Harbour Energy : Financial Report presentation (harbour energy investor presentation may 2026)

About this update from Harbour Energy Plc

Investor Presentation Harbour Energy plc May 2026 Overview One of the world's largest and fastest growing independent oil and gas companies Strategic acquisition of LLOG (US) completed February 2026, drives resilience and free cash flow growth Production 1 Working interest, kboepd c.500 kboepd What sets us apart? Track record Scale and diversification Significant organic inventory Proven M&A capability Cash flow and returns focused Financial discipline Harbour founded by private equity 2014 Shell UK transaction 2017 ConocoPhillips UK transaction 2019 Premier Oil merger 2021 Wintershall Dea acquisition 2024 Acquisition of LLOG Sustains production at 475-500 kboepd through end of decade 2026 2027 2028 2029 2030 Growth and diversification Resilience and longevity 1 Includes effects of the LLOG acquisition and the announced acquisition of Waldorf and Indonesia asset sales. 2024 is presented on a proforma basis for the Wintershall Dea transaction Globally diverse independent with scale Significant portfolio reshaping: SE Asia exits and strategic entry into US offshore Production 475-500 kboepd Competitive operating costs and resilient margins Broad set of strategic organic investment options Actively managed global portfolio Driving higher margins and free cash flow Linking shareholder distributions directly to free cash flow Harbour existing interests CCS opportunities Country entry 2026 Producing asset exit 2026 Norway Leading European CO 2 storage position UK Germany US Mexico North Africa Indonesia Argentina Diverse portfolio with five key countries driving our results Norway, UK, Argentina, Mexico and US account for c.90% of our portfolio % 480-500 kboepd 1.4 bnboe 1.9 bnboe c.90% 2026F YE 2025 PF YE 2025 PF production reserves 1 resources 1 Norway UK Argentina US Mexico Other 2 Norway: High quality production with significant near field opportunities UK: Diverse asset base with high degree of operational control Argentina: Long life production with potential for material growth US: Fully operated, oil weighted growth portfolio with long reserve life Mexico: Large offshore operated oil discoveries providing growth options 1 Proforma LLOG acquisition (completed 11 February 2026) and Waldorf and Indonesia transactions; 2 Other includes Germany, North Africa and Southeast Asia. Q1 2026 Highlights Continued strong delivery including high operational reliability and excellent project execution Portfolio strengthened; LLOG acquisition completed ahead of schedule Improved 2026 free cash flow outlook with potential for material debt reduction and shareholder returns Investment grade credit ratings confirmed Harbour Energy | 6 Against a backdrop of unprecedented disruption to energy markets and significant price volatility, we remain focused on playing our part in delivering the oil and gas the world needs, safely and efficiently . Three complementary transactions materially increase Harbour's 2026-2030 free cash flow Recycle capital, enhance cash flow and reinvest in accretive growth Sale of Indonesia assets $215m 1 Acquisition of Waldorf (UK) $170m Acquisition of LLOG (US) $3.2bn Portfolio high-grading Sub-scale production High unit opex High GHG intensity Enhancing cash flow Supports resilience and longevity of UK business Delivers significant financial synergies Strategic entry to US GoA One of world's most prolific basins Fully operated, oil weighted portfolio; exceptional team High margin, long-life assets; deep high-return drilling inventory Substantial production and cash flow growth Completion expected Q2 2026 Completion expected mid-2026 Completed February 2026 1 Before customary adjustments and deposit paid in 2025 Operational review Prioritising safety in everything we do Occupational Safety TRIR 1 (per million hours worked) Greenhouse gas emissions intensity 3 kgCO 2 e/boe 20 Q1 2026 saw two Tier 2 events (one in Mexico and one in Indonesia) All incidents are rigorously 0.7 1.0 1.1 1.3 18 28% 13 13 investigated with learnings shared Methane intensity remains below target of <0.2% 4 On track to halve gross operated emissions by 2030 (vs 2018 2023 2024 2025 Q1 2026 2023 2024 2025 Q1 2026 baseline) Harbour Peer 2 range Peer 2 average Harbour Peer 2 range Peer 2 average 1 TRIR stands for Total Recordable Injury Rate 2 Peer data (where available) from Aker BP, Apache, Murphy, Santos, Vår Energi, Woodside and Vista, and sourced from Annual Sustainability and/or ESG Reports. 