Harbour Energy PLC has released its unaudited Trading and Operations Update for the year ending 31 December 2023, providing insights into its business and financial highlights, as well as guidance and outlook for 2024 and 2025. The company's production averaged 186 kboepd, with notable achievements including the successful start-up of Tolmount East, significant gas discoveries, and momentum on UK CCS projects. The company also announced the acquisition of the Wintershall Dea asset portfolio.
In 2023, Harbour Energy PLC's production averaged 186 kboepd, with operating costs averaging c.$16/boe. The company improved its safety performance and achieved significant milestones in the UK and internationally, including the successful start-up of Tolmount East, significant gas discoveries, and momentum on UK CCS projects. The company also announced the transformational acquisition of the Wintershall Dea asset portfolio in December, with completion expected in Q4 2024.
Financially, the company reported revenue of c.$3.9 billion, estimated total capex of c.$1.0 billion, and estimated free cash flow of c.$1.0 billion. Shareholder distributions amounted to $441 million, and net debt reduced to $0.2 billion at year-end 2023.
For 2024, Harbour Energy PLC provided guidance, including production of 150-165 kboepd, unit operating cost of c.$18/boe, increased total capital expenditure of c.$1.2 billion, and estimated free cash flow of $0.2 billion. The company also expects to pay $200 million in dividends and anticipates being net debt free during H1 2024 but closing the year in a small net debt position.
Looking ahead to 2025, Harbour Energy PLC expects production to be similar to 2024, with less maintenance downtime and volumes from new wells and projects substantially offsetting natural decline. The company also anticipates significantly higher free cash flow compared to 2024, resulting in a sizeable net cash position by year-end.
The acquisition of substantially all of Wintershall Dea's upstream assets for $11.2 billion was announced in December 2023. The acquisition is subject to shareholder and regulatory approvals and is anticipated to complete in Q4 2024. As of 17 January 2024, Harbour had received irrevocable undertakings from shareholders representing more than 25% of its issued share capital to vote in favor of the acquisition.
Linda Z Cook, Chief Executive Officer, commented on the update, expressing optimism about the company's performance and the strategic acquisition, stating, "..."