Harbour Energy Plc · LSE:HBR
Harbour Energy — H1 2024 Earnings Presentation
28 slides from Harbour Energy's earnings presentation, Aug 8, 2024
Slide 1: 2024 Half-year Results
Harbour Energy plc 2024 Half-year Results www.harbourenergy.com
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: Agenda
Agenda 1. H1 2024 highlights 2. Operational review 3. Growth and diversification 4. Financial review and guidance 5. Concluding remarks Harbour Energy | 2024 Half-year Results 2
Slide 4: H1 2024 highlights
H1 2024 highlights Solid strategic and operational delivery
Slide 5: H1 2024 highlights
H1 2024 highlights Building a global, sustainable independent oil and gas company Solid operational delivery ▪ Production on track – guidance narrowed ▪ UK capital projects, including Talbot, on schedule ▪ Significant Tangkulo (Indonesia) gas discovery ▪ Strategic investment opportunities advanced F
Slide 6: Operational review
Operational review Maximising the value of our existing portfolio
Slide 7: A focus on safe and responsible operations
A focus on safe and responsible operations Consistently strong safety performance and on track to deliver further emission reductions Occupational safety1 Process safety1 Greenhouse gas emissions1,2 TRIR (per million hours worked) Number of events Million tonnes Harbour Industry average3 Tier 1 Tier
Slide 8: Production guidance narrowed upwards
Production guidance narrowed upwards H1 production of 159 kboepd with strong performance from operated hubs; shutdowns and capital projects on track Production1 Planned maintenance New wells/projects Guidance narrowed New volumes kboepd shutdowns on-stream 155-1651 offset decline kboepd 172 146 Q1 Q
Slide 9: A proactive operator
A proactive operator Delivering incremental, high value barrels underpinned by a competitive cost base ▪ Leveraging scale and operational control to Operating costs H1 2023 18 manage our cost base H1 2024 0.5 0.5 15 ▪ Flexibility built into supply chain contracts ▪ Removing complexity and ensuring s
Slide 10: Harbour-operated UK capital projects to significantly increase production in Q4 2024
Harbour-operated UK capital projects to significantly increase production in Q4 2024 UK capital programme focused on high return, short cycle opportunities around Harbour’s key operated hubs UK capital investment1 $ billion 0.7 0.6 J-Area: Talbot (oil) GBA: Callanish F6 (oil) AELE: NW Seymour (gas)
Slide 11: Growth and diversification
Growth and diversification Progressing our strategic investment opportunities
Slide 12: International growth projects progressed
International growth projects progressed A broad set of organic growth options with the potential to add materially to our reserve life and production over time 2P reserves and 2C resources YE2023, mmboe1 519 Mexico Zama Active efforts to mature into 2P Zama (12% non-op) Kan ▪ FDP approved; FEED und
Slide 13: Andaman Sea (Indonesia): A multi-TCF gas play
Andaman Sea (Indonesia): A multi-TCF gas play Further exploration success with significant Tangkulo discovery; development options in the early phase of evaluation 2023/24 Exploration & appraisal campaign nearing completion Follows play-opening Timpan-1 (Andaman II) gas discovery (2022) Major gas di
Slide 14: UK CCS: Viking and Acorn
UK CCS: Viking and Acorn Building an advantaged CCS portfolio, anchored by Harbour’s Viking project, with long term cash flow potential Harbour-led Viking project: located to serve both UK and European markets Certified CO2 storage capacity YE 2023, million tonnes (net)1 ▪ FEED underway Viking (60%
Slide 15: Acquisition of Wintershall Dea's upstream asset portfolio for $11.2bn
Acquisition of Wintershall Dea’s upstream asset portfolio for $11.2bn (effective date 30 June 2023) Transforms Harbour into one of the world’s largest and most geographically diverse oil and gas companies Scale and diversification Funding structure ▪ Material positions in Norway, Germany, Argentina
Slide 16: Harbour to be well-placed amongst long-established 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 2023 Production kboepd1 Norwegian independents Pro forma UK listed independents Harbour US independents WDEA 500 250 0 Aker
Slide 17: Financial review and guidance
Financial review and guidance Financial performance in line with expectations
Slide 18: Price realisations and hedging
Price realisations and hedging Improved price realisations, especially for crude sales Realised pricing Hedging profiles Oil, $/bbl Hedged oil volumes and prices2 Brent Realised price1 Volumes hedged Av. hedged price, $/bbl kboepd 95 80 40 84 84 84 H1 85 78 73 2023 75 76 65 20 55 45 H1 84 35 2024 85
Slide 19: Income statement
Income statement Robust operating margins with profitability impacted by high effective tax rate $ million H1 2024 H1 2023 Revenue and EBITDAX reflects lower production volumes partially Revenue & other income 1,916 2,016 offset by stronger crude realisations and c.$50m of additional Total operating
Slide 20: Balance sheet
Balance sheet Balance sheet remains largely unchanged during the period YE 2023 YE 2023 Assets 30 June 2024 Equity and liabilities 30 June 2024 (restated)1 (restated)1 $ million $ million $ million $ million Goodwill 1,302 1,302 Equity 1,474 1,553 Other intangible assets 1,242 1,172 Borrowings2 494
Slide 21: Cash flow
Cash flow Strong cash flow allowed for continued investment, shareholder distributions and to close the period with net cash Net debt / cash Shareholder returns $bn Cents/share 8% $0.4 billion3 of FCF after capex, acquisition Final dividend dps2 Interim dividend growth fees, financing cost, tax and
Slide 22: 2024 guidance and 2025 outlook
2024 guidance and 2025 outlook Expect materially higher free cash flow from existing business in 2025 due to lower capex and improved hedging FY 2024F H1 20242 FY 2024F 2025 vs 2024 (As at Mar. 2024) (Actual) (As at Aug. 2024) (As at Aug. 2024) Guidance1 Production kboepd 150-165 159 155-165 Unit op
Slide 23: Concluding remarks
Concluding remarks Well positioned for value creation
Slide 24: Building a global, diversified oil and gas company via disciplined M&A
Building a global, diversified oil and gas company via disciplined M&A Well-positioned for continued value creation, enhanced shareholder returns and further growth opportunities On track to deliver our 2024 priorities c.500 kboepd Maximise the value of our production base responsibly Progress inter
Slide 25: Appendix
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Slide 26: Production and hedging position
Production and hedging position Group production Net, kboepd4 Hedging schedule As at 30th June 20245 H1 2024 H1 2023 H2 2024 2025 2026 2027 GBA 25 28 Volume Average Volume Average Volume Average Volume Average J-Area 19 35 price price price price AELE hub 22 25 mmboe p/therm mmboe p/therm mmboe p/th
Slide 27: 2024 drilling programme: maximising the value of our portfolio
2024 drilling programme: maximising the value of our portfolio Converting UK 2P reserves into production and targeting significant resource additions internationally 2024 Q1 2025 NORTH SEA TODAY J-Area Talbot Judy RB Chalk Jocelyn South RK Redrill GBA Callanish F6 Gilderoy Brodgar H5 AELE NW Seymour
Slide 28: i Harbour
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