Harbour Energy Share Discussion Threads

[monkeybusiness1] 16/4/2024 11:39

Top ten crude oil upcoming fields in North America

1. Zama

Zama is located in the Gulf of Mexico, Mexico. This upcoming crude oil field is owned by BASF, Harbour Energy, LetterOne Holdings, Petroleos Mexicanos and operated by PEMEX Exploracion y Produccion. Production from this field is expected to begin in 2024 and is forecasted to peak in 2026 at approximately 0.13mmbpd of crude oil and condensate. Based on GlobalData estimates, production will continue until the field reaches its economic limit in 2053.



“Zama oil field is located approximately 60km off the coast of Tabasco, Mexico, in the Block 7 of Sureste Basin, Gulf of Mexico. Estimated to hold up to two billion barrels of oil-equivalent, it is considered to be one of the world’s biggest shallow-water oil discoveries in the past 20 years.”

[crystball1] 16/4/2024 11:19

Yes, they are well placed. What value is attached to the Zama oil field? Would they have any interest in the North Falkland basin if this was developed?

[luckyjoe999] 16/4/2024 11:02

Post from lse bb today:

sittingduck11
Posted in: HBR
Posts: 22
Price: 292.00
No Opinion
Today 09:17

Harbour Energy - a review

To recap on managements performance and progress since Harbours inception -

1. Paid down over 90% of the debt, which amounted to 150% of the market cap. In doing so they have protected shareholders and the company. Oil could fall to $40, Harbour would survive thanks to this action.

2. Returned billions back to shareholders, introducing a sizable dividend that is comfortably covered by earnings and that continues to rise, AND bought back nearly 20% of the shares, returning more value to shareholders in a non taxable way.

3.Embarked on one of the boldest and ambitious takeover, buying a company five times their size, diversifying their portfolio all over the world which as well as offering shareholders protection from cowboy governments (no one saw the WF tax coming) will also significantly increase earnings.

Outstanding work, so far.

[luckyjoe999] 16/4/2024 07:37

Post from lse bb:

theancientmarine
Posted in: HBR
Posts: 120
Price: 289.50
No Opinion
15 Apr 2024 15:11

April 12 RNS - Consecutive HBR Director Buys

Now great to see the recent consecutive director Buy-Ins here:

"Harbour announces that Louise Hough, Independent Non-Executive Director, has purchased 6,800 ordinary shares in the Company ("Ordinary Shares") at an average price of 288.9 pence per Ordinary Share."

[onlylongterm9] 16/4/2024 07:28

Yahoo Finance, 15 April 2024
“Is a comeback on the cards for this FTSE 250 stock?”

Harbour Energy (LSE:HBR) is a FTSE 250 stock that looks set to re-join the FTSE 100 in 2024. Not because of exceptional growth in its share price but due to an impending deal that’s likely to transform the scale of its operations.

Although the transaction is still subject to shareholder and regulatory approval, both are expected to be forthcoming.

The largest energy producer in the North Sea has agreed to acquire the upstream assets of Wintershall Dea. The transaction will be funded through a combination of cash (£1.7bn), the issue of new shares (£3.3bn), and the taking on of debt (£3.9bn). Excluding the loan notes, the company is valued at £5bn.

Add this to Harbour Energy’s current market cap of £2.2bn and it should be enough to see it return to the premier league of listed companies. The company was previously relegated from the index in December 2022.

Under the proposed terms, the current owners of Wintershall will receive 921m new shares, bringing the total post-transaction number in issue to approximately 1.69bn. The share price should then be 426p — a premium of approximately 48% to its current value.

The deal is expected to increase Harbour Energy’s annual production by 2.5 times and improve its margin. Post-merger reserves should nearly quadruple.

[anhar] 15/4/2024 16:29

Sterling value of 2023 final US13¢ divi announced: 10.4434p

[luckyjoe999] 09/4/2024 16:07

Post from lse bb today:

Kokomo
Posted in: HBR
Posts: 389
Price: 296.50
No Opinion
Today 11:20

HBR Shorts Now Rapidly Closing Positions, Again!

