Harbour Energy (LSE:HBR) reported a sharp increase in operational scale during 2025, with average production rising 84% to 474,000 barrels of oil equivalent per day. The uplift reflected the full-year contribution from the Wintershall Dea assets and strong operational execution across the portfolio. Unit operating costs fell by around 20% to $13 per boe, while greenhouse gas intensity improved to 14 kgCO₂ per boe.
Financial performance strengthened alongside higher output. Revenue increased to $10.3bn and EBITDAX reached approximately $7.1bn, supporting free cash flow of $1.1bn for the year. Net debt was reduced to $4.4bn as the company progressed key development projects in Norway, Argentina, Mexico and Egypt, advanced carbon capture and storage initiatives in Denmark, and delivered exploration success in both Norway and Egypt.
Strategically, Harbour completed the integration of the Wintershall Dea portfolio and continued to streamline its asset base, exiting non-core positions in Vietnam and selected licences. During the year, the group announced three notable transactions: divestments in Indonesia, a UK acquisition of Waldorf that unlocks cash and tax losses, and a $3.2bn acquisition of LLOG Exploration in the US Gulf of Mexico. The latter is expected to add a long-life, oil-weighted operated portfolio and further diversify the company’s production base.
Looking ahead to 2026, before the impact of the pending transactions, Harbour is guiding to production of 435,000–455,000 boepd, operating costs of around $13.5 per boe, capital expenditure of $1.7–1.9bn and free cash flow of roughly $600m at current price assumptions. Management said it is targeting another year of solid operational delivery, further balance sheet strengthening and, subject to deal completion, a move towards 500,000 boepd by the end of the year alongside a lower effective tax rate.
Overall, Harbour Energy’s outlook is supported by strong operational execution and strategic actions aimed at enhancing shareholder value, including share buybacks. These positives are partly offset by a negative P/E ratio and bearish technical indicators, which continue to weigh on sentiment. A high dividend yield and constructive earnings call commentary provide some support, although profitability pressures remain an area of focus.
More about Harbour Energy
Harbour Energy is an independent oil and gas exploration and production company with a geographically diversified portfolio spanning the UK, Norway, Germany, Argentina, Mexico, North Africa and Southeast Asia. Its production mix is broadly balanced between liquids and natural gas, with an increasing focus on high-return, short-cycle projects and lower-carbon operations, including carbon capture and storage, to support free cash flow generation and resilience in evolving energy markets.
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