Harbour Energy Plc · LSE:HBR
Harbour Energy — Investor Presentation (April 2021)
21 slides from Harbour Energy's investor presentation, April 2021
Slide 1: A New Global Independent O&G Company
A New Global Independent O&G Company April 2021
Slide 2: Agenda
AGENDA 1. Harbour Energy – a compelling investment opportunity 2. A global portfolio with a material North Sea foundation 3. Financial position and outlook 2 HBR Investor Presentation | April 2021
Slide 3: A compelling investment opportunity
A compelling investment opportunity
Slide 4: Harbour Energy
HARBOUR ENERGY Active in 2P + 2C 7 Countries 1,691 mmboe1 Norway A new global > 1,800 independent Production Employees O&G company > 200 kboepd UK Operating cost Net Zero by 2035 <$15/boe Vietnam Mexico Brazil Indonesia Expectation of a 2021 FCF breakeven dividend near-term $30-35/boe2 Falkland Isla
Slide 5: Highly Experienced Leadership Team and Board
HIGHLY EXPERIENCED LEADERSHIP TEAM AND BOARD A majority independent Board with significant industry and / or public listed company experience Linda Cook Phil Kirk Alexander Krane CEO, President & CEO of Europe, CFO, Executive Director Executive Director Executive Director Former Managing Director
Slide 6: Free Float Set to Increase Significantly Over Time
FREE FLOAT SET TO INCREASE SIGNIFICANTLY OVER TIME The largest UK listed independent O&G company Former Premier Listed on the premium segment of the LSE under the ticker HBR Chrysaor legacy shareholders investors / other 5% Member of FTSE All Share with the expanded share count included in 8% Fo
Slide 7: 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 /
Slide 8: 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-
Slide 9: A global portfolio with a material North Sea foundation
A global portfolio with a material North Sea foundation
Slide 10: UK: A Business of Scale Generating Material Cash Flows
UK: A BUSINESS OF SCALE GENERATING MATERIAL CASH FLOWS Operated Diversified, tax-efficient asset base UK 2P reserves1 Non-operated Schiehallion Balance of oil vs gas Elgin/Franklin AELE Hub Low, stable operating costs Significant interest in major UK long Clair life, hub assets High degree
Slide 11: Sustaining UK Production
SUSTAINING UK PRODUCTION Greater Tolmount Area J-Area Greater Britannia Area Catcher Area Ongoing gas injection trials for improved oil recovery 4D seismic acquisition starting April Near field/infill drilling to commence early 2022 Tolmount Main 500 BCF (gross) 2020 production of 31 kboep
Slide 12: 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
Slide 13: 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
Slide 14: A Platform for Future Growth
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 the acquired asse
Slide 15: Financial position and outlook
Financial position and outlook
Slide 16: Strong Financial Position
STRONG FINANCIAL POSITION Targeting conservative leverage of Expectation to initiate a sustainable Potential for investment grade <1.5x through the cycle dividend in the near term credit rating Net debt1 on completion of $2.9 billion Net debt1,2 $000m Significant day 1 liquidity of >$700 million
Slide 17: 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
Slide 18: 2021 Guidance
2021 GUIDANCE ACCOUNTING TREATMENT OF ALL SHARE MERGER Chrysaor is the acquirer with its 2021 results to be reported on a full year basis (IFRS3 Business Combinations) Premier’s financial results will be reported from the date of completion with Premier’s balance sheet incorporated into Chrysaor
Slide 19: Harbour Reporting Cycle and Upcoming Events
HARBOUR REPORTING CYCLE AND UPCOMING EVENTS Financial Reporting AGM & Capital Half Year Trading Full Year Trading Markets Results Update Results Update Day 2021 2022 April May June July August September October November December January February March April Harbour Shareholder Enlarged Shareholder H
Slide 20: 2021 Priorities
2021 PRIORITIES Maintain safe and responsible operations Focus on health and safety of our people Minimise carbon footprint Production of >200 kboepd Successfully integrate the two businesses Maintain low cost base Deliver cost and tax synergies Generate material free cash flow Deliver a
Slide 21: ae Harbour
ae Harbour gem Energy