Once again, always excellent to note, even further reductions in HBR Short positions as noted here today, now this being the THIRD consecutive/back to back rapid reduction by GLG Partners LP (3, 4, and 5 April 2024).

[ashkv] 08/4/2024 17:39

Per Full Year 2023 Results ->

"The Acquisition is subject to Harbour shareholder approval and we plan to publish a prospectus and shareholder circular setting out the details of the shareholder meeting to approve the Acquisition in the second quarter of 2024. Harbour has received irrevocable undertakings from shareholders which, as at 6 March 2024, represented c.35 per cent of our issued share capital to vote in favour of the acquisition."

[ashkv] 08/4/2024 17:37

Acquisition of Wintershall Dea Asset Portfolio

§ On 21 December 2023, Harbour announced the acquisition of substantially all of Wintershall Dea's upstream assets for $11.2 billion. The acquisition is subject to shareholder and regulatory approvals and is anticipated to complete in Q4 2024

- In Q2 2024, Harbour plans to publish a prospectus and shareholder circular which will include historical financial information and an independent valuation of 2P reserves for the Wintershall Dea assets. They will also set out the details of the shareholder meeting to approve the Acquisition

- As at 17 January 2024, Harbour had received irrevocable undertakings from shareholders currently representing more than 25% of its issued share capital to vote in favour of the acquisition

[ashkv] 08/4/2024 17:19

Fingers crossed HBR publish soon the merger prospectus as they had earlier guided for April 2024!!!

Depressing share price given where oil is :(

[luckyjoe999] 08/4/2024 08:27

Post from lse bb:

Kokomo
Posted in: HBR
Posts: 387
Price: 292.00
No Opinion
5 Apr 2024 18:42

Further Reductions In HBR Short Positions Noted

Always excellent to note, further reductions in HBR Short positions as noted here today, now this being the second consecutive/back to back reduction by GLG Partners LP (3 & 4 April 2024).

[monkeybusiness1] 05/4/2024 11:34

Today’s RNS - Harbour Energy Director shares purchases, which is always excellent to see:

“Harbour announces that Alan Ferguson, Independent Non-Executive Director, has purchased 10,000 ordinary shares in the Company ("Ordinary Shares") at an average price of 283.39 pence per Ordinary Share.

As a result of this purchase of Ordinary Shares, Alan Ferguson has an interest in 24,203 Ordinary Shares, representing 0.003% of the Company's issued share capital.”

[farmerjohn1] 05/4/2024 08:25

Slowly but now surely HBR Shorts have just started to close positions, and $90+ Brent in place should help bring about lot more closures here going forward:

[husbod] 29/3/2024 18:25

Can't blame LC for the cretinous EPL which has hit us and other North Sea oilers really hard.Enquest's results and comments were equally bad.I've been looking at Ithaca (used to be a holder many years ago and made some decent money) and they're looking at expanding their portfolio just like us except they are increasing their NS exposure which doesn't seem logical with the current tax regime.At least if our strategy comes off we will have assets outside the UK and LC will have pulled off a great deal imo.

[brazilnut1] 29/3/2024 14:43

So linda cook took a pay cut to 2.4m pa. What a shame. Talk about rewarding failure. Sickening for holders that share price has fallen 50% in 2 years.

[the millipede] 28/3/2024 09:38

Keep looking in here but you are right BB. UK oil and gas is currently uninvestable. Personally I think we will be lucky to be able to buy the power we need. Eg USA is currently pumping more oil and gas than any nation ever has….. and considering export bans. But this doesn’t mean any British govt will make a sensible decision about power. A generation of poor planning suggests the opposite IMO.

[bookbroker] 27/3/2024 09:18

This seems stuck in a tight range, just drifting aimlessly, not much to update the market on, I hope that they will in time shut off all UK production, it is just pointless investing in Uk Oil and Gas with the existing tax regime. This Govt. has done more damage to the economy than most Tory Govts. of the past combined, the party off high taxation.

[farmerjohn1] 19/3/2024 16:13

Yahoo Finance Tue, 19 March 2024

1 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.

