Harbour Energy plc

Harbour reported first-half production of 509,000 barrels per day, with July at 510,000 barrels per day. Adjusted EPS was $0.28, up 27% year over year, and adjusted after-tax profit rose 37% to $562 million; revenue increased more than 20% and adjusted EBITDAX rose 15% versus the first half of 2025. Unit operating costs were $13.3 per BOE. The company generated $4.5 billion of operating cash flow, invested $1 billion of CapEx, paid $1.5 billion in taxes, and produced $1.8 billion of free cash flow. Full-year 2026 free cash flow guidance was raised to $1.8 billion from $1.4 billion, assuming average Brent of $85 per barrel and European gas of $15 per Mcf; production guidance was lifted to 490,000-500,000 BOE/day, with unit OpEx and CapEx guidance unchanged. Management said current curves could put free cash flow closer to $2 billion.

Linda Cook framed the quarter as evidence that Harbour’s portfolio transformation is working, citing stronger scale, resilience and a shift toward lower-cost, lower-tax basins. She highlighted the completed LLOG, Waldorf and Indonesia transactions, saying they improved portfolio quality and accelerated free cash flow and shareholder returns. Her tone was confident and upbeat, but measured, with repeated emphasis on disciplined capital allocation and continuing to execute rather than expanding investment.

Alexander Krane focused on the financial upside from record production, stronger commodity prices and portfolio actions. He said oil realizations were $90 per barrel pre-hedge and $84 post-hedge, while European gas realizations were $15 per Mcf pre-hedge and $14.4 post-hedge; unit OpEx was $13.3 per BOE. He noted $4.5 billion of operating cash flow, $1.8 billion of free cash flow, net debt of $5.4 billion, leverage of 0.7x, cash balances of $1.6 billion and liquidity of $4.1 billion. He also pointed out the $3 billion revolver refinancing to 2031 with a 30% margin reduction, and said the company expects to return at least $800 million to shareholders, including the $150 million interim dividend and the $250 million buyback.

Analysts focused on the second-half production step-down, capital allocation, buybacks versus dividends, U.K. strategy, and Zama timing. Management said the lower second-half production outlook mainly reflects planned maintenance, some deferred activity, and a placeholder for possible Gulf hurricane impact. On capital returns, management emphasized debt reduction remains a priority after LLOG, but said the current free cash flow outlook supports accelerating buybacks into August, with further returns to be decided later. On the U.K., Linda Cook said Harbour will not comment on specific M&A, but the high-tax fiscal backdrop makes U.K. projects less competitive than opportunities elsewhere. On Zama, Nigel Hearne said first oil is targeted toward the end of 2029, with FEED and FID milestones still ahead.