Harbour Energy (GB:HBR)
LSE:HBR
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Harbour Energy
(LSE:HBR)
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Rating:69Neutral
Price Target:
243.00 p
â–¼(-6.97% Downside)
Action:Reiterated
Date:03/07/26
The score is driven primarily by strong cash-flow generation and improving balance-sheet resilience, supported by a clear shareholder distribution framework and constructive production outlook from the earnings call. Technicals are favorable but appear overextended, while valuation is mixed: an attractive dividend yield is offset by negative earnings and associated volatility.
Positive Factors
Strong cash generation & rising FCF
Sustained operating cash flow and a ~46% rise in free cash flow signals durable internal funding for capex, debt reduction and distributions. Robust FCF underpins reinvestment in higher-return projects and provides a buffer versus commodity cycles, supporting long‑term financial flexibility.
Negative Factors
Earnings volatility and negative net income
Persistent swings between adjusted profits and reported losses (impairments, FX, taxes) undermine earnings quality and return on equity. This volatility complicates long‑term forecasting, may temper investor confidence, and risks constraining dividend policy if accounting losses recur despite healthy cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & rising FCF
Sustained operating cash flow and a ~46% rise in free cash flow signals durable internal funding for capex, debt reduction and distributions. Robust FCF underpins reinvestment in higher-return projects and provides a buffer versus commodity cycles, supporting long‑term financial flexibility.
Read all positive factors
Harbour Energy (HBR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.99B
Dividend Yield8.77%
Average Volume (3M)2.87M
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth57.55%
EPS Growth-54.80%
CountryUK
Employees3,019
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.15
Shares Outstanding1,579,798,600
10 Day Avg. Volume2,958,546
30 Day Avg. Volume2,866,202
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)1.08
Price to Sales (P/S)0.44
P/FCF Ratio2.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£338.50Price Target Upside29.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.68
Revenue Forecast (FY)£11.93B
Harbour Energy Business Overview & Revenue Model
Company Description
Harbour Energy plc functions as an independent oil and gas firm, specializing in the entire lifecycle of hydrocarbon assets – from their acquisition and exploration to their development and eventual production. The company manages an extensive por...
How the Company Makes Money
Harbour Energy makes money primarily by producing and selling hydrocarbons (crude oil, natural gas, and associated liquids) from its operated and non-operated fields. Revenue is generated when produced volumes are sold to buyers at prevailing mark...
Harbour Energy Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and strategic picture: record production, materially lower unit operating costs, strong operating cash flow and free cash flow in 2025, and decisive portfolio upgrades (Waldorf, Indonesia sale, LLOG) that position the company for higher-margin, lower-tax growth in the U.S., Norway, Argentina and Mexico. Management set a clear distribution framework tied to cash flow and outlined plans to delever after the LLOG acquisition. Key near-term challenges are the jump in net debt post-acquisition, material one-off impairments and FX losses that produced a reported loss after tax, elevated cash taxes, higher near‑term OpEx from LLOG, and some operational safety and G&A pressures. On balance, the company highlights stronger long‑term free cash flow and portfolio quality improvements that outweigh the near‑term financial and integration headwinds.Positive Updates
Record Production
Group production reached a record 474,000 barrels per day in 2025, up more than 80% year-over-year, driven by full-year contribution from Wintershall Dea and strong execution across the expanded portfolio.
Negative Updates
Post-Acquisition Leverage Increase
Net debt fell to $4.4 billion during 2025 but rose to $7.2 billion on completion of the $3.2 billion LLOG acquisition (funded with $0.5 billion equity and $2.7 billion cash including $1.0 billion bridge and $1.0 billion term loan). Management plans to delever over ~3 years.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Production
Group production reached a record 474,000 barrels per day in 2025, up more than 80% year-over-year, driven by full-year contribution from Wintershall Dea and strong execution across the expanded portfolio.
