Harbour Energy Share Discussion Threads

[janhar] 31/1/2024 08:15

Probably trying to cover a short

[janhar] 31/1/2024 08:14

Doesn't matter what Goldmans say - the enlarged entity will propel hbr into the FTSE so there will be a shortage of stock given the lack of liquidity

[pineapple1] 31/1/2024 08:13

Goldman will be buyers then. Do the opposite of those sharks.

[wolfofhounslow] 31/1/2024 08:07

Notable broker revision at Harbour Energy:Cut to Sell at Goldman; PT 260 pence

[onlylongterm9] 26/1/2024 06:30

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”.

[back2basics1] 25/1/2024 08:12

Brent prices now nicely trading above the Key USD $80 resistance level here while additionally, all the future forward prices for Brent are also bullishly showing above $80 mark until July 2024 at the moment.

[monkeybusiness1] 24/1/2024 20:23

U.S. crude oil inventories decrease by 9.2 million barrels

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 9.2 million barrels from the previous week. At 420.7 million barrels, U.S. crude oil inventories are 5% below the five year average for this time of year, according to the EIA crude oil and petroleum weekly storage data, reporting inventories as of January 19, 2024.

[monkeybusiness1] 20/1/2024 06:39

Wintershall Dea secures five licenses as operator in latest APA round

Wintershall Dea has been awarded 13 exploration licenses on the Norwegian Continental Shelf (five as operator).

STAVANGER — Wintershall Dea has been awarded 13 exploration licenses by the Norwegian Ministry of Energy in the 2023 Award in Predefined Areas (APA).

Five licenses were awarded to Wintershall as operator and eight as a partner.

Wintershall has participated in 19 discoveries since 2019. Most of these are the result of licenses awarded in previous APA rounds.

“In terms of our operated fields, in the last two years we have begun production on Dvalin and Nova, and we will start production on Dvalin North and Maria Phase 2 in the coming years," said Michael Zechner, Wintershall Dea Norge Managing Director. "Most of these developments began with our gaining of licenses through awards in previous APA rounds. The continued development of fields ensures that we can supply much needed gas to Europe and especially Germany, where Norway was the most important gas supplier in 2023."

Three of the licenses awarded are in the North Sea (one as operator) and 10 in the Norwegian Sea (four as operator). Nine of the awards are new licenses, and four are area extensions to existing licenses.

The Norwegian Sea awards are located in the Vøring Basin, where Wintershall has a stake in the Aasta Hansteen Field, and the Haltenbanken area, where Wintershall is the operator of the Maria and Dvalin fields.

In the North Sea, the awards are located in the Q35 area, close to the Wintershall-operated Nova and Vega fields, and the Tampen area close to the Snorre Field where Wintershall is a partner.

[bob reno] 19/1/2024 23:41

Nice to see harbour are committed to the wef esg's and their woke agenda ....lol

[husbod] 18/1/2024 15:44

Fear overcoming greed atm but this could be a great buying opportunity for the brave and/or reckless.Seems like the German government review is standard practice but the share price is just going to reflect the company's current assets etc with a bit of hope value thrown in. All very frustrating.

[brazilnut1] 18/1/2024 15:36

£6+ ? Where do they get them from ? £2.90 from £5+ 2 years ago, thrown out of ftse 100 not once but twice. This is a poorly run company. Stop kidding yourselves.

[back2basics1] 18/1/2024 13:15

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.

[cjd190573] 18/1/2024 11:35

Given this morning’s announcement RE the deliberate UK production cut, you can expect that there is a high degree of certainty with a successful WD deal.

[nigelpm] 18/1/2024 11:28

ouch - that's a kicker for HBR.

[kibes] 18/1/2024 11:25

Domestic gas production in Germany is only a small part of the Wintershall portfolio if the German government is worried about the security of that they could remove it from the sale without much effect and perhaps lump it with the Russian assets they are keeping anyway. Or they could ask Harbour to divest to a local German company. No reason to hold up the deal for that reason. And gas production from Norway is the responsibility of Norway who can control what happens whoever owns the licences.

[brazilnut1] 18/1/2024 11:07

What a dud this is. 550-700p incoming though. 2030 it might get there.

[pineapple1] 18/1/2024 10:33

If it was being sold to the chinese i suspect it would have been stopped. Can't see it being halted on those grounds with a UK based firm.
A big cut in guidance though thats for sure...
Low volume fall and everything gets punished hard for numbers off those expected by the market. Even good numbers seem to be punished nowadays.
Bought a few more on this weakness...
imho

[elsa7878] 18/1/2024 09:55

This is why it’s down so much. (As well as cutting guidance for next year).


BASF's planned sale of the exploration and production business of its subsidiary Wintershall Dea to Harbour Energy will be reviewed for its potential impact on German security interests, according to Economics Minister Robert Habeck.

Habeck told the German parliament on Wednesday that the government reviews corporate investments and divestments with an eye to whether national security might be jeopardized by a cross-border transaction.

At the end of December, BASF agreed to sell Wintershall Dea's exploration and production business to the U.K.'s Harbour Energy, in a transaction valued at $11.2 billion.

Industry group Zukunft Gas expressed concerns over the deal.

"Germany will be dependent on natural gas for many years to come, so Wintershall Dea and its domestic gas production play an important role in the transformation of the energy system," Zukunft Gas head, Timm Kehler, said.

[luckyjoe999] 18/1/2024 08:37

I believe today, Linda C. took advantage of recent rises along with outstanding M&A news here and was her usual Conservative self in this early year RNS, now creating a great buying opportunity (especially before the May AGM) along with a likely fantastic year (post the Wintershall DEA Q4 deal completion) ahead.

Post from lse bb today:

AlexTrader0
Posts: 135
Price: 299.60
No Opinion
RE: You never know but....
Today 08:18

Topped up on this rare buying opportunity here with almost guaranteed big returns within ~1 year max, markets are almost never rational!

[monkeybusiness1] 18/1/2024 08:29

Today’s update is generally irrelevant given the massive post Wintershall DEA M&A picture, by year end HBR will be the size of Aker BP, securely back in the FTSE 100, and easily more than double (if not treble+) of today’s market cap, today is only for day to day traders of whom we have a few here, like many other shares. GLA.

[cashandcard] 18/1/2024 08:16

I think this update emphasises why they needed to expand away from the UKCS, alot more than they have. FCF dwindling due to spend, necessitated by the taxgrab.Cash