Harbour Energy Plc · LSE:HBR
Harbour Energy — Investor Presentation (September 2023)
25 slides from Harbour Energy's investor presentation, September 2023
Slide 1: Investor Presentation
Investor Presentation Harbour Energy plc September 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, including in relation to the financial condition of the Harbour group (the "Group") and the results of operations and businesses of the Group. Forward-looking statements are sometimes, but not always, identified by their use of a date
Slide 3: H1 2023 Highlights
H1 2023 Highlights Delivering our strategy
Slide 4: H1 2023 Highlights
H1 2023 Highlights Delivering our strategy of building a global diversified oil and gas company Maximising the value of our production base ▪ A safe and responsible operator 196 kboepd ▪ Robust performance from our operated UK hubs H1 2023 production ▪ Active management of our cost structure ▪ High
Slide 5: Operational review
Operational review Maximising the value of our production base
Slide 6: A focus on safe and responsible operations
A focus on safe and responsible operations Strong occupational safety record Improved process safety performance Safety is our top priority TRIR (per million hours worked)1 Events (Tier 1 and Tier 2)1 ▪ Building a strong safety >5 million hours Tier 1 Tier 2 record and culture 1.3 worked 2 ▪ No sign
Slide 7: A robust production performance…
A robust production performance… … underpinned by a diverse, cash generative production base with a good balance of oil and gas Production Guidance narrowed kboepd 185-1951 UK Production kboepd Strong performance from operated hubs kboepd 200 H1 2023 H1 2022 Summer maintenance 129 Operated 130 150 N
Slide 8: A proactive operator with competitive operations in the UK
A proactive operator with competitive operations in the UK Active management of cost structure to protect margins and ensure a sustainable and competitive business Efficiency Cost base Reliable operations, especially at ▪ Leveraging operational control and UK operating costs operated J-Area, GBA & C
Slide 9: Maximising value of our UK portfolio through targeted investment…
Maximising value of our UK portfolio through targeted investment… ... and realising the upside of our existing assets to support production and cash flow generation Track record of adding reserves Proactive operatorship Potential to improve recovery Shell/Conoco UK acquisitions ▪ Production accelera
Slide 10: 2023 drilling programme is H2 weighted
2023 drilling programme is H2 weighted Converting UK 2P reserves into production and targeting significant resource additions internationally 2023 Q1 2024 NORTH SEA Today J-Area J06 x3 Talbot Joc. S GBA Leverett appraisal Callanish F6 Tolmount Area Tol. E. Earn Beryl Platform Bravo well B66 Bravo we
Slide 11: Organic growth and diversification
Organic growth and diversification Growing portfolio of strategic investment opportunities
Slide 12: Growing portfolio of strategic investment opportunities
Growing portfolio of strategic investment opportunities … provide the potential to significantly diversify our business Our projects in Mexico and Indonesia have the potential to materially increase our reserves life Indicative reserve additions1 mmboe Mexico Indonesia c.100 mmboe 2C1 c.140 mmboe 2C
Slide 13: Harbour-led Viking CCS awarded Track 2 status in July
Harbour-led Viking CCS awarded Track 2 status in July Uniquely positioned to deploy skills and infrastructure to accelerate UK CCS Viking is vital to the UK’s capture target of 20-30 mtpa by 2030 ▪ Award of Track 2 status allows Viking to move to FEED and due diligence with DESNZ1 ahead of potential
Slide 14: Andaman Sea (Indonesia) campaign targeting multi-TCF of gas
Andaman Sea (Indonesia) campaign targeting multi-TCF of gas Demonstrate commercial viability of Andaman II licence and test the extension of the play into South Andaman ▪ 2022 Timpan-1 gas discovery de-risked a potential multi-TCF gas play ▪ Four well campaign to start in October ▪ Drilling 2023/24;
Slide 15: Financial review and 2023 guidance
Financial review and 2023 guidance Strong financial position and disciplined capital allocation
Slide 16: Greater flexibility around hedging strategy going forward
Greater flexibility around hedging strategy going forward Materially higher exposure to commodity prices, especially UK NBP, with hedging volumes set to reduce from 2024 Realised prices Hedging profile Volumes hedged, kboepd Lower realised pricing driven by fall in 80 commodity prices and historical
Slide 17: Income statement reflects strong underlying profitability…
Income statement reflects strong underlying profitability… …offset by period-specific, non-cash UK tax charges $ million H1 2023 H1 2022 Revenue lower due to lower commodity prices, especially NBP, and Revenue & other income 2,016 2,670 lower oil volumes Increase in financing costs driven by account
Slide 18: Balance sheet significantly delevered and equity increased
Balance sheet significantly delevered and equity increased Net cash balance sheet 30 June 2023 YE 2022 30 June 2023 YE 2022 Assets $ million S million Equity and liabilities $ million S million Goodwill 1,327 1,327 Equity 1,414 1,021 Other intangible assets 955 880 Borrowings 515 1,238 Property, Pla
Slide 19: Robust financial position with significant cash generation...
Robust financial position with significant cash generation... … allowing for material shareholder distributions and targeted investment in our business Free cash flow of $1 billion Significant liquidity Net debt / cash flow $bn $bn 1.0 Net tax refund ▪ 2022 CT/SCT payable in January 2023 offset by E
Slide 20: Building on our track record of rapid net debt reduction post M&A…
Building on our track record of rapid net debt reduction post M&A… …whilst delivering material shareholder distributions Net debt Shareholder distributions $ million Annual $200m dividend complemented with buybacks 3,000 Distributions made, $ million Dividend Buyback 361 2023 FCF of $1 billion1 (pos
Slide 21: 2023 Guidance
2023 Guidance 2023 guidance H1 2023 2023 guidance (Actual) (as at January 2023) (as at August 2023) Production Production 2023 Production 185-200 kboepd 196 kboepd 185-195 kboepd1 Operating cost Operating cost Operating cost c. $16/boe2 $15/boe c. $16/boe2 Total capex Total capex Total capex c. $1.1
Slide 22: Production and hedging position
Production and hedging position Group production H1 2023 (net, kboepd) H1 2022 (net, kboepd) J-Area 35 28 Greater Britannia Area 28 33 AELE hub 25 28 Elgin Franklin 21 26 Catcher 18 21 West of Shetlands1 14 15 Tolmount 13 6 Beryl 12 13 Buzzard 11 15 Other UK2 8 11 UK 185 196 International3 11 15 Tot
Slide 23: Summary
Summary Well positioned for value creation
Slide 24: A pure play upstream global oil & gas producer
A pure play upstream global oil & gas producer Safe and responsible High quality, cash Portfolio of strategic Robust financial position, operations generative portfolio investment opportunities strict capital discipline Playing a significant role in Targeting high return, short Organic diversificati
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