3 GHGi reported on a net equity share basis. 4 Relates to our operated assets Production guidance narrowed upwards after strong start to the year Production WI, kboepd 500 506 480-500 kboepd (Previously: 475-500 kboepd) Other gas 50 Q1 2025 Q1 2026 FYF 2026 European gas Liquids 2026 FYF 2026 Q1 2026: Continued strong operational delivery Production of 506 kboepd in Q1 2026 (Q1 2025: 500 kboepd); April production of 520 kboepd Two-months' contribution from the US following completion of LLOG offsetting UK decline and Vietnam exit Norway outperformance: high reliability; strong delivery from latest Njord well and Harbour operated Gjøa satellites New projects/wells onstream in US, Norway, Argentina, Egypt Successful completion of planned maintenance in the US Operating cost of $12.8/boe (Q1 2025: $13/boe) Norway UK Argentina US Mexico Other Harbour Energy | Investor Presentation Delivering our highest return, most competitive projects ▪ Norway: Pipeline of high value projects on track supporting near term production including start up from Dvalin North, Irpa, Alve Nord, Idun Nord in 2026 ▪ UK: Farm in for 45% of Fotla oil and gas discovery; FID of two well development via the Harbour operated GBA hub targeted by YE 2026 ▪ Argentina: Multi-pad drilling at APE with nine wells to be connected in 2026 ▪ US GoA: FID of Who Dat East development targeted for Q3; 2 nd rig to arrive FYF2026 2026 before year end accelerating high return drilling and completion opportunities Harbour Energy | Investor Presentation Total capex $bn $2.2-2.4 bn Guidance reiterated 0.5 0.5 Q1 2025 Q1 2026 FYF 2026 Norway UK Argentina US Mexico Other 11 Decom P&D E&A Large and diverse 2C resource base underpinning material, sustainable cash flow Maturing the highest return, most competitive projects within our disciplined financial framework Material positions in large oil discoveries in Mexico and in a multi-TCF gas play in Indonesia Appointed operator of c.750 mmboe gross Zama; agreed to divest 5%, retaining 27.3% Optimising development concepts at Harbour operated Zama & Kan (Mexico) ahead of entering FEED Major, offshore growth projects (c.600 mmboe) High value, short cycle projects (c.700 mmboe) Infill drilling, tie-backs to infrastructure, mainly in Norway, US and UK Targeting FID of Who Dat East (US), Gjøa N/Ofelia, Cuvette (Norway) and Fotla (UK) developments in 2026 Recent 2C adds include Fotla (UK) and Omega Sør (Norway) Vaca Muerta, Argentina (c.600 mmboe) At APE, maturing future drilling locations, improving drilling efficiency and debottlenecking SESA, 6 mtpa LNG project: construction underway, RIGI incentives secured, Phase 1 due to start up end 2027 San Roque unconventional oil licence discussions ongoing; 16 well programme to start Q1 2027 2P reserves and 2C resources 1 bnboe 1.9 Key focus maturing 2C into 2P 1.4 Norway UK Argentina US Mexico Other 2P 2C 1 YE 2025, Proforma LLOG acquisition (completed 11 February 2026) and Waldorf and Indonesia transactions Continuing our strong track record of reserve replacement 2P reserves >100% reserve replacement ratio YE 2025- YE 2028 150% 250% YE17-YE21 YE21-YE25 bnboe 1.5 Argentina Mexico GoA Norway Other 1 0.5 Anticipated reserve additions 2026-2028 Short cycle, high return (GoA, Norway), major growth (Mexico) and shale (Argentina) Oil weighted additions with >50% of 2P reserves liquids by 2028 Greater operational control; operate >50% of reserves by 2028 Focus shifts to lower tax, lower cost basins with more running room; GoA, Argentina and Mexico >55% of reserves by 2028 0 YE 2017 YE 2021 YE 2025 Production LLOG/ Waldorf acqns 13 Organic additions YE 2028 Targeting breakevens of <$40/boe and <$5/mscf Delivering our highest return, most competitive projects to drive higher margin production Norway UK Argentina US Mexico Other Total capex $bn 2.5 Guidance $2.2-2.4bn Production WI, kboepd Guidance 480-500 kboepd 500 2.0 1.5 1.0 0.5 Strict capital discipline $2.0-2.3bn p.a. (2027-2030) 400 300 200 100 Growing higher margin production Maintain 475-500 kboepd (2027-2030) 0.0 2025 2026 2027 2028 2030 0 2025 2026 2027 2028 2030 Near term spend focused on high