Harbour Energy Plc · LSE:HBR
Harbour Energy — Investor Presentation (November 2022)
26 slides from Harbour Energy's investor presentation, November 2022
Slide 1: Investor Presentation
Investor Presentation Harbour Energy plc November 2022
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: Evolution of Harbour
Introduction Operational review Financial review and guidance Summary Appendix Evolution of Harbour 207 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 4: Harbour at a glance
Introduction Operational review Financial review and guidance Summary Appendix Harbour at a glance A FTSE100 global Independent O&G company Norway 200-210 kboepd1 UK (2022F) Mexico Vietnam $14/boe1 948 mmboe2 Operating cost 2P reserves + 2C (2022F) resources (YE 2021) Indonesia c.$1.0 bn1 $2-2.2bn T
Slide 5: The macro-environment: the UK / European gas market
Introduction Operational review Financial review and guidance Summary Appendix The macro-environment: the UK / European gas market Gas remains the UK’s largest source of energy, supplying 43% of energy demand in 20211 UK gas market How does the UK get it’s gas?1 Annual UK gas demand of c.2.5 TCF1
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: Harbour's strategic scope
Introduction Operational review Financial review and guidance Summary Appendix Harbour’s strategic scope Harbour will… Harbour will not… Focus on upstream oil and gas production Invest in non-strategic midstream, power, renewables Grow to at least two regions of scale Stay of scale in one region, ac
Slide 8: Building a long-term shareholder base supportive of our strategy
Introduction Operational review Financial review and guidance Summary Appendix Building a long-term shareholder base supportive of our strategy The $300m buyback programme has helped to accelerate the transition of the register Ex- Chrysaor Other 8% EIG 8% 16% Ex-Premier EIG stakeholders 37% Long on
Slide 9: Highlights year-to-30 September
Introduction Operational review Financial review and guidance Summary Appendix Highlights year-to-30 September Production averaged 207 kboepd, a 27% increase on the corresponding prior period Full year production now expected to be in upper half of 200-210 kboepd guidance Revenue of $4.1 billion wit
Slide 10: 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 11: 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 Harbour delivers c. 15% of the UK’s O&G production & is the largest upstream producer & investor today Production of 207 kboepd, over 90% from the UK
Slide 12: Strong operational performance
Introduction Operational review Financial review and guidance Summary Appendix Strong operational performance Production up 27% year-on-year, driven by full Premier contribution, improved production efficiency1 and new wells on-stream Production kboepd Improved efficiency % 250 200 2022 Guidance H1
Slide 13: Increased drilling rig activity in H2 2022
Introduction Operational review Financial review and guidance Summary Appendix Increased drilling rig activity in H2 2022 Short cycle, high value opportunities to maintain production while generating material free cash flow Today 2022 2023 Disciplined capital investment H1 H2 Q1 NORTH SEA programme
Slide 14: 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 Maintain highly cash generative, UK Portfolio J-Area: Talbot FID GBA: Leverett appraisal sanctioned Tolmount: Increases UK gas supply Talbot
Slide 15: 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 16: 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 17: 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 18: 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 H1 2022 Progressing a wide range of activities to r
Slide 19: Harbour is participating in two early stage Carbon Capture and Storage projects
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 20: 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 21: 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 22: 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 H1 performance supports improved free cash flow Proven track record of rapid pay down post generation outlook acquisitions $ b
Slide 23: 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 24: Guidance
Introduction Operational review Financial review and guidance Summary Appendix Guidance Free cash flow is first half weighted due to timing of capex, tax payments and shareholder returns Production Total capex 2022 2022 1 Jan to 30 2022 kboepd $m Guidance Guidance Sep 2022 Guidance Liquids Gas UK In
Slide 25: 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 26: investor.relations@harbourenergy.com www.harbourenergy.com
+44 (0)1224 086000 investor.relations@harbourenergy.com www.harbourenergy.com
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