Harbour Energy PLC on Thursday forecast increased production and an improved cash flow position as it continues to integrate Wintershall Dea GmbH.
The London-based oil and gas company predicts production of 450,000 to 475,000 barrels of oil equivalent per day in 2025, ‘materially’ higher than in 2024, reflecting a full year’s contribution from the Wintershall Dea portfolio and broadly stable production in the UK.
In 2024, production averaged 258,000 boepd, up 40% from 186,000 barrels in 2023, in line with guidance.
For 2025, unit operating costs are forecast of $14 per barrel of oil equivalent, ‘significantly lower’ than $16.5 per barrel in 2024.
Chief Executive Linda Cook commented: ‘2024 was a transformational year with the completion of the Wintershall Dea transaction delivering a step change in our scale and geographic diversification, improving our margins, increasing our reserve life and expanding our resource base significantly.’
Harbour Energy completed the $11.2 billion acquisition of Wintershall Dea last September.
The acquisition included Wintershall Dea‘s upstream assets in Norway, Germany, Denmark, Argentina, Mexico, Egypt, Libya and Algeria as well as the CO2 capture and storage licences in Europe.
On Thursday, Harbour Energy said the integration of Wintershall Dea is progressing ‘as planned’.
In 2024, Harbour Energy expects ‘significantly’ higher revenue of around $6.1 billion compared to $3.7 billion a year prior, driven by increased production.
Earnings before interest, tax, depreciation, amortization and exploration expense are forecast to rise to $4.1 billion in 2024 from $2.7 billion.
Pre- and post-tax income are anticipated to be impacted by material non-cash accounting charges largely driven by adverse changes to the UK fiscal regime, the firm added.
Capital expenditure is expected to have increased to $1.8 billion in 2024 from $1.0 billion a year prior. A further increase to $2.4 billion to $2.6 billion is projected in 2025, reflecting the addition of Wintershall Dea partially offset by ‘materially’ reduced capital investment in the UK and lower exploration and appraisal spend in Indonesia and Mexico.
The firm expects to be broadly free cash flow neutral in 2024, and forecasts free cash flow of $1.0 billion in the coming year.
Harbour Energy expects to pay $455 million in total dividends, comprising a $227.5 million final dividend for 2024 and a $227.5 million 2025 interim payout.
Shares in Harbour Energy were 6.8% lower at 268.90 pence each in London on Thursday morning.
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