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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Harbour Energy Plc | HBR | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| -1.10 | -0.39% | 281.40 | 12:37:40 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 280.80 | 278.90 | 283.10 | 282.50 |
| Industry Sector |
|---|
| OIL & GAS PRODUCERS |
| Top Posts |
|---|
Posted at 19/3/2024 16:13 by farmerjohn1 Yahoo Finance Tue, 19 March 20241 ex-FTSE 100 stock that I think will get promoted soon Each quarter, the FTSE 100 and FTSE 250 have a reshuffle. Based on the rise and fall of the market cap of a stock, it could get promoted or relegated from either index. The largest companies sit in the FTSE 100. Here’s one firm that used to have a seat at the top table that I think could return shortly. In the hot seat: I’m talking about Harbour Energy (LSE:HBR). Back in late 2022, it was demoted out of the main index down to the FTSE 250, which is where it currently sits. The business has been performing well recently, with the share price up 11% over the past year. Back in late December, the stock jumped on news that it had agreed to buy the upstream assets of German oil and gas producer Wintershall Dea. This gives Harbour Energy a much broader asset base around the world and will help for diversification purposes. Habour Energy also has momentum when I consider the rising oil price. Brent crude recently hit levels not seen since last October and is above $81 per barrel right now. Should this continue to move higher into the summer, it should support higher earnings from the business. Why promotion could be close: From purely a numbers stand point, the stock could be due to rise up to the FTSE 100 soon. It currently has a market cap of £2.14bn. In comparison, St. James’s Place (which is in the FTSE 100) has a market cap of £2.33bn. Obviously we’ll have to wait for the final figures come the next quarterly rebalancing, but it’s clear that Harbour Energy isn’t far away. Even if it doesn’t quite make it this time, the trajectory of the share price should mean that it will get to the top table at some point this year. Granted, past performance is no guarantee of future returns. But if the share price keeps rising, the market cap should also increase. As a result, this should help it to be in contention versus FTSE 100 stocks that are falling in value. How it could help the share price: One of the benefits that a promotion would bring is the buying demand from index funds. A FTSE 100 index fund has to purchase any new stock, and sell any that get demoted. This naturally acts to help the share price, at least in the short term. Even though FTSE 250 index funds would sell Harbour Energy shares in this case, the index tracker market for the FTSE 100 is vastly larger than the FTSE 250. Further, getting back to the FTSE 100 would give Harbour Energy more publicity and potentially open it up to new investors. For example, I know some of my friends that only want to invest in the main index. Of course, I shouldn’t simply buy the stock because it might get promoted. Rather, this is a side benefit. The main reason I’d look to buy would be due to the fundamentals of the business. As a result, it’s a stock that I’m thinking about buying shortly. |
Posted at 07/3/2024 14:16 by cashisking76 Proactive Investors:Harbour Energy reports results ‘in line’ as it works to close Wintershall deal Harbour Energy PLC (LSE:HBR) reported production in line with expectations, whilst its financial results statement reflected a business in steady state ahead of its next phase of consolidation. Harbour, which was formed in 2021 through the combination of London-listed Premier Oil and private equity North Sea firm Chrysaor, is now working to close its deal to acquire $11.2 billion of upstream assets from Germany’s Wintershall. Adding substantial operations in Norway, Germany, Argentina and Mexico to its existing portfolio of assets in the North Sea, Asia and Africa, the deal promises to create “one of the world's largest and most geographically diverse independent oil and gas companies” The company, today, noted “significant progress” toward closing the transaction. It expects to publish a prospectus and hold necessary shareholder meetings in the second quarter, and it is progressing through its checklist of regulatory and legal approval processes. It has, so far, successfully received approval from certain bondholders, as needed, and has successfully agreed syndication for financing facilities. Harbour said it continues to expect the deal’s completion by the end of 2024. In regards to its current business, the company reported average production of 186,000 barrels of oil equivalent per day, noting an average operating cost of $16 per barrel – with both metrics described as within guidance and forecast. Revenue was reported at $3.7 billion, down from $5.4 billion, with the company citing the reduction from exceptionally prior high gas prices for the decline. Profit before tax reduced to $600 million, from $2.5 billion, and after-tax adjustments the company reported a $32 million profit. Chief executive Linda Cook, in her accompanying comments, highlighted Harbour’s cash flow generation, as well as its growth opportunities and carbon capture and storage (CCS) projects. "Harbour materially advanced its strategy during 2023,” she said in the statement. “We improved our safety performance, generated material free cash flow, and progressed our international growth opportunities and CCS projects, while maintaining our capital discipline. “This enabled continued shareholder returns over and above our base dividend while retaining the flexibility that allowed us to announce a transformational acquisition in December.” Cook added: "We remain focused on the successful completion of the Wintershall Dea acquisition and the ongoing safe and efficient management of our existing portfolio. “We are excited about our future as we look to continue to build a geographically diverse, large scale, independent oil and gas company focused on safe and responsible operations, value creation and shareholder returns." |
