Harbour Energy plc HBRIY has marked 2024 as a pivotal year in its growth journey following the completion of its $11.2 billion acquisition of Wintershall Dea. The acquisition, which was completed in September 2024, has significantly bolstered the company’s production capacity and geographical reach. Four months of contribution from the acquired portfolio boosted Harbour Energy’s production levels to an average of 258,000 barrels of oil equivalent per day (boepd) in 2024, a remarkable 40% increase compared to 2023 levels.
The company emphasized the importance of this transformational deal, which led to an expansion of HBRIY’s assets in regions like Norway, Germany, Denmark, Argentina, Mexico, Egypt, Libya and Algeria.
Harbor Energy enjoyed a boost in its production levels and a set of diversified operations in 2024 after the transformational acquisition. The company’s outstanding production was split across liquids (40%), European gas (45%) and non-European gas (15%). Operating costs remained steady at $16.5/boe, aligning with its previous guidance. The company also made significant progress in carbon capture and storage with a focus on building long-term cash flow potential.
Financially, Harbour Energy anticipates a 65% revenue increase to $6.1 billion, driven by higher production. Capital expenditure is anticipated to be $1.8 billion, which again aligns with its previous guidance. HBRIY’s shareholder distributions totaled $200 million, resulting in $1.2 billion returned to its shareholders over three years via dividends and buybacks. Net debt remained at $4.7 billion, supported by a transformed debt structure and upgraded credit ratings.
In 2025, Harbour Energy expects production to rise significantly to 450,000-475,000 boepd, driven by a full year’s contribution from the Wintershall Dea portfolio. The company’s unit operating costs are expected to be $14/boe, reflecting Wintershall Dea's lower-cost assets.
Capital expenditure is forecasted to increase from 2024 to $2.4-$2.6 billion, highlighting the integration of Wintershall’s assets. The company is expected to generate a free cash flow of about $1 billion. It plans to distribute $455 million in dividends, with $227.5 million allocated for the 2024 final dividend and $227.5 million for the 2025 interim payout.
The U.K.-based Harbour Energy is an independent oil and gas company. Currently, HBRIY has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at other top-ranked stocks like ARC Resources Ltd. AETUF, Equinor ASA EQNR and Gulfport Energy Corporation GPOR.While ARC Resources and Equinor currently sport a Zacks Rank #1 (Strong Buy) each, Gulfport Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.
Headquartered in Stavanger, Norway, Equinor is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. EQNR’s expected EPS growth rate for next five years is 5.30%, which aligns favorably with the industry growth rate of 5%.
Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.
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