Harbour Energy PLC Trading and Operations Update (9768U)
29 Novembre 2023 - 8:00AM
UK Regulatory
TIDMHBR
RNS Number : 9768U
Harbour Energy PLC
29 November 2023
Harbour Energy plc
("Harbour" or the "Company")
Trading and Operations Update
29 November 2023
Harbour Energy plc provides the following unaudited Trading and
Operations Update for the nine months to 30 September 2023.
Operational highlights
* Production averaged 189 kboepd (2022: 207 kboepd),
split c.50% liquids, c.50% gas. Full year guidance of
185-195 kboepd is unchanged.
* Operating costs averaged $16/boe (2022: $14/boe) for
the period. Full year guidance unchanged at c.$16/boe,
with strong cost control offset by lower volumes.
* Strong safety record with total recordable injury
rate of 0.9 per million hours worked
* High return, short cycle, infrastructure-led UK
investment opportunities progressed, supporting
future production and cash flow
* Tolmount East production start-up underway,
increasing future rates from the Tolmount area
* Leverett discovery, close to Harbour's operated
Britannia infrastructure, successfully appraised with
good flow rates achieved; planned final appraisal
side track underway
* Talbot on track to deliver first oil, via the Harbour
operated Judy platform, around the end of 2024, with
two of the three development wells completed
* International growth projects advanced with the
potential to materially increase our reserve life
* The drilling of Layaran, the first of a multi-well
Andaman Sea (Indonesia) exploration campaign, is
ongoing. This follows the Timpan-1 gas discovery in
2022. Three additional prospects on the Andaman South
and Andaman II licenses will be drilled as part of
this campaign.
* Zama (Mexico) commercial agreements progressed with
preparation for FEED underway
* Kan (Mexico) appraisal plan submitted to the
regulator following the oil discovery in April with
drilling scheduled for 2024
* Continued progress on Harbour's CCS projects. For the
Harbour-led Viking project, this includes entering
FEED and the successful submission of the Development
Consent Order for the onshore pipeline, marking
important milestones for the project.
Financial highlights
* Estimated revenue for the period was $2.9 billion
with realised post-hedging oil and UK gas prices of
$77/bbl and 53 pence/therm, reflecting legacy hedging
put in place at the time of the Premier acquisition
* 2023 total capex guidance of c.$1 billion reiterated,
reflecting increased drilling activity in the second
half of the year
* Forecast 2023 free cash flow of c.$1 billion, after
expected total cash tax payments of $0.4 billion, and
before shareholder distributions, reiterated
* Shareholder distributions of c.$440 million completed
year to date. This includes c.$240 million of share
buybacks and an interim dividend paid in October of
c.$100 million. The dividend payment was in line with
our $200 million annual dividend policy and
represented a nine per cent dividend per share growth
year-on-year
* Net debt of c.$0.3 billion at period end, an increase
on half year mainly due to UK tax payments made in
the third quarter; potential to be net debt free in
2024 unchanged
* Successful outcome of RBL facility amendment and
extension on favourable terms with borrowing base
increased to $1.3 billion and maturity extended to
December 2029
Linda Z Cook, Chief Executive Officer, commented:
" We have continued to maximise the value of our UK oil and gas
portfolio and to progress our diversification opportunities in
Mexico, Indonesia and CCS while maintaining strong cost control and
capital discipline. This has enabled significant free cash flow
generation and a robust balance sheet, supporting material
shareholder returns over and above our base dividend.
We also continue to evaluate a number of material M&A
opportunities in line with our stated strategy, as we seek to build
a global and diverse oil and gas company. Recent large transactions
in our sector and our own discussions with potential counterparties
indicate that market conditions for M&A are improving. We
remain disciplined, balancing the return of excess capital to
shareholders with ensuring flexibility for meaningful, value
accretive M&A which would support shareholder returns over the
longer run."
Enquiries
Harbour Energy plc
Elizabeth Brooks, Head of Investor Relations
Tel: +44 203 833 2421
Brunswick
Patrick Handley, Will Medvei
Tel: +44 207 404 5959
Appendix 1: Group production
1 Jan - 30 Sept 2023 1 Jan - 30 Sept 2022
(net, kboepd) (net, kboepd)
Greater Britannia
Area 27 32
--------------------- ---------------------
J-Area 34 29
--------------------- ---------------------
AELE hub 20 27
--------------------- ---------------------
Catcher 19 19
--------------------- ---------------------
Tolmount 13 12
--------------------- ---------------------
East Irish Sea 6 8
--------------------- ---------------------
Elgin Franklin(1) 20 24
--------------------- ---------------------
Buzzard 11 15
--------------------- ---------------------
Beryl 14 11
--------------------- ---------------------
West of Shetlands(1) 13 15
--------------------- ---------------------
Other North Sea(2) 2 2
--------------------- ---------------------
North Sea 178 194
--------------------- ---------------------
International 11 13
--------------------- ---------------------
Total Group 189 207
--------------------- ---------------------
(1) West of Shetlands comprises Clair, Schiehallion and Solan.
(2) Other North Sea includes Galleon, Ravenspurn North, and
Johnston.
1 Jan - 30 Sept 2023 1 Jan - 30 Sept 2023
(net liquids, kboepd) (net gas, kboepd)
Greater Britannia
Area 9 18
----------------------- ---------------------
J-Area 16 18
----------------------- ---------------------
AELE hub 5 15
----------------------- ---------------------
Catcher 18 1
----------------------- ---------------------
Tolmount 1 13
----------------------- ---------------------
East Irish Sea 0 6
----------------------- ---------------------
Elgin Franklin(1) 8 12
----------------------- ---------------------
Buzzard 11 0
----------------------- ---------------------
Beryl 10 4
----------------------- ---------------------
West of Shetlands(1) 12 1
----------------------- ---------------------
Other North Sea(2) 0 1
----------------------- ---------------------
North Sea 89 89
----------------------- ---------------------
International 4 7
----------------------- ---------------------
Total Group 93 96
----------------------- ---------------------
(1) West of Shetlands comprises Clair, Schiehallion and Solan.
(2) Other North Sea includes Galleon, Ravenspurn North, and
Johnston.
Appendix 2: Hedging schedule(1)
2023 2024 2025 2026
Av.
Av. price Av. price price Av. price
Volume (p/th, Volume (p/th, Volume p/th, Volume p/th,
(mmboe) $/bbl) (mmboe) $/bbl) (mmboe) $/bbl mmboe $/bbl
UK
gas
Swaps 21.5 40 10.1 54 5.7 87 1.2 106
Collars 1.6 55-69 3.0 112-263 1.7 98-233 0.4 80-150
Oil
Swaps 11 74 7.3 84 3.7 77 0 0
--------- ---------- --------- ---------- ---------- ------- ------- ----------
(1) As at 30 September 2023
Appendix 3: 2023 guidance
2023 Guidance Actual 2023 Guidance
(as at Aug (1 Jan to 30 (as at Nov 23)
23) Sept 2023) Unchanged
Production (kboepd) 185-195 189 185-195
------------- ------------- ---------------
Operating costs ($/boe) c. 16 c. 16 c. 16
------------- ------------- ---------------
Total capex ($ billion) c.1.0 c.0.7 c.1.0
------------- ------------- ---------------
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