Harbour Energy Plc · LSE:HBR
Harbour Energy — Investor Presentation (September 2024)
36 slides from Harbour Energy's investor presentation, September 2024
Slide 1: Investor presentation: Completion of Wintershall Dea asset portfolio acquisition
Investor presentation Completion of Wintershall Dea asset portfolio acquisition September 2024
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE: THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE BEING SUPPLIED TO YOU FOR YOUR INFORMATION ONLY AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY TO ANY OTHER PERSON. BY ACCESSING THIS DOCUMENT YOU AGREE TO BE B
Slide 3: Contents
Contents 1. Overview 2. Operational review 3. Financial position and guidance 4. Outlook 5. Appendix Harbour Energy | Investor Presentation 3
Slide 4: Overview
Overview A large, geographically diverse independent oil and gas company
Slide 5: 2024 year-to-date highlights
2024 year-to-date highlights Building a global, sustainable independent oil and gas company Maximising the value of our production base ▪ Continued strong safety performance ▪ UK capital projects, including Talbot, on track International growth and diversification ▪ Significant Tangkulo (Indonesia)
Slide 6: Harbour Energy at a glance
Harbour Energy at a glance A large, diverse portfolio with robust margins underpinned by significant reserves and resources 2024F production (proforma)1 YE23 2P reserves (proforma)2 kboepd bnboe Norway UK 1.5 Norway Plus, leading CO2 storage (c.60% gas) position in Europe Argentina UK Germany North
Slide 7: M&A is a core part of our strategy
M&A is a core part of our strategy Track record of successfully executing value accretive, large scale and complex M&A and integration projects UK North Sea – $3.0bn UK North Sea – $2.7bn Premier Oil plc – c.$2.8bn Wintershall Dea – $11.2bn Seller: Shell Seller: ConocoPhilips Reverse merger Seller:
Slide 8: Overview of Acquisition
Overview of Acquisition Acquisition of Wintershall Dea asset portfolio completed 3 September 2024 (effective date of 30 June 2023) $11.2 bn Acquisition Funding structure Adds material positions in Norway, Germany, Argentina, Mexico and North Africa and expands CCS interests in Northern Europe 3 Equi
Slide 9: Wintershall Dea acquisition is the most transformational step in our journey yet
Wintershall Dea acquisition is the most transformational step in our journey yet High quality, cash generative portfolio underpins investment grade credit profile and enhanced shareholder returns 2P reserves1 Production3 Unit operating cost3,4 Annual dividend (all shares)5 YE 2023, bnboe 2024F, kboe
Slide 10: Investment case
Investment case A pure play, global independent oil and gas company focused on value creation, cash flow and distributions One of the world’s largest and most geographically diverse independent oil and gas companies High quality, cash flow generative asset base with broad set of growth options Track
Slide 11: 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 H1 2024 Production kboepd1 Norwegian independents Pro forma 500 Harbour UK listed independents US focused independents WDEA
Slide 12: Operational review
Operational review Large scale and diverse portfolio with broad set of growth options
Slide 13: A focus on safe and responsible operations
A focus on safe and responsible operations Consistently strong safety performance; Wintershall Dea acquisition materially reduces Harbour’s GHG intensity Occupational safety1 Process safety1 Greenhouse gas emissions intensity3 TRIR (per million hours worked) Number of events kgCO2e/boe Harbour Indus
Slide 14: Acquisition of Wintershall Dea portfolio triples Harbour's production on a proforma basis
Acquisition of Wintershall Dea portfolio triples Harbour’s production on a proforma basis 2024 production significantly increased to reflect four months of production from acquired portfolio 2024 Production (reported1) 2024 Production (proforma2) Working interest, kboepd Working interest, kboepd A s
Slide 15: Competitive cost base with robust margins
Competitive cost base with robust margins 2024 unit operating cost materially reduced, driven by acquisition of high quality, low-cost portfolio 2024F operating cost 2024F operating cost (proforma) $/boe1 $/boe1,3 New guidance SE Asia $16-17/boe c.18 UK 16-17 Germany 13-14 Mexico Norway Argentina Ac
Slide 16: Capital programme largely targeted at developing 2P reserves to sustain production
Capital programme largely targeted at developing 2P reserves to sustain production Continued strong capital discipline and enlarged portfolio enables prioritisation of investment opportunities 2024F Total capex, including decommissioning 300 0 $bn $/boe 30 Norway: Increasing near term production ▪ P
Slide 17: A large and diverse set of growth options
A large and diverse set of growth options… …underpinning future production and significant reserve replacement YE 2023 2C resources1,2 2C resource: c.800 mmboe2 High value, short cycle bnboe ▪ Significantly de-risked, near-term volumes ▪ Infill drilling programmes N. Afr. ▪ Near field step outs, sat
Slide 18: CCS
