Harbour Energy Plc · LSE:HBR
Harbour Energy — Investor Presentation (May 2025)
28 slides from Harbour Energy's investor presentation, May 2025
Slide 1: Harbour Energy Investor presentation
May 2025 Harbour Energy Investor presentation
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: Overview
Overview
Slide 4: One of the world’s largest and fastest growing independent oil and gas companies
One of the world’s largest and fastest growing independent oil and gas companies Publicly-listed (UK FTSE) 455-475 Diverse production base kboepd >450 kboepd Competitive operating costs and resilient margins Broad set of strategic organic 258 kboepd investment options Leading European CO2 175 kboepd
Slide 5: Global portfolio – four key countries drive our results
Global portfolio – four key countries drive our results Norway, UK, Argentina and Mexico account for over 80% of our portfolio % 455-475 1.25 1.91 kboepd bnboe bnboe 80% Norway: High quality production UK: Diverse asset base with high degree with significant near field opportunities of operational c
Slide 6: Track record of delivery and growth across multiple dimensions
Track record of delivery and growth across multiple dimensions Strong production growth Material reserves growth Improved earnings Production YE 2P reserves EBITDAX 65% kboepd bnboe 1.25 $bn 4.0 c. 50% 258 c.2.5x 175 2.4 0.49 1.5 0.35 17 2017 2021 2024 2017 2021 2024 2017 2021 2024 Robust free cash
Slide 7: Q1 2025 highlights and updated outlook
Q1 2025 highlights and updated outlook Strong operational and financial delivery ▪ Production of 500 kboepd, Norway largest producing country ▪ Opex reduced to $13/boe; 2025 capital projects on track ▪ Good progress on growth projects, incl. SESA LNG FID (Argentina) ▪ Free cash flow of $0.7bn; net d
Slide 8: Operational review
: Operational review
Slide 9: A focus on safe and responsible operations
A focus on safe and responsible operations No serious process safety events and GHG emissions intensity materially reduced in Q1 2025 Occupational safety Process safety Greenhouse gas emissions intensity2 TRIR (per million hours worked) Number of events kgCO2e/boe Harbour Industry average1 Tier 1 Ti
Slide 10: Production: FY 2025 guidance narrowed upwards driven by strong Q1 performance
Production: FY 2025 guidance narrowed upwards driven by strong Q1 performance Guidance narrowed Production kboepd 455-475 kboepd (previously 450-475) Other 1 Other Mexico gas Argentina European A diverse asset base of scale delivering resilient production gas ▪ Scale in multiple established basins 2
Slide 11: A competitive cost base underpinning robust margins through 2030
A competitive cost base underpinning robust margins through 2030 Unit operating cost1 $/boe c.15% 16.5 c.14 <$15/boe Guidance through 2030 Continued focus on cost control 2024 2025 2026 2027 2030 ▪ Q1 unit opex c.30% lower (vs Q1 2024) at $13/boe 2025F unit operating cost1 $/boe ▪ Accelerated cost i
Slide 12: Investment focused on our highest return projects
Investment focused on our highest return projects Total capex Guidance lowered $bn $/boe1 $2.4-2.5 billion 2025 capital projects on track (previously $2.4-2.6bn) ▪ Jocelyn South (UK) onstream c.3 months after discovery 2600 25 ▪ Norway subsea projects progressed, including Maria Phase 2 with product
Slide 13: Norway: Pipeline of high-quality, infrastructure led projects support production
Norway: Pipeline of high-quality, infrastructure led projects support production Harbour’s upcoming projects Approved projects deliver 75 2P reserves and 2C resources, mmboe (net) >100 mmboe reserves into production Approved developments Future projects Harbour operated Future projects could convert
Slide 14: Strong resource position underpinning long term production and reserve replacement
Strong resource position underpinning long term production and reserve replacement Maturing a diverse set of future investment options 2C contingent resources1 2C resource: c.700 mmboe1 High value, short cycle investments bnboe ▪ Infill drilling, satellite tie-backs ▪ Leveraging existing infrastruct