[bearnecessities33] 15/3/2024 08:57

Oil Could Rise More than Anyone Expects This Year

Morgan Stanley's Martijn Rats: oil prices could rise so sharply that they might take some by surprise.
The Energy Information Administration this week revised upwards its forecast for U.S. oil production growth this year, but adjusted its global production outlook downwards.
Tighter oil markets could come sooner rather than later this year.

Oil prices have been strengthening over the past few weeks. The trend is not of particularly noticeable proportions, with Brent still stuck in the low $80s and West Texas Intermediate hovering around $80 per barrel.

This could change later in the year, however, Morgan Stanley’s global oil strategist Martijn Rats has predicted. In fact, prices could rise so sharply that they might take some by surprise.

“There is a view in the market that the non-OPEC producers can meet all of the demand growth this year and therefore there isn’t much incremental room for OPEC oil and that means you rely on continued OPEC cuts,” Rats told CNBC this week.

However, actual reality has proven to be a bit different from that perception, the analyst said, telling CNBC that “On the supply side, we’re seeing a slowdown in U.S. shale, we’ve seen a wobbly start in Brazil [and] we’ve seen a wobbly start in Canada. We expected inventories to build, but year-to-date, they are kind of flat. If in the first quarter, inventories [are] flat then they can draw possibly quite significantly during the summer period.”

Interestingly, the Energy Information Administration this week revised upwards its forecast for U.S. oil production growth this year, but adjusted its global production outlook downwards. The EIA also revised its oil price forecast on that basis, now expecting Brent and WTI to end the year on a higher note than previously expected.

“The lower growth contributes to significant global oil inventory declines in our forecast for the second quarter of 2024 (2Q24),” the EIA said in its latest Short-Term Energy Outlook, suggesting the market tightening that Morgan Stanley’s Rats anticipates could come sooner rather than later.

This would certainly surprise many who see the oil market as well supplied, not least because of a slew of forecasts pointing to weaker demand from China—the biggest driver of oil demand in the world. This perception of demand weakness contributed to oil prices’ range-bound movement for much of last year despite the physical market actually showing record demand from the world’s largest importer of the commodity in absolute terms.

Worries about the global economy also served to fuel this perception that oil prices have limited upward potential. This worry has had a more solid grounding with a lot of countries struggling with their post-pandemic lockdown recovery and others, notably in Europe, reeling from an energy crunch that began in late 2021 and really got a boost in 2022.

This attitude, however, may be changing, too. OPEC, in its latest oil market report, sounded a note of optimism on economic growth, revising its forecast for this year by 0.1% to 2.8%. The IMF was even more optimistic last month when it revised its own global GDP growth for this year to 3.1%, a 0.2% upward revision from its previous projection.

This is why OPEC reiterated its expectation of strong oil demand growth this year, at over 2.2 million barrels daily, even as the International Energy Agency keeps lowering its own demand projections.

Indeed, in an environment where the dominant perception is of first, weakening Chinese demand growth; second, Europe in economic crisis; and three, energy transition, it is easy to assume that oil prices will remain weak. This assumption, like many others, may turn out to be quite wrong, serving a nasty surprise to those betting money on it.

Right now, prices are on the rise following a string of drone attacks by Ukraine on Russian refineries, sparking concern about fuel supply security. They also got a boost from another round of fuel inventory draws in the United States, which suggests strengthening demand. The temporary boost could extend as we near the start of driving season, and EV sales appear to be growing more softly than they were last year. It could extend and strengthen to an extent that might result in something of a shock.

[back2basics1] 14/3/2024 14:25

Good to note that Brent Oil, UK, European (and Natural gas) Gas prices are all nicely up once again here and with Brent prices looking particularly bullish at the moment trading/breaking above the USD $84 resistance mark:

[cashisking76] 14/3/2024 08:18

Berenberg upgraded Harbour Energy on Wednesday to 'buy' from 'hold' and lifted its price target on the stock to 360.0p from 280.0p as it said that cash flow supports higher returns.

Harbour Energy reported its FY23 results on 7 March and Berenberg said that most of the key figures were in line with those reported in the January trading update.

