Harbour Energy Plc · LSE:HBR
Harbour Energy — Investor Presentation (May 2022)
16 slides from Harbour Energy's investor presentation, May 2022
Slide 1: Investor Presentation
Investor Presentation Harbour Energy plc May 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 Operations Finance Outlook Evolution of Harbour >200 kboepd 175 kboepd1 137 kboepd 17 kboepd ConocoPhillips Largest UK listed Harbour founded by Shell transaction Premier merger transaction completed independent O&G Co2 private equity completed Q4 completed Q1 Q3 $5.4bn3 market cap 2014
Slide 4: Strategy
Introduction Operations Finance Outlook Strategy Our strategy is to continue to build a global, diversified oil and gas company Ensure safe, reliable and environmentally responsible operations Maintain a high-quality portfolio of reserves and resources Leverage our full cycle capability to diversify
Slide 5: Highlights year-to-date and outlook
Introduction Operations Finance Outlook Highlights year-to-date and outlook Q1 production averaged 215 kboepd, up c. 35 per cent on Q1 2021 On track to meet full year guidance of 195-210 kboepd Q1 operating costs of $14.1/boe; full year guidance unchanged at $15-16/boe New wells on-stream at J-Area,
Slide 6: 2022 Production up c.15% due to full year from Premier, new wells on-stream and improved uptime
Introduction Operations Finance Outlook 2022 Production up c.15% due to full year from Premier, new wells on-stream and improved uptime Production 2022 Guidance kboepd Up c.15% at guidance mid-point 195-210 kboepd 250 2021 175 kboepd 200 150 ▪ J-Area ▪ AELE ▪ Buzzard 100 ▪ Catcher Area ▪ SE Asia 50
Slide 7: North Sea assets
Introduction Operations Finance Outlook North Sea assets West of Shetlands Beryl Area 2022 year-to-date highlights Operated Non-operated ▪ Improved operational reliability ▪ Continued outperformance from the GBA satellite wells Clair - multi-decade oil field Cash generative, material upside ▪ New we
Slide 8: Tolmount: First gas achieved, ramp-up underway
Introduction Operations Finance Outlook Tolmount: First gas achieved, ramp-up underway Tolmount: Will increase UK domestic gas production by >5% ATEX inspection and repair campaign concluded Testing and commissioning of platform essentially complete Start-up complete: ▪ Platform handover to ODE (dut
Slide 9: International portfolio
Introduction Operations Finance Outlook International portfolio Cash generative assets in South East Asia, with attractive organic growth options in Indonesia and Mexico Tuna, Indonesia: Zama, Mexico: Andaman, Indonesia: Positive appraisal results Robust economics, long life field Potential multi TC
Slide 10: CCS projects: V Net Zero & Acorn
Introduction Operations Finance Outlook CCS projects: V Net Zero & Acorn Progressing our UK CCS projects to support a lower carbon economy in the UK and generate revenue from importation V Net Zero – Low cost low risk CO2 transportation and storage project led by Harbour ▪ The Humber is the UK’s mos
Slide 11: Delivering against our capital allocation priorities
Highlights Operations Finance Outlook Delivering against our capital allocation priorities Safeguard balance sheet Ensure a robust & diverse portfolio Deliver shareholder returns ▪ Targeting leverage of less than 1.5x ▪ Focused investment to underpin cash ▪ Aim to deliver both growth and through the
Slide 12: Increased production and commodity prices to drive materially higher free cash flow in 2022
Highlights Operations Finance Outlook Increased production and commodity prices to drive materially higher free cash flow in 2022 Net debt $ million 2022 forecast FCF1 A diversified capital structure 3,000 10% $1.5bn-$1.7bn ▪ $4.5 billion RBL, including sub-limit of $1.25 billion for Letters of Cred
Slide 13: Three year (2022-2024) capital allocation outlook
Highlights Operations Finance Outlook Three year (2022-2024) capital allocation outlook Well placed to deliver value creation, growth and shareholder returns CMD price assumptions1 Illustrative three year capital allocation Over 2022-2024, Harbour’s business: $m Current price sensitivity2 ▪ Delivers
Slide 14: Guidance
Introduction Operations Finance Outlook Guidance 2021 Actual1 2022 Guidance Q1 2022 Actual1 Production 175 195-210 215 kboepd kboepd kboepd Operating Cost 15.2 15-16 14.1 $/boe $/boe $/boe 1,000 130 P&D and E&A Capex $m $m 935 $m Decommissioning 300 30 expenditure $m $m 1 2021 numbers are provided o
Slide 15: A unique investment opportunity
Introduction Operations Finance Outlook Well positioned for value creation Pure play, upstream, Diverse, cash Positioning for the global O&G company generative producing energy transition portfolio of scale A unique investment opportunity Conservative financial Commitment to Track record of creating
Slide 16: investor.relations@harbourenergy.com www.harbourenergy.com
+44 (0)1224 086000 investor.relations@harbourenergy.com www.harbourenergy.com