Harbour Energy plc
Investor presentation
May 2024
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 in the future or such words and words of similar meaning as "ambition", "anticipates", "aspire", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential", "targets", "goal" or "estimates". Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, these statements are not guarantees of future performance and are subject to a number of risks and uncertainties and actual results, performance and events could differ materially from those currently being anticipated, expressed or implied in such forward-looking statements. Factors which may cause future outcomes to differ from those foreseen in forward-looking statements include, but are not limited to, those identified in the "Risks and Uncertainties" section of the Group's Annual Results. Forward-looking statements contained in this presentation speak only as of the date of preparation of this presentation and have not been audited or otherwise independently verified. Past performance should not be taken as an indication or guarantee of future results and no representation or warranty, express or implied, is made regarding future performance. The Group therefore cautions against placing undue reliance on any forward-looking statements. Nothing in this presentation should be construed as a profit forecast.
Statements in this presentation reflect the knowledge and information available at the time of its preparation. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking, including to release publicly any updates or revisions to any statements contained in this presentation to reflect any change in the
Group's expectations or any change in events, conditions or circumstances on which any such statement is based.
This presentation does not constitute or form part of any offer or invitation to purchase any securities of any person nor any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any such securities, nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding any securities.
Harbour Energy |Investor Presentation | 1 |
A pure play upstream global oil & gas producer
Safe and responsible | High quality, cash | Portfolio of strategic | Robust financial position, |
operations | generative portfolio | investment opportunities | strict capital discipline |
Playing a significant role in | Targeting high return, short | Organic diversification well | Supports competitive |
the energy transition | cycle drilling opportunities | underway | shareholder returns and |
M&A optionality |
Building a global, diversified oil and gas company via disciplined M&A
Transformational acquisition of Wintershall Dea asset portfolio announced December 2023, in line with strategy
- Ensure safe, reliable and environmentally responsible operations
- Maintain a high-quality portfolio of reserves and resources
- Leverage our full cycle capability to diversify and grow further
- Ensure financial strength through the commodity price cycle
c.500 kboepd
186 kboepd | ||||||||||
175 kboepd | ||||||||||
137 kboepd | ||||||||||
Harbour founded | Shell UK | Conoco UK | Largest UK O&G | Pro forma Harbour | ||||||
Premier merger | (Wintershall Dea | |||||||||
by private equity | transaction | transaction | producer | |||||||
Acq.) | ||||||||||
2014 | 2017 | 2019 | 2021 | 2023 | 2023 | |||||
1 Acquisition of substantially all of Wintershall Dea's upstream assets announced 21 December 2023, expected to complete Q4 2024
Harbour Energy | Investor Presentation | 3 |
Harbour at a glance
A global independent O&G company focused on value creation, cash flow and distributions
Our purpose is to play a significant role in meeting the world's energy needs through the safe, efficient and responsible production of hydrocarbons, while creating value for our stakeholders.
c.$1 billion
(sh. distributions since 2021)
Norway
UK
MexicoMexico | ||
186 kboepd | c.$16/boe | Vietnam |
Vietnam | ||
Production | Operating cost | |
(2023) | (2023) | |
c.$1.0 bn | $1.0 bn1 | Indonesia |
Total capex (inc.decom) | Free cash flow | |
(2023) | (2023) | |
$0.2 bn | Net Zero 2035 | Harbour existing portfolio |
Net debt | Commitment2 | |
(2023) | ||
1 FCF is free cash flow after tax and pre-distributions. 2 Harbour's Net Zero goal is Scope 1 and 2 emissions on a gross operated basis |
Harbour Energy | Investor Presentation | 4 |
Q1 2024 highlights
Delivering our base business while progressing the transformational Wintershall Dea acquisition towards completion
Maximising value of our production base
- Q1 production of 172 kboepd
- Drilling at Callanish; Talbot on track for year-end start up
International growth and diversification
- Andaman Sea exploration campaign further momentum
- Good progress in the FEED phase for Viking CCS
Strong financial position; capital discipline
- Net debt reduced to $0.1bn; RBL remains undrawn
- 9% year on year dividend growth
Transformational acquisition of WDEA assets
- Significant progress on approvals, incl. German FDI clearance; Financing workstreams completed
Chart shows Harbour's annual reported production.
Harbour Energy | Investor Presentation | 5 |
Operational review
Maximising the value of our production base
A focus on safe and responsible operations
Further improvement in our safety record with no lost time injuries or serious process safety events during 2023
Safety is our top priority
- Building a strong safety record and culture
- No significant injuries or serious process safety events
- Significant reduction in high potential incidents
Strong occupational safety record | Improved process safety performance |
TRIR (per million hours worked)1 | Events (Tier 1 and Tier 2)1,2 |
Tier 2 | |||||
Tier 1 | |||||
1.3 | 2 | ||||
No lost time | |||||
injuries | |||||
0.8 | |||||
0.7 | |||||
1 | No Tier 1 or | ||||
1 | 2 events | ||||
0 | |||||
2021 | 2022 | 2023 | 2021 | 2022 | 2023 |
1 Safety KPIs are reported on a gross operated basis, including appointed operator assets Catcher and Tolmount 2 Loss of Primary Containment (LOPC) incidents are categorised as Tier 1 or Tier 2 events as defined by IOGP (The International Association of Oil & Gas Producers)
Harbour Energy | Investor Presentation | 7 |
Addressing our environmental impact
Producing oil and gas responsibly
2018
2023 highlights
2025
<0.2% Methane
Intensity1
2030
Zero routine flaring
50% reduction in GHG
emissions2
2035
Net Zero2
GHG emissions
mt CO2e (gross, operated, Scope 1 and 2)
c.30%
1.8
1.3
20182023
Harbour has a steady UK programme of decommissioning wells and infrastructure
-
Executed four emission reduction projects with the impact of lowering
Harbour's 2023 gross operated emissions by 54 kt - Plugged & abandoned seven wells; removed several subsea structures
- 97% recycling rate of removed infrastructure achieved
- Viking CCS targeting 10 mtpa of CO2 by 2030 and 15 mtpa by 2035
1 OGCI methane intensity target 2 Gross operated scope 1 & 2 GHG emissions vs a 2018 baseline
Harbour Energy | Investor Presentation | 8 |
2024 production reflects high level of planned shutdowns and timing of new wells on-stream
2025 production expected to be similar to 2024 with increased volumes from new wells and fewer planned outages
Production
kboepd | Impacted by deferred | 2024 guidance | Increased volumes from |
drilling at non-operated hubs | 150-165 | 2024 capital programme |
kboepd
186
Unusually high
planned shutdowns
Normal planned
maintenance levels
2023 | Natural | Vietnam | Production | New | 2024 | Natural | Vietnam | Production | New | 2025 |
decline | disposal 1 | efficiency | wells | decline | disposal1 | efficiency | wells |
1 Sale of Vietnam business is assumed to complete H1 2024
Harbour Energy | Investor Presentation | 9 |
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Harbour Energy plc published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 06:04:09 UTC.