"Importantly, despite recent headlines, the company remains confident in completing its merger with Wintershall Dea, which will transform the portfolio in terms of scale and diversification," the bank said.

It said Harbour's deal to take control of most of Wintershall Dea’s upstream portfolio adds significant scale to the business and diversifies the portfolio away from the UK’s challenging fiscal system.

"Based on our initial modelling, it significantly increases cash flow and potential for increased shareholder returns - publication of the prospectus (expected in Q2 2024) is likely to provide more detail and reduce some of the uncertainty in our initial forecasts," it said.

Berenberg noted that the company has guided to a 5% increase in dividends and said it expects the higher cash flow to support dividend per share growth over the medium term. The German bank also said it was updating its model to incorporate FY24 guidance from both Harbour and Wintershall Dea, and give credit for tax deductibility of decommissioning provisions in its valuation.

[cashisking76] 13/3/2024 11:16

London Broker Ratings Today:

Berenberg raises Harbour Energy to ’buy’ (hold) - price target 360 (280) pence

[farmerjohn1] 13/3/2024 09:37

Offshore Energy March 13, 2024

Fresh gas discovery for Harbour Energy in North Sea as drilling ops bear fruit

Harbour Energy Norge, a Norwegian subsidiary of Harbour Energy, has made a new gas discovery in the North Sea off the coast of Norway, using one of Noble Corporation’s jack-up rigs.

The Norwegian Offshore Directorate (NOD) granted Harbour Energy a drilling permit for the well 15/9-25, the Amethyst prospect, in November 2023, weeks after the Norwegian player obtained consent for exploration drilling in block 15/9 in the North Sea.

This well is located in production license 1138, which is operated by Harbour Energy Norge (40%) in partnership with Sval Energi (30%) and Aker BP (30%). The company and its partners have confirmed a gas discovery in well 15/9-25. The presence of gas was previously proven in two other exploration wells: 16/7-2 and 16/7-10, drilled in 1982 and 2011, respectively.

According to NOD, the overall gas volume is between one and three million standard cubic meters (Sm3) of recoverable oil equivalent. Harbour and its partners will consider whether there is a technical and financial basis for tying the discovery into existing infrastructure in the area.

The primary exploration target for the well, which was drilled using the Noble Integrator jack-up rig northeast of the Sleipner area about 210 kilometers west of Stavanger, was to prove petroleum in Middle Jurassic and Triassic reservoir rocks in the Hugin and Skagerrak formations.

On the other hand, the secondary exploration target was to delineate gas proven in wells 16/7-2 and 16/7-10 in reservoir rocks in the Ty Formation from the Palaeocene. In the primary exploration target, well 15/9-25 encountered a 22-metre thick layer of aquiferous sand with very good reservoir quality in the Hugin Formation in the Vestland Group.

Regarding the Ty Formation, the well encountered a 10-metre gas column in a 118-metre thick sandstone reservoir with very good reservoir quality. The gas/water contact was encountered 2,330 meters below sea level, confirming the contact encountered in nearby wells.

Furthermore, the well, which was drilled to a measured depth of 2,872 meters below sea level and terminated in the Smith Bank Formation in the Upper Triassic, was not formation-tested. However, extensive data acquisition and sampling were carried out.

The water depth at the site is 84 meters and the well 15/9-25 has been permanently plugged and abandoned. The Noble Integrator jack-up rig scored a one-well contract with Harbour Energy on the Norwegian Continental Shelf (NCS) in the summer of 2023, with an estimated duration of 35 days.

The 2014-built Noble Integrator is a Gusto MSC CJ70 X150 MD jack-up rig constructed at Keppel FELS shipyard in Singapore and can accommodate 150 people. Capable of working in a water depth of 492 ft, the rig’s maximum drilling depth is 40,000 ft.

Harbour Energy is in the process of expanding its portfolio, thanks to a deal to acquire Wintershall Dea‘s entire non-Russian oil and gas portfolio along with carbon capture and storage assets in Europe to bring one of the world’s largest and most geographically diverse independent oil and gas companies to life.