value, short cycle projects LLOG acquisition further high grades the portfolio Operational control supports significant optionality longer term Increasing volumes in US GoA, new production in Norway and Argentina and - over time - in Mexico offset decline in higher cost and tax UK 14 Business Unit review Q1 2026 production of 181 kboepd (62% gas) High operating margins ($12/boe opex) Leveraging infrastructure position to unlock capital efficient, short cycle developments New projects and wells support future production Proven E&A track record; recent discovery and success in Norway licensing round Project pipeline 2P reserves and 2C resources, mmboe (net) Approved developments Future projects Harbour operated 2026 oil discovery 50 25 Projects onstream <$5/mscf average breakeven for gas projects <$40/bbl average breakeven for oil projects 0 2030 Maria Phase 2 Solveig Ph 2 Dvalin North Irpa Idun N/ Alve N Snøhvit Future Gjøa N/ Ofelia Cuvette Adriana/ Sabina Storjo Omega Sør Bergknapp 2025 Norway: Resilient production and cash flow underpinned by pipeline of high value, near term projects Significant operational control Improved cost structure Selective high return, short cycle investments - e.g. Fotla farm in Optimisation of decommissioning costs Waldorf acquisition to drive improved FCF margin through 2030 Production WI kboepd Top quartile operating costs $/boe 20 15% 18 2024 2025 Q1 2026 17 155 153 149 2024 2025 Q1 2026 >90% Top quartile operating efficiency (2025, operated hubs) UK: Transformed free cash flow outlook driven by reduced cost base, improved capital efficiency & accretive M&A Argentina: Long life production with potential for material growth CMA-1: Long life conventional production with multiple tie-back options (e.g. Fenix) Significant growth potential in Vaca Muerta: APE (gas window, Harbour 23%) San Roque (oil window, Harbour 25%) SESA (Harbour 15%) a two-vessel c.6 mtpa LNG project, to start up end 2027 enabling access to global markets for our Argentina gas Production Q1 2026, WI kboepd 72 2P & 2C resources YE25, mmboe 722 266 Vaca Muerta Basin Aguada Pichana Este Argentina San Roque SESA LNG Site Río Negro Province Operated by Development of first phase of San Roque black oil targeted to start later in 2026 Production 2P reserves 2C resources CMA-1 TotalEnergies Operated by SESA CMA-1 (conventional) APE San Roque High margin production growth Production, WI kboepd Fully operated, oil weighted portfolio 75 Deep inventory of high return, low breakeven, infrastructure led investments 50 2 nd rig to arrive before year end 2026; FID of Who Dat East development targeted for Q3 2026 Best in class cycle time (discovery to first production) 25 among global peers (2021-2024) 1 Who Dat Buckskin Leon-Castile Other 23 Growing high margin production to 2030 underpinned by 18 year reserve life 4 Q1 2026 3 2026 2027 2028 2030 c.1/3 of GoA discoveries made by LLOG since 2014 2 Strong fiscal terms 23% blended tax rate 0 Production CAGR: >20% (2026-2030) Significant upside 0.6bn 2C + prospective resources 1 Source Rystad 2 Management estimate 3 Reflects LLOG production contributing from 1 February, averaged over Q1 4 Based on YE 2025 estimated 2P reserves and expected 2026 production Gulf of America: Large, long-life deepwater hubs with high-rate wells driving significant free cash flow growth through to 2030 LLOG acquisition further strengthens our portfolio of organic investment options >40% average weighted IRR of GoA capex (2026-28) 1 1 Harbour management estimates, IRR point forward as at 1 January 2026, assuming WTI at $60/bbl and Henry Hub at $4/mscf (2026 real) LLOG provides deep inventory of high return, near term investments 10-15 wells planned in Gulf of America 2026-2028 including at Leon-Castile and Buckskin and infrastructure-led exploration wells Leon 20 10 licences awarded in the GoA BBG 1 and BBG 2 bid rounds (all LLOG-operated) LLOG portfolio increases competition for capital within Harbour's global portfolio driving project high grading and FCF margin expansion Appointed operator of c.750 mmboe gross Zama oil development Agreed to divest 5% to subsidiary of Grupo Carso increasing stake of strategic partner with Harbour retaining 27.3% More capital efficient, phased FPSO-based Zama development plan agreed FEED at Zama and Kan to commence later this year Focus on lowering project