Posted at 14/2/2024 16:55 by back2basics1 Once this deal is closed/dusted by around Q4 this year the new HBR will be similar to Aker BP in size/production and it’s share price will eventually be trading closer to ~£6+ mark minimum, fundamentals/maths here is so crystal clear, markets often provide the opportunities but only for patient investors.Aker BP has a ~$16 Billion market cap at the moment, DYOR: Harbour Energy - Wintershall DEA deal creates ‘challenger&rs |
Posted at 26/1/2024 06:30 by onlylongterm9 Energy Voice:Harbour confident in Wintershall Dea deal despite sanction concern Harbour will emerge with “stronger credit, we expect to reach investment grade credit on completion, which will give us access to lower-cost capital for future growth”. One reason it will take Harbour Energy until the end of the year to close its Wintershall Dea acquisition is the sheer amount of approvals from governments and regulators. Harbour is buying the international E&P in an $11.2 billion transaction. This will include $4.15bn in the transfer of Harbour equity to Wintershall Dea’s owners. As a result, BASF will hold 46.5% in Harbour, based on its 73% stake in Wintershall Dea. LetterOne will have 15% in Harbour. Bringing LetterOne into the company’s shareholder register is likely to prove a particular test. Head of investor relations Elizabeth Brooks was unconcerned about the impact, though. She was speaking at Pareto’s annual E&P conference in London. The Russian company’s stake will be non-voting, she explained, and it will not receive any seats on the Harbour board. BASF will have two seats on the Harbour board. “LetterOne is not sanctioned,” Brooks said, “but certain of their minority shareholders are sanctioned. We wanted to structure the deal carefully to ensure LetterOne had no influence over Harbour.” Mikhail Fridman and Petr Aven, both sanctioned, hold less than 50% in LetterOne. They stepped down from the company’s board in March 2022. The executive said the company had talked through this structure with its banks and committees and “this is a structure they are comfortable with”. The process of approvals for the Wintershall Dea falls into “three buckets”, Brooks continued. Mexico and the European Union will need to clear the deal on anti-trust grounds. In the UK and Germany, there is a requirement for foreign investment approval, while the third bucket covers regular upstream consents. “We’re confident” in the approval process, she continued. “There is no one approval that is keeping us up at night.” BASF has set out plans to exit the oil and gas sector – a move reflected in its statement at the time of announcing the deal. The German concern is subject to a six month lock up, but Brooks said Harbour expected it to sell down its position over time. LetterOne, on the other hand, “wants to stay invested”. The entry of BASF into Harbour’s ownership opens up the need for UK approval, under the National Security and Investment Act. “That is the opportunity that the UK government can use to look at the LetterOne position. But we don’t see a risk there, we have good engagement with the government.” Credit grade Harbour produced 186,000 barrels of oil equivalent per day in 2023. This is expected to fall to 150,000-165,000 boepd in 2024. Brook’s explained that planned shutdowns and deferred wells would drive this, while it also expects to complete the sale of its Vietnam asset in the first half. Stripping out the Wintershall impact, Harbour’s production would be flat in 2025 from 2024. Adding the deal in, though, will be transformational for Harbour. It will have around 500,000 boepd of production and triple its reserves, increasing its reserve life to eight years. Meanwhile, opex will fall to $11 per barrel, from $18, and emissions intensity per barrel will also reduce. It is not just a question of increasing in size, Brooks said. Harbour will emerge with “stronger credit, we expect to reach investment grade credit on completion, which will give us access to lower-cost capital for future growth”. |
Posted at 18/1/2024 13:15 by back2basics1 Once this deal is closed/dusted by around Q4 this year the new HBR will be similar to Aker BP in size/production and it’s share price will eventually be trading closer to ~£6+ mark minimum, fundamentals/maths here is so crystal clear, markets often provide the opportunities but only for patient investors. |
Posted at 05/1/2024 10:20 by farmerjohn1 By James Beard, The Motley Fool, 5 January:This FTSE 250 stock could soar 30% in 2024! Our writer explains why he’s expecting big things — over the next 12 months — from the stock of the FTSE 250’s largest oil and gas producer. Harbour Energy (LSE:HBR) was the second-best performer on the FTSE 250 in December 2023. Its shares ended the month 38% higher, largely due to the announcement of an acquisition that will transform the scale of the energy producer. But I think the stock has the potential to climb higher. If my reasoning is correct, it could soar by 30% in 2024. Here’s why. The sum of the parts On 21 December 2023, Harbour announced that it was to acquire the upstream assets of Wintershall Dea in a deal worth $11.2bn (£8.86bn at current exchange rates). The transaction will be funded through a combination of cash (£1.71bn), the issue of new shares (£3.28bn), and the taking on of some of Wintershall’s debt (£3.87bn). Prior to the news being released, Harbour was valued by the stock market at £1.89bn. Therefore, in theory, the new group should be worth £6.88bn — the combined pre-acquisition value of both companies (£10.75bn) less the value