Harbour Energy to Buy LLOG for $3.2bn in Deepwater Gulf of Mexico Push

Harbour Energy ( (GB:HBR) ) has provided an announcement.

Harbour Energy has agreed to acquire privately held LLOG Exploration Company for $3.2 billion in cash and shares, marking its strategic entry into the deepwater US Gulf of Mexico and adding a new core business unit alongside its existing operations in Norway, the UK, Argentina and Mexico. The deal brings oil‑weighted, long-life, low‑cost offshore assets with significant operational control, adding 271 million barrels of 2P reserves, extending Harbour’s reserves life, and supporting production of around 500,000 barrels of oil equivalent per day to the end of the decade, while management highlights that the transaction should enhance margins, lower the effective tax rate, and become free‑cash‑flow per share accretive from 2027. LLOG’s experienced deepwater team, leading lease position and inventory of short‑cycle, infrastructure‑led drilling opportunities are expected to underpin growth and supply-chain synergies, including with Harbour’s Mexican projects, while the financing mix of debt and new equity will leave LLOG’s owners with about 11% of Harbour’s shares and support the company’s ambition to move to a payout‑ratio based distribution policy and reinforce its investment‑grade credit profile.

The most recent analyst rating on (GB:HBR) stock is a Buy with a £320.00 price target. To see the full list of analyst forecasts on Harbour Energy stock, see the GB:HBR Stock Forecast page.

Spark’s Take on GB:HBR Stock

According to Spark, TipRanks’ AI Analyst, GB:HBR is a Neutral.

Harbour Energy’s overall stock score is driven by strong operational performance and strategic initiatives like share buybacks, which enhance shareholder value. However, the negative P/E ratio and bearish technical indicators weigh on the score. The high dividend yield and positive earnings call sentiment provide some support, but profitability challenges remain a concern.

To see Spark’s full report on GB:HBR stock, click here.

More about Harbour Energy

Harbour Energy is an independent oil and gas company with core operations in offshore basins across Norway, the UK, Argentina and Mexico, focused on exploration, development and production of conventional hydrocarbons. The company has been expanding its global footprint and portfolio scale through strategic acquisitions and portfolio reshaping, positioning itself as a larger OECD-focused offshore producer with an emphasis on long-life, low-breakeven assets and strong free cash flow generation.

Average Trading Volume: 3,099,174

Technical Sentiment Signal: Sell

Current Market Cap: £3.42B

For a thorough assessment of HBR stock, go to TipRanks’ Stock Analysis page.