Harbour Energy announces 2026 half-year results

Harbour Energy has announced its unaudited half-year results for the six months ended 30 June 2026.

Linda Z Cook, Chief Executive Officer, commented:

'In a volatile macro environment, we remain focused on executing our strategy: sustaining our production, strengthening our portfolio, ensuring financial resilience and delivering competitive shareholder returns.

During the first half of the year we delivered excellent operational performance, leading to record production of more than 500,000 barrels per day and another upgrade to our full year guidance. Along with higher oil and European natural gas prices, this has enabled an increase to our 2026 free cash flow outlook to $1.8 billion. As a result, we are accelerating debt reduction and also the delivery of additional shareholder returns through a new $250 million share buyback.

In addition, we completed the strategic LLOG Exploration (US) and Waldorf (UK) acquisitions, and the divestment of non-core assets in Indonesia. These moves further strengthen our portfolio, supporting both production and cash flow for years to come.'

Highlights

The Company made significant progress against its strategic priorities in the first half, including:

Responsibly sustaining production at scale

• Increased production of 509 kboepd, up 4% (H1 2025: 488 kboepd)

• New wells online including in the US, Argentina, and in Norway where the Dvalin North project started up ahead of schedule

• Unit operating costs of $13.3/boe (H1 2025: $12.4/boe)

• Total recordable injury rate of 1.5 per million hours worked (H1 2025: 1.1)

• Net equity GHG emissions intensity of 13.0 kgCO2e/boe (H1 2025: 13.8 kgCO2e/boe)(1)

Building a competitive portfolio

• Three strategic transactions completed:

  • US: LLOG Exploration acquisition adds a new core country with an operated, oil-weighted portfolio, compelling growth profile and a supportive fiscal regime

  • UK: Waldorf acquisition (completed post period end) delivers significant financial and operational synergies, enhancing the resilience of our UK business

  • Indonesia: Divestment of non-core assets improves overall portfolio quality

• Pipeline of future infrastructure-led projects advanced including approval of developments in Norway (Gjøa subsea projects), expected approval of Who Dat East (US) later this month and several projects across our core countries scheduled to reach final investment decision (FID) by year end

• Growth projects progressed, supporting future reserves replacement:

  • Argentina: Southern Energy LNG export project (Harbour 15%) on track for end 2027 start up, providing access to global markets for Harbour’s Vaca Muerta natural gas resource

  • Mexico: Development concepts for operated Zama and Kan projects further optimised; partner alignment strengthened by Grupo Carso’s increased participation in both projects

• Exploration success in Norway at Omega Sør where the operator is fast tracking development

• Exploration portfolio enhanced with the award of nine exploration licences (four as operator) in the 2025 Norway APA licensing round and 12 leases (all as operator) in the US Big Beautiful Gulf 1 and 2 bid rounds

Ensuring financial resilience

• Realised post-hedge oil and European gas prices of $84/bbl and $14.4/mscf (H1 2025: $71/bbl, $13.4/mscf)

• Increased revenue of $6.4 billion (H1 2025: $5.3 billion), up c.20%; increased reported and adjusted  EBITDAX of $4.4 billion and $4.5 billion, respectively (H1 2025: $3.9 billion, $3.9 billion)

• Increased reported and adjusted profit after tax of $0.4 billion and $0.6 billion, respectively (H1 2025: loss of $0.2 billion, profit $0.4 billion). Increased reported earnings per share of 21 cents (H1 2025: loss 12 cents); on an adjusted basis, up 27% at 28 cents per share (H1 2025: 22 cents)

• Free cash flow over the period of $1.8 billion (H1 2025: $1.4 billion)(2), up c.30% and reflecting strong first half performance and commodity prices as well as the second half weighting of tax payments

• Significantly reduced leverage following completion of the $3.2 billion LLOG acquisition in February, with period-end net debt and leverage of $5.4 billion and 0.7x, respectively (YE 2025: $4.4 billion, 0.6x)(3)

• Post period end, successfully refinanced our $3.0 billion revolving credit facility (RCF), extending maturity to 2031 and improving commercial terms. Investment grade credit ratings from all three agencies maintained

Delivering competitive shareholder returns

• Interim dividend of 8.05 cents per voting ordinary share ($150 million)(4) to be paid in September, in line with our minimum annual dividend policy of 16.10 cents per voting ordinary share

• Reflecting the strong first half and outlook for the year, a new $250 million share buyback programme announced today, accelerating additional shareholder returns for 2026

Outlook for the year

• Production guidance further improved to 490-500 kboepd (480-500 kboepd previously)

• Operating cost guidance for 2026 unchanged at c.$14.5/boe

• Total capital expenditure guidance reiterated at $2.2-$2.4 billion

• Free cash flow outlook increased to c.$1.8 billion (from c.$1.4 billion), driven by stronger production and a commodity price outlook for the second half of $80/bbl Dated Brent and $16/mscf European gas(5)

• In line with our distributions policy and based on the $1.8 billion free cash flow outlook, a minimum of $800 million to be returned to shareholders for 2026. This includes at least $500 million of additional cash returns beyond our annual dividend, starting with the $250 million share buyback announced today

1. Updated to reflect 2025 full year reconciliation of data from previously reported H1 2025 GHG emissions intensity of 12 kgCO2eboe

2. Free cash flow (FCF) after capex, tax and before M&A/divestment proceeds and transaction costs, hybrid bond interest, debt repayment and shareholder distributions

3. Net debt excludes unamortised fees; Leverage is calculated as net debt (excluding unamortised fees)/Last twelve months EBITDAX

4. Includes $23 million to be paid on non-voting shares

5. Equivalent to c.$85/bbl Dated Brent and c.$15/mscf European gas for full year 2026 and assumes $1.35/£, $1.15/€ and NOK9.5/$ (compared to revious $1.4 billion free cash flow outlook which assumed $80/bbl and $13/mscf European gas prices for full year 2026 and $1.35/£, $1.15/€ and NOK10/$)

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Source: Harbour Energy