CCS Building an advantaged CCS portfolio, anchored by Harbour’s Viking project, with long term cash flow potential Harbour CO2 storage licence interests Proposed CO2 transportation pipeline ▪ Broad, pan European Energy hub portfolio of CO2 transport and storage Norway projects Luna ▪ Long term Green
Slide 19: Financial position and guidance
Financial position and guidance Financial strength and capital discipline
Slide 20: Financial strength underpinned by high quality portfolio and continued capital discipline
Financial strength underpinned by high quality portfolio and continued capital discipline Harbour retains capital allocation optionality for additional returns and further growth Safe, responsible and efficient High quality portfolio Robust risk management operations Material cash flow generation su
Slide 21: Enlarged group debt structure
Enlarged group debt structure Harbour’s debt structure has been transformed by unsecured, low cost and flexible bank facilities and bonds Debt structure Group liquidity $bn $bn equivalent1 Excess cash used to fully repay ▪ Flexible investment grade structure with limited Cash c.$0.3bn RCF cash drawi
Slide 22: Net debt and Completion sources and uses
Net debt and Completion sources and uses Target portfolio generated free cash flow of c. $1.2bn1 between effective date of 30 June 2023 and end July 2024 Completion sources and uses Net debt on completion $bn $bn Harbour Sources 0.30 0.30 0.5 cash 0.30 0.8 5.02 1.72 1.5 Bridge facility 1.5 4.5 Adjus
Slide 23: Hedging
Hedging Up to completion, Harbour and Wintershall Dea continued to hedge their production in line with their own strategies Hedged oil volumes and prices1 Hedged European gas volumes and prices1 c.$2.2 bn Kboepd, % Volumes hedged Kboepd, % Volumes hedged 90 14 Pro forma revenue Av. hedged price, $/b
Slide 24: Delivering competitive and sustainable shareholder returns
Delivering competitive and sustainable shareholder returns High quality portfolio, free cash flow accretion and investment grade credit supports enhanced shareholder returns Harbour annual dividend1 Increased scale and geographical diversification ($m) 480 Ordinary 475 470 465 460 shares c.$455m 455
Slide 25: Guidance: 2024 production and unit operating cost materially enhanced by acquisition completion
Guidance: 2024 production and unit operating cost materially enhanced by acquisition completion Guidance and proforma metrics are consistent with that provided by Harbour and Wintershall Dea on 8 August Guidance updated for WD completion Harbour Harbour (reported1) Proforma2 metrics FY 2024 (As 8 Au
Slide 26: Outlook and priorities
Outlook and priorities Well positioned for value creation
Slide 27: 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 Priorities 470-485 kboepd Maximise the value of our production base responsibly Progress international growth and diversi
Slide 28: Appendix: Asset portfolio country summaries
Appendix Asset portfolio: country summaries
Slide 29: Norway
Norway High quality, diverse asset base with significant near field opportunity set and an impressive exploration success rate ▪ Diversified asset base; multiple export H1 2024 production Partnered with well-established operators routes into European gas markets kboepd Maria Other Snorre ▪ High oper
Slide 30: UK
UK Large scale, diverse asset base with high degree of operational control Operated ▪ Diversified asset base with a balance H1 2024 production Operated Clair Non-operated of oil and gas kboepd West of Non-operated Schiehallion Shetland Solan GBA ▪ Strong safety and operating record Beryl Beryl ▪ Sca
Slide 31: Germany
Germany Sustainable, cash generative business with long reserve life and low emissions ▪ One of the largest oil and gas producers H1 2024 production in Germany kboepd Other ▪ Sustaining production at c.30 kboepd Mittelplate Mittelplatte ▪ Focus on optimisation, efficiency and Emlichheim GHG emission
Slide 32: Argentina
Argentina Long life production with potential for material growth, including via the scalable Vaca Muerta unconventional play ▪ Active in Argentina since 1978 H1 2024 production >45 years ▪ One of the country’s largest gas producers kboepd active in Argentina San Roque ▪ Long term, competent operato
Slide 33: Mexico
Mexico Material interests in large offshore oil fields provides significant optionality for growth ▪ Built position in Mexico organically and via Kan Hokchi H1 2024 production acquisition, most recently Hokchi in March kboepd 2023 Ogarrio ▪ Combined, Harbour and the target portfolio will have the la
Slide 34: MENA
MENA A focus on production and cost optimisation, reserve additions and infrastructure-led exploration ▪ Long and established history H1 2024 production YE 2023 2P reserves and 2C resources kboepd mmboe4 ▪ Trusted partner with strong stakeholder Al Jurf relationships 2P Reggane 69 12 ▪ Critical supp
Slide 35: SE Asia: Indonesia and Vietnam
SE Asia: Indonesia and Vietnam Material organic growth opportunities in supportive country with strong working relationships ▪ Active in Indonesia since 1996 Operated Non-operated ▪ High degree of operational control Vietnam ▪ Significant growth opportunities Andaman II 12W Chim Sáo ▪ Strong stakeho
Slide 36: i Harbour
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