breakevens, e.g. well optimisation, synergies High graded portfolio, exiting less competitive licences, e.g. Block 29 (Polok, Chinwol) Zama Phase I Early Production Plan (EPP) 2P reserves & 2C resources Zama Kan YE25, mmboe (net) 2P 40 2C 375 Mexico: Creating a scale and advantaged business built around two shallow water production hubs, Zama and Kan Financial review, guidance and outlook Against a volatile backdrop, Harbour well positioned BRENT PRICE DEVELOPMENT ($/BBL) TTF PRICE DEVELOPMENT ($/mscf) Large scale and diverse portfolio Strong cost focus and strict capital discipline Significant exposure to Dated Brent and European gas prices North Sea oil volumes priced at $85/bbl for Q1 and >$120/bbl during April Additional hedges secured via zero cost collars with attractive skews, especially for Eur. gas For Q2-Q4 2026 hedged 50% of Brent/WTI and 65% of Eur. gas economic exposure at average price floor-cap of $69-78/bbl and $11-15/mscf, respectively 1 23 150 25 125 20 100 15 75 10 Dated Brent 50 ICE Brent future 5 Q1 Pre-hedge realised price Q1 Post-hedge realised price $14.8/mscf $76/bbl $79/bbl $14.7/mscf January | February | March | April January | February | March | April Harbour Energy | Investor Presentation 1 Reflects completion of LLOG and assumes Waldorf transaction completes mid-2026 Significant free cash flow generation accelerating debt reduction Net debt 1,2 $ billion 0.05 6.3 4.4 2.7 0.7 Includes hybrid coupon and remainder of 2025 share buyback Post Q1 repaid drawn RCF balances and $240m of bonds 0.16 Reflects strong operational performance and Q2-Q4 weighting of capex and tax payments, partly offset by negative working capital build Net Debt 31 Dec 2025 LLOG Q1 FCF Equity distributions FX impact/ other Net debt 31 March Owing to rounding, totals do not match the sum of the component parts 1 Reflects $1.16/€ at 31 March 2026 and $1.175/€ at 31 December 2025 2 Pre swap; Net debt excludes unamortised fees and impact of cross currency swaps and includes amounts held in escrow Harbour Energy | Investor Presentation Improved FCF outlook driven by higher commodity prices $ billion c.1.4 0.6 2026 FCF (Jan 2026) Commodity prices 2026 FCF (May 2026) $65/bbl $11/mscf $80/bbl $13/mscf FCF sensitivity + $5/bbl Brent: + $170m + $1/mscf EU gas: + $150m 0.8 Improved 2026 production guidance and free cash flow outlook 2026 guidance includes LLOG and assumes Indonesia and Waldorf transactions completes end Q2 2026 2026 March guidance Q1 Actuals Updated guidance / Updated vs March guidance outlook / outlook Production kboepd 475-500 506 480-500 Unit opex 1 $/boe c.14.5 12.8 c.14.5 Total capex 1,2 $bn 2.2-2.4 0.5 2.2-2.4 Brent oil $/bbl 65 81 80 Euro gas $/mscf 11 13.5 13 Free cash flow 3 $bn 0.6 4 0.7 1.4 4 1 Assumes $1.35/£, $1.15/€ and NOK10/$ 2 Includes production and development, exploration and appraisal and decommissioning 3 Free cash flow (FCF) after capex, tax and before M&A/divestment proceeds and transaction costs, hybrid bond interest, debt repayment and shareholder distributions 4 Assumes mid-point of production and capex guidance . Strengthened portfolio delivers significant free cash flow growth FCF profile 1 $ billion 2026 FCF outlook more than doubled c.1.4 $80/bbl $13/mscf c.1.0 c.0.6 $65/bbl $11/mscf Delivering material FCF CAGR through 2030 1 Increasing high margin US GoA production driven by near term investment Significant financial synergies from 2027 driven by UK Waldorf acquisition Effective tax rate materially reducing as production shifts to lower tax countries Further cash flow margin improvement around the end of decade from US GoA and growth projects in Mexico 2026 2028 2030+ 1 2026 FCF outlook increased to $1.4bn to reflect $80/bbl and $13/mscf. Previous FCF outlook of $0.6 billion assumed $65/bbl and $11/mscf for 2026. From 2027, FCF reflects $70/bbl, $10/mscf escalated in line with costs at 2.5% per annum Outlook: delivering against our capital allocation priorities Net debt 1 $ billion Leverage Free cash flow 1 $ billion Distributions FCF payout ratio, % Increased 2026 FCF at $80/bbl & $13/mscf c.1.4 c.0.6 c.1.0 FCF of $1.4bn results in distributions of $600m at low end of 45-75% range 45% 40% Leverage currently <1x but 2027 leverage impacted by tax lag effect 75% YE26 YE28 YE30 2026 2028 2030+ 475-500 kboepd production <$15/boe operating costs $2.0-2.3bn capex p.a. from 2027 1 Investment grade balance sheet Investment grade credit profile Target <1.0x leverage through cycle c.