Slide 15: Southern Energy: Enabling access to global natural gas markets and international prices
Southern Energy: Enabling access to global natural gas markets and international prices Potential to accelerate development of Harbour’s gas resource in the Vaca Muerta Southern Energy LNG (HBR, 15% interest) ▪ Final investment decision taken1 in Q2 2025 Flow Reversal ▪ Partners: Golar LNG, Pan Amer
Slide 16: Carbon Capture and Storage (CCS): A leading CO2 storage position in Europe
Carbon Capture and Storage (CCS): A leading CO2 storage position in Europe Harbour CCS projects to compete for capital within the Harbour capital allocation process Harbour CO2 storage licence interests A right-sized CCS portfolio can Energy hub complement Harbour’s strategy: ▪ Long-dated, stable ca
Slide 17: High grading of our capital programme
High grading of our capital programme Total capex Updated Norway Argentina $m guidance Mexico Other UK ▪ Reduced spending 2024-26 driven $2.4-2.5bn by UK and project high grading 2,500 c.20% ▪ Near term focused on high value, short cycle opportunities 2,000 ▪ Significant optionality longer term with
Slide 18: Portfolio sustains highly cash generative production well beyond 2030
Portfolio sustains highly cash generative production well beyond 2030 Production Guidance Norway Argentina kboepd 455-475 Mexico Other UK 500 kboepd ▪ 2025-27 production averages c.450 kboepd ▪ Growth in Norway, Argentina and – over time – Mexico, offsetting UK decline Long term, ‒ Norway projects o
Slide 19: Financial position & capital allocation
Financial position & capital allocation
Slide 20: Consistent and clear capital allocation priorities
Consistent and clear capital allocation priorities Balance Robust and Shareholder sheet strength diverse portfolio returns ▪ Maintain robust balance sheet ▪ Invest in high quality projects ▪ A competitive annual dividend ▪ Ensure significant liquidity ▪ Establish material production of $200m 2021 ▪
Slide 21: Prudent risk management with a systematic approach to hedging
Prudent risk management with a systematic approach to hedging Hedging to protect the balance sheet while maintaining price appreciation exposure Production ▪ Disciplined risk management approach European gas volumes hedged c.20% c.40% c.80% Linear with 2-year rolling horizon 13 Volumes hedged, kboep
Slide 22: Investment grade capital structure and significant liquidity
Investment grade capital structure and significant liquidity All near-term debt maturities pre-funded Liquidity $3bn RCF committed to 2029 End Q1 2025, $bn 2.4 3.7 Access to diverse sources of capital Successful issuance of $3.6bn of bonds since WD completion Weighted average cost of bonds approxima
Slide 23: Robust free cash flow outlook
Robust free cash flow outlook Net debt reduced by $0.5bn to $4.2bn 2025 FCF outlook updated to $0.9bn $ billion1 $ billion2 +/-$5/bbl Brent or +/-$1/mscf in EU gas +/-$115m FCF c.1.0 4.7 Q1 FCF reflects ▪ Strong operational delivery c.0.3 c.0.9 ▪ Robust commodity prices c.0.2 Well positioned to deli
Slide 24: Delivering returns-focused value
Delivering returns-focused value Capital allocation priorities Outlook (2025-2027) 1 Investment grade balance sheet strength ▪ Investment grade credit rating ▪ <1.0x leverage ratio 1 ▪ c.$0.5-1.0bn debt reduction 3 2 Robust and diverse portfolio ▪ c.450 kboepd production ▪ <$15/boe operating costs ▪
Slide 25: Guidance & outlook
: Guidance & outlook
Slide 26: Guidance and sensitivities
Guidance and sensitivities Updated for strong Q1 performance and mitigating actions, demonstrating resilience in softer market FY 2025 Q1 FY 2025 FY 2025 Guidance1 Guidance1 (May vs Jan) Actual (January 2025) (May 2025) Production 450-475 500 455-475 kboepd Guidance Unit opex $/boe c.14 13 c.14 Tota
Slide 27: Why Harbour Energy?
Why Harbour Energy? A track record of strategic, operational and financial delivery supported by a world class team A large scale, diverse producing asset base with a competitive cost structure and exposure to Brent oil prices and European gas prices Broad set of attractive strategic investment opti
Slide 28: Harbour Energy
i Harbour mmm Energy