Shares of Harbour Energy PLC (LON: HBR) spiked 1900% higher after the 20 for one reverse share split came into effect after shareholders approved the move during the AGM held on Wednesday, 23 June 2021.
So, those surprised by the sudden spike in the independent oil producer’s share price have nothing to worry about as the oil company did not make any significant announcement that warranted a 20X rally.
However, investors will no have to pay more to buy shares in the oil producer, making it harder for retail investors to accumulate a sizeable stake in the company.
Harbour Energy’s shareholders approved most of the resolutions presented by the company’s board, including the Directors’ remuneration policy, annual report and accounts, the reappointment of all directors and Ernst & Young as the firm’s auditor.
Following the share consolidation, the oil Harbour Energy’s shares have shrunk from over 18.5 billion shares to 925.5 million shares. The company’s board had expressed concern over the large number of outstanding shares following the successful Premier Oil and Chrysaor all-share merger that created the company.
Harbour Energy released an operations update for the five months to May 31 during its recent AGM. Its daily production capacity ranged between 162,000 boe and 197,000 boe and was negatively affected by planned maintenance and inspection shutdowns.
The company expects its 2021 production to rise to 185,000 to 200,000 boepd. Its operating costs were $15.7/boe, and the company expects full-year operating costs to be from $15 to $16/boe.
Harbour Energy’s net debt fell to $2.7 billion from $2.9 billion in March 2021 with available liquidity of $1 billion.
I will be monitoring the stock in the future to see how it trades at its much higher share price.
*This is not investment advice.
Harbour Energy share price.
Harbour Energy share spiked 1900% higher to trade at 400p, rising from yesterday’s closing price of 20p.
Should You Invest in Harbour Energy Shares?
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