$1.0bn debt reduction by YE28 1 2 3 Competitive shareholder returns 45-75% free cash flow payout 16.10 cents/sh ($300m) 2 base dividend Potential for additional returns Robust & diverse portfolio 2021-25 (Historical) 2026+ (New policy) 1 2026 FCF outlook of $1.4bn and YE 2026 net debt updated to reflect $80/bbl and $13/mscf. Previous FCF outlook of $0.6 billion and YE 2026 net debt assumed $65/bbl and $11/mscf for 2026. From 2027, FCF and net debt profile reflects $70/bbl, $10/mscf escalated in line with costs at 2.5% per annum 2 16.10 is per voting ordinary share; $300m includes $46 million base dividend paid on non-voting ordinary shares Why Harbour Energy? A track record of strategic, operational and financial delivery supported by active portfolio management and a world class team A large scale, diverse producing asset base with a competitive cost structure and exposure to Brent oil prices and European gas prices Production maintained at 475-500 kboepd to end of decade supported by high return projects in our c.20 years of organic inventory Strong free cash flow growth, rigorous capital discipline, investment grade credit Returns-focused with attractive distributions policy enabling deleveraging and reinvestment while ensuring shareholders benefit from our growing cash flow Harbour Energy | 28 Appendix Group realised prices and production Oil ($/bbl) HBR pre-hedge 79 HBR post-hedge 76 NGLs ($/bbl) Group NGLs 55 Liquids (oil & NGLs, $/bbl) HBR pre-hedge 75 HBR post-hedge 73 EU gas ($/mscf) HBR pre-hedge 14.7 HBR post-hedge 14.8 Other gas ($/mscf) Other 3.4 Q1 2026 realised prices Group production Q1 2026 kboepd, net Liquids (oil and NGLs) Gas Total Norway 69 113 181 180 UK 74 79 153 165 Argentina 5 67 72 74 US* 21 2 23 - Mexico 9 1 10 10 North Africa 5 27 32 33 Germany 19 10 29 29 SE Asia - 6 6 9 Total 202 304 506 500 Owing to rounding, totals do not match the sum of the component parts * Reflects LLOG production contributing from 1 February, averaged over Q1 Q1 2025 Total Hedging schedule As at 31 March 2026. Owing to rounding, totals do not match the sum of the component parts Q2-Q4 2026 FY2026 FY 2027 FY 2028 Transacted Average Transacted Average Transacted Average Transacted Avg price volume price volume price volume price volume EU/UK gas kboepd $/mscf kboepd $/mscf kboepd $/mscf kboepd $/mscf Swaps 61 11.0 59 11.4 20 10.3 7 8.7 Collars 28 11.7-20.0 26 11.3-20.0 28 8.8-15.6 6 8.1-14.9 Group 89 13.0 86 12.9 49 12.4 13 9.3 Brent/WTI kboepd $/boe kboepd $/boe kboepd $/boe kboepd $/boe Swaps 44 72 44 72 9 67 5 65 Collars 19 64-91 16 64-90 30 59-79 10 58-76 Group 63 77 60 77 39 75 14 71 (put-call) (put-call) Reflects transacted volumes rather than post tax / economic exposure. Collar ranges reflect the volume weighted average of put and call options respectively. Group totals reflect volume weighted average of traded swap/fixed price and, for collar structures, the forward curve at 31 March 2026 if forward curve pricing is between the cap and the floor or the floor/cap price if forward curve pricing is outside collar range. Adopting a payout ratio distributions policy Links shareholder returns directly to growing free cash flow and strengthens capital allocation framework 2022-2025: Fixed dividend 2026: Payout ratio approach 40% of annual free cash flow on average returned to shareholders through a fixed dividend and share buybacks Return 45-75% of annual free cash flow 1 Including initial base dividend of 16.10 cents/voting ordinary share ($300m) 2 Leverage <1.0x, payout towards top end; >1.0x leverage pay out towards lower end of range New policy takes effect immediately with 2025 final dividend of 8.05 cents/voting ordinary share; total 2025 distributions of $478m representing a 45% 2025 FCF payout Supports near term deleveraging and disciplined investment in attractive organic growth opportunities Potential for material distribution growth over time in line with free cash flow outlook 1 Free cash flow is after tax and before hybrid interest, debt repayment and divestment proceeds 2 Includes c.$46 million initial base dividend paid on non-voting ordinary shares Attention : This is an excerpt of the original content. 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