Harbour Energy Unveils 2024 Results Following Transformational Wintershall Dea Acquisition, Shares 2025 Outlook

January 23, 2025 12:16 AM PST | By Team Kalkine Media

Harbour Energy Unveils 2024 Results Following Transformational Wintershall Dea Acquisition, Shares 2025 Outlook — Image source: Shutterstock

Operational Highlights

Production Surge

Harbour Energy achieved a 40% increase in production, averaging 258 kboepd compared to 186 kboepd in 2023. This increase aligns with guidance and reflects the integration of the Wintershall Dea portfolio, contributing a diversified mix of 40% liquids, 45% European gas, and 15% non-European gas. On a pro forma basis, production stood at an impressive 479 kboepd.

Unit operating costs remained steady at $16.5/boe, demonstrating operational efficiency amid rising output.

Project Developments

Key projects such as Fenix (Argentina) and Talbot (UK) began operations successfully, alongside advancements in Norway (Skarv and Njord) and the UK (Greater Britannia and AELE). Future production growth is supported by new developments, including Maria Phase 2 and Dvalin North in Norway, as well as a drilling campaign in Argentina’s Vaca Muerta play.

Exploration Success

Harbour achieved successful outcomes from six infrastructure-led wells in the North Sea, including the Storjo and Sabina wells in Norway and the Gilderoy and Jocelyn South discoveries in the UK, with the latter slated to begin production in Q1 2025.

Carbon Capture Progress

The company took its first final investment decision (FID) for a carbon capture and storage (CCS) project with Greensand Future in Denmark. This milestone reflects Harbour’s growing focus on building a competitive, long-term CCS portfolio.

Strategic Portfolio Management

Harbour sold its Vietnam business for $84 million, a move consistent with its strategy to deploy resources efficiently.

Financial Performance

Revenue and Profit Growth

Driven by increased production, revenue surged by 65% to approximately $6.1 billion (2023: $3.7 billion). Realized oil prices averaged $82/bbl, while European and non-European gas prices were $11/mscf and $4/mscf, respectively. EBITDAX rose to $4.1 billion, a 52% increase from $2.7 billion in 2023.

Capital expenditure rose to $1.8 billion, up from $1.0 billion in 2023, including $0.3 billion allocated to decommissioning. Despite acquisition-related costs and an unplanned outage at the East Irish Sea in Q4, Harbour maintained a stable net debt of $4.7 billion by year-end, supported by favorable exchange rate movements.

Debt Restructuring and Shareholder Returns

The company replaced its reserves-based debt facility with more flexible, lower-cost unsecured bank facilities, resulting in upgraded investment-grade credit ratings. Harbour distributed $0.2 billion to shareholders, bringing total returns over three years to $1.2 billion.

2025 Outlook

Production and Cost Guidance

Harbour expects production to rise to 450-475 kboepd in 2025, driven by a full year of Wintershall Dea contributions and stable UK operations. Unit operating costs are projected to fall to approximately $14/boe.

Capital Expenditure and Free Cash Flow

Capital expenditure is forecasted at $2.4-2.6 billion, reflecting expanded Wintershall Dea operations but offset by reduced UK and exploration spending. At an oil price of $80/bbl and European gas prices of $13/mscf, Harbour anticipates free cash flow of approximately $1.0 billion.

Shareholder Returns

The company plans $455 million in dividends, comprising $227.5 million each for 2024 final and 2025 interim payouts, in line with its enhanced dividend policy.

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