of the loan notes. The current owners of Wintershall will receive 921.2m new shares, bringing the total post-transaction number in issue to approximately 1.69bn. The share price should therefore be 407p — a premium of approximately 30% to its current value. Am I missing something? But this begs the question, why are Harbour’s shares still changing hands for around 315p? I think there are six possible explanations for this. Firstly, the deal has yet to be finalised. Completion is not expected until the final quarter of 2024. Second, the acquisition is to be part-funded through the issue of new shares, which have been valued at 360p. Although higher than today’s share price, it’s still well below my theoretical price. The third reason could be that profits from the North Sea are subject to a huge tax rate of 75%. And there’s no commitment from the UK’s two largest political parties to reduce this. Next, earnings from the oil and gas industry are notoriously volatile. Fifthly, ethical investors don’t want anything to do with the sector. And finally, the target company is privately owned. There’s less information in the public domain about its financial performance. It might take investors some time to assess whether the deal is a good one. To try and help overcome this problem, figures have been produced by the two companies illustrating what the group would have looked like in 2022. Combined EBITDAX (earnings before interest, tax, depreciation, amortisation, and exploration costs) would have been $10.3bn (£8.15bn) for the 12 months ended 31 December 2022. That’s a 157% uplift on Harbour’s earnings. If its pre-acquisition share price was increased by the same amount, its stock would be changing hands for over 600p! Some final thoughts Setting aside the issue of what the fair value of the new group should be, the directors have promised to increase the dividend per share by 5%. And there will be other benefits too. The deal will help expand Harbour’s geographical footprint. Also, its reserves will more than double. And it will lower the operating cost per barrel of oil equivalent by over 25%. Even if the share price doesn’t get close to 407p, as an existing shareholder, I’ll be happy with the additional passive income. The improved earnings potential should also help ensure that the dividend is sustainable over the long term. |
Posted at 29/12/2023 12:16 by luckyjoe999 Post from lse bb today:miles44 Posts: 442 Price: 309.30 No Opinion RE: 6 week coil chart pattern Today 11:24 I honestly thought that the share price would go substantially lower from the highs of around 315 because the majority of market participants between Christmas and New Year (calm period) normally are us retail investors. And I thought that at least some will be ready to sell part of their holding (or all) and personally know some former holders who sold just because their old sell limit got activated the day it rose 31 %. As for the BIG money to flow in that´s going to happen in the first 2 weeks of January. Fund managers aren´t active right now and as Linda stated the 21st, even some analysts had to be reactivated for the webcast, already being in Christmas holidays. So no-one should over-estimate any "share price movement" since the 21st - the only thing that has actually happened is that the share price has astonishingly held up very nicely which for me indicates that at least 1 or 2 major market participants are collecting some shares at current prices. As I said: the big money is going to get active on this stock in the first 2 weeks of January. And lets see what share prices we´ll see then ... you all have a good, happy and successful 2024 :) Was a pleasure writing with all :) Fingers crossed for HBR 600 p in 2024 :) |
Posted at 23/12/2023 17:28 by wolfofhounslow Hmmmm....Some window dressing at Harbour Energy's #HBR 'acquisition' of Wintershall Dea. It is actually a reverse acquisitionWintersha |
Posted at 23/12/2023 07:21 by tyler19 PDO, post merger Harbour will be a highly cash generative business and combined with an investment grade credit rating, it will attract a lot of buyers, even if BASF decide to sell early, which I don’t believe they will. It’ll be similar to Shell where some institutional investors move out of O&G but the share price continues to rise. Good luck! |
Posted at 25/8/2023 12:58 by kenmitch Warren Buffett likes some buybacks. I.e where he thinks they will help the share price. Sometimes they do but usually it’s when buybacks are done when the share looks too cheap and when the Company can afford to spend £Billions buying back an enormous number of their shares.E.g the likes of Apple. And in the UK, NEXT,who have spent so much on buybacks that they’ve halved the share count to the benefit of the share price AND NEXT now only have held the number of shares for their dividend payouts. So that kind of buyback can help the share price and reward shareholders. But so many Companies can’t afford huge buybacks and go for token buybacks that don’t help the share price and are a waste of money. Unfortunately that’s the case with Harbour’s buybacks. Ask yourself the simple question. Have Harbour’s buybacks with a higher share price, or are you like me, currently holding HBR at a loss? Big investors prefer buybacks to dividends for tax reasons as explained in that Warren Buffett link. What bb posters on this and so many other bbs and threads don’t get is that for the average small investor, tax on dividends is NOT an issue if the shares are held in ISAs and so for us ordinary folk dividends and specials that DO reward us with REAL cash are MUCH better for us than buybacks. A lot of Companies buying back don’t understand them either and take the advice of their advisers and big investors who, wrongly imo, assure them they are a wise thing to do. |
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