Harbour Energy Announces $100M Buyback Amid Strong Production, Shares Surge

Harbour Energy (LON:HBR) has launched a $100 million share buyback programme after reporting strong first-half operational and financial results, underpinned by the successful integration of its Wintershall Dea acquisition.

Production surged to 488,000 barrels of oil equivalent per day (kboepd), more than tripling from 159 kboepd a year earlier. 

Unit operating costs fell around 30% to $12.4 per barrel of oil equivalent, while adjusted profit after tax rose to $400 million from $100 million. 

Free cash flow increased to $1.36 billion, enabling net debt reduction to $3.8 billion.

Harbour Energy shares have surged over 16% in early Thursday trading to above the 238p per share mark. The stock gained 3.4% in Wednesday's session.

Chief Executive Linda Z Cook said: “Harbour delivered strong first-half results driven by excellent operational execution and reflecting the benefits of the Wintershall Dea acquisition.

“These steps, along with the strong results from the first half, have enabled us to upgrade our free cash flow outlook for the year.”

Cook added that the new buyback “demonstrated” Harbour’s confidence in its capital allocation priorities, which also include debt reduction and dividends.

The company narrowed its full-year production guidance to 460–475 kboepd from 455-475 kboepd.

It also upgraded its free cash flow forecast to $1 billion. Interim dividend payments were confirmed at $227.5 million, or 13.19 cents per share, aligning with its $455 million annual dividend target.

Growth projects progressed across multiple regions, including new wells at Maria Phase 2 in Norway, Vaca Muerta in Argentina, and approvals for the Dvalin North development. 

A final investment decision was also taken on the Southern Energy LNG project in Argentina.

Harbour also completed its exit from Vietnam and reported investment-grade credit ratings with a stable outlook.