Harbour Energy Plc · LSE:HBR
Harbour Energy — Investor Presentation (February 2023)
22 slides from Harbour Energy's investor presentation, February 2023
Slide 1: Investor Presentation
Investor Presentation Harbour Energy plc February 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: 2022 Highlights
Introduction Operational review Financial review and guidance Summary Appendix 2022 Highlights Increased production of 208 kboepd (2021: 175 kboepd), towards the top end of guidance and supported by new wells online, improved uptime and full contribution from PMO assets Improved safety performance w
Slide 4: Evolution of Harbour
Introduction Operational review Financial review and guidance Summary Appendix Evolution of Harbour 208 kboepd 175 kboepd 137 kboepd 17 kboepd ConocoPhillips Largest UK listed Harbour founded by Shell transaction Premier merger transaction completed independent O&G Co1 private equity completed Q4 co
Slide 5: Harbour at a glance
Introduction Operational review Financial review and guidance Summary Appendix Harbour at a glance A FTSE250 global Independent O&G company Norway 208 kboepd UK (2022) Mexico Vietnam $13.7/boe 948 mmboe1 Operating cost 2P reserves + 2C (2022) resources (YE 2021) Indonesia $1bn $2.1bn Total capex (in
Slide 6: Strategy
Introduction Operational review Financial review and guidance Summary Appendix Strategy To continue building a mid to large-sized, diversified global independent oil & gas company ▪ Ensure safe, reliable and environmentally responsible operations ▪ Retain a large diversified portfolio of production,
Slide 7: A focus on safe and responsible operations
Introduction Operational review Financial review and guidance Summary Appendix A focus on safe and responsible operations Safety is our top priority ▪ No significant injuries or spills during the period ▪ Improved safety performance ▪ Summer shutdowns completed safely & on schedule Judy (UK) scaffol
Slide 8: A diversified production base of scale with significant gas exposure
Introduction Operational review Financial review and guidance Summary Appendix A diversified production base of scale with significant gas exposure We delivered c. 15% of the UK’s domestic O&G production, supporting energy security at a critical time ▪ Production of 208 kboepd, over 90% from the UK
Slide 9: 2023 rig schedule
Introduction Operational review Financial review and guidance Summary Appendix 2023 rig schedule Short cycle, high value opportunities to support production while generating material free cash flow Today 2023 capital investment programme ▪ 2022 expenditure lower due the decisions not to proceed with
Slide 10: Continued investment in organic portfolio opportunities – UK and International
Introduction Operational review Financial review and guidance Summary Appendix Continued investment in organic portfolio opportunities – UK and International Highly cash generative, UK Portfolio J-Area: Talbot FID GBA: Leverett appraisal sanctioned Tolmount: Increases UK gas supply ▪ Talbot: high re
Slide 11: Material gas discovery in Andaman Sea, Indonesia
Introduction Operational review Financial review and guidance Summary Appendix Material gas discovery in Andaman Sea, Indonesia Timpan-1 gas discovery ▪ Play opening Timpan-1 well ▪ Significantly de-risks multiple prospects across Harbour’s Andaman Sea acreage ▪ Encountered 390 foot gas column in a
Slide 12: Ambition to diversify and grow internationally via M&A
Introduction Operational review Financial review and guidance Summary Appendix Ambition to diversify and grow internationally via M&A Since Q4 2021 the value of O&G deals in the market has increased by 17% to c. $160 billion1 Criteria: The upstream opportunity set in our focus regions remains rich1
Slide 13: Disciplined approach with focus on strategic fit and value creation
Introduction Operational review Financial review and guidance Summary Appendix Disciplined approach with focus on strategic fit and value creation Track record of executing complex M&A transactions with large O&G companies and adding value to the assets acquired Improved recovery, added reserves & M
Slide 14: Addressing our environmental impact
Introduction Operational review Financial review and guidance Summary Appendix Addressing our environmental impact Taking action to achieve our Net Zero goal by 2035 Asset decarbonisation ▪ Scope 1 and 2 emissions intensity materially improved in 2022 ▪ Progressing a wide range of activities to redu
Slide 15: Harbour is participating in two early stage CCS projects in the UK
Introduction Operational review Financial review and guidance Summary Appendix Harbour is participating in two early stage Carbon Capture and Storage (CCS) projects in the UK The UK government sees CCS as playing a critical role in achieving the country’s Net Zero emission targets ▪ The UK governmen
Slide 16: Harbour-led Viking CCS: CO2 transportation and storage from the Humber region
Introduction Operational review Financial review and guidance Summary Appendix Harbour-led Viking CCS: CO2 transportation and storage from the Humber region Harbour is well positioned to deploy its skills and infrastructure to accelerate CCS, building on >40 years operating experience ▪ Targeting a
Slide 17: Strong cash generation through the cycle
Introduction Operational review Financial review and guidance Summary Appendix Strong cash generation through the cycle… ...underpinned by prudent capital allocation and a robust financial framework A reliable and safe operator A strong focus on managing costs High quality forward investment portfol
Slide 18: Material optionality over future capital allocation with potential to be net debt free in 2023
Introduction Operational review Financial review and guidance Summary Appendix Material optionality over future capital allocation with potential to be net debt free in 2023 Improved FCF driven by higher production and prices Continued track record of rapid pay down post offset by hedging losses and
Slide 19: With low leverage, shifting hedging strategy to increase exposure to market pricing
Introduction Operational review Financial review and guidance Summary Appendix With low leverage, shifting hedging strategy to increase exposure to market pricing… ...while continuing to protect the downside Hedged volumes reduce materially over next 3 years Recent oil hedging prices ▪ Greater flexi
Slide 20: Guidance
Introduction Operational review Financial review and guidance Summary Appendix Guidance 2022 2022 2023 Guidance1 Actual Guidance Upper end of Production 200-210 208 185-200 kboepd kboepd kboepd Operating Cost 14 13.7 c.16 $/boe $/boe $/boe 0.8 0.9 P&D and E&A Capex $bn $bn 1.0 $bn Decommissioning 0.
Slide 21: Why Harbour Energy?
Introduction Operational review Financial review and guidance Summary Appendix Why Harbour Energy? Well positioned for value creation, growth and shareholder returns ▪ Pure-play, upstream global O&G producer ▪ A focus on safe and responsible operations ▪ High quality, diversified cash generative ass
Slide 22: investor.relations@harbourenergy.com www.harbourenergy.com
+44 (0)1224 086000 investor.relations@harbourenergy.com www.harbourenergy.com
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