Transaction expected to transform Harbour's corporate financing model
4 Transaction expected to transform Harbour’s corporate financing model into… …a lower cost and more flexible structure through porting of bonds and expected IG credit ratings Funding structure Significant A new $3.0 bn unsecured RCF with an LC sublimit of $1.75 bn financing ▪ Fully underwritten 5-y
Slide 13: An enhanced, sustainable, shareholder distribution framework
4 An enhanced, sustainable, shareholder distribution framework High quality portfolio, free cash flow accretion and new capital structure support a sustainable increase in the dividend Harbour shareholder distributions1 Potential for Increased scale and geographical diversification ($ million) addit
Slide 14: Financial strength underpinned by high quality portfolio and 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 15: Timeline
Timeline Acquisition Prospectus and Shareholder Regulator and Targeted announced circular published meetings government approvals completion Q4 2023 H1 2024 H1 2024 Q1-Q4 2024 Q4 2024 Harbour Energy | Acquisition of Wintershall Dea Asset Portfolio 14
Slide 16: Harbour to be well-placed amongst global independent O&G companies
Harbour to be well-placed amongst long-established global independent O&G companies Acquisition transforms Harbour into a large-scale, global independent with a new peer group Production H1 2023 Working interest, kboepd1 Norwegian independents Pro forma UK listed independents Harbour US independents
Slide 17: A transformational step in our journey
Harbour acquisition of Wintershall Dea asset portfolio A transformational step in our journey Scale and High quality, resilient Supporting the energy Financial strength, diversification asset base transition sustainable returns Harbour Energy | Acquisition of Wintershall Dea Asset Portfolio
Slide 18: Disclaimer
Disclaimer THIS PRESENTATION, ITS CONTENTS AND ANY INFORMATION PROVIDED OR COMMUNICATED DURING ANY PRESENTATION OR DELIVERY OF THIS PRESENTATION ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, NEW ZEALAN
Slide 19: o_ Harbour
o_ Harbour mmm Energy
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