Read all positive updates
Company Guidance
Harbour guided 2026 production to 475,000–500,000 BOE/d, unit OpEx around $14.5/BOE (with LLOG at ~$19/BOE in 2026, falling to ~$12/BOE by 2030), and total 2026 CapEx of $2.2–2.4bn (rising to an annual run-rate of $2.0–2.3bn from 2027), while targeting sustained group production of 475k–500k BOE/d through the end of the decade; at $65 Brent / $11 European gas management expects ~ $0.6bn free cash flow in 2026 (sensitive to $170m per $5/bbl oil and ~$150m per $1/Mcf gas) and, using current forward curves, FCF nearer $1.4bn, rising to ~ $1.0bn by 2028 as U.S. Gulf production doubles by 2028 and operated CapEx rises to ~60% (Gulf spend ~ $400m/yr with 10–15 wells over the next 3 years); net debt moved from $4.4bn (year-end 2025) to ~$7.2bn post‑LLOG ($3.2bn purchase funded with $0.5bn equity and $2.7bn cash), with an intention to repay the term loan over ~3 years and return leverage below a <1x target, and a new distributions policy to return 45–75% of annual FCF (initial base dividend $0.161/share ≈ $300m, proposed final $0.0805/share ≈ $150m = 45% payout for 2025; illustration: at $75/$14 a 45% payout ≈ $600m).Harbour Energy Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.20B | 6.16B | 3.71B | 5.39B | 3.48B |
| Gross Profit | 4.06B | 2.54B | 1.34B | 2.54B | 1.03B |
| EBITDA | 6.30B | 3.31B | 2.32B | 4.21B | 1.91B |
| Net Income | -185.82M | -93.00M | 45.00M | 8.00M | 101.10M |
Balance Sheet | |||||
| Total Assets | 29.10B | 30.32B | 9.90B | 12.57B | 14.50B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 830.00M | 286.00M | 524.00M | 702.00M |
| Total Debt | 870.32M | 6.02B | 1.28B | 2.06B | 3.54B |
| Total Liabilities | 24.92B | 24.07B | 8.36B | 11.54B | 14.03B |
| Stockholders Equity | 4.18B | 6.25B | 1.55B | 1.02B | 473.50M |
Cash Flow | |||||
| Free Cash Flow | 1.85B | 293.00M | 1.34B | 2.52B | 1.00B |
| Operating Cash Flow | 3.31B | 1.61B | 2.14B | 3.13B | 1.61B |
| Investing Cash Flow | -1.96B | -2.28B | -693.00M | -628.60M | -571.00M |
| Financing Cash Flow | -1.27B | 1.23B | -1.67B | -2.67B | -787.20M |
Harbour Energy Technical Analysis
Negative
261.20
Price Trends
271.31
Negative
265.01
Negative
236.11
Negative
Market Momentum
-14.19
Positive
26.87
Positive
4.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HBR, the sentiment is Negative. The current price of 261.2 is above the 20-day moving average (MA) of 253.06, below the 50-day MA of 271.31, and above the 200-day MA of 236.11, indicating a bearish trend. The MACD of -14.19 indicates Positive momentum. The RSI at 26.87 is Positive, neither overbought nor oversold. The STOCH value of 4.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HBR.
Harbour Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £2.99B | 22.36 | 9.72% | 5.64% | 49.70% | -5.56% | |
69 Neutral | £3.99B | -18.77 | -4.05% | 8.77% | 57.55% | -54.80% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | £3.54B | 19.34 | 9.33% | 14.05% | 36.10% | ― | |
63 Neutral | £706.52M | 2.78 | 40.22% | 10.49% | ― | ― | |
63 Neutral | £858.37M | -16.67 | -9.06% | 9.30% | -20.00% | -154.63% | |
58 Neutral | £1.30B | -6.63 | -65.81% | 10.99% | 27.35% | -228.25% |
* Energy Sector Average
GB:HBR
Harbour Energy
219.00
35.26
19.19%
GB:DEC
Diversified Energy Company
990.00
-11.38
-1.14%
GB:SEPL
SEPLAT Petroleum Development
499.00
277.77
125.56%
GB:SQZ
Serica Energy
218.40
70.33
47.50%
GB:ENOG
Energean
703.50
-133.02
-15.90%
GB:ITH
Ithaca Energy PLC
214.00
72.48
51.22%
Harbour Energy Corporate Events
Business Operations and StrategyExecutive/Board Changes
Harbour Energy Reduces BASF Board Representation After Stake Falls Below 25%
Neutral
Jun 9, 2026
Harbour Energy has announced a change to its board following a reduction in the shareholding of major investor BASF, whose stake has fallen below 25 per cent. Under an existing relationship agreement, BASF’s right to nominate directors has d...
Business Operations and StrategyRegulatory Filings and Compliance
Harbour Energy Updates Share Capital and Voting Rights After Option Exercises
Neutral
Jun 1, 2026
Harbour Energy has confirmed that as of 31 May 2026 its issued share capital comprises 1,579,798,584 ordinary shares with voting rights, and it holds no shares in treasury. This updated share count serves as the new reference figure for investors ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Harbour Energy Details $3.8 Billion in 2025 Payments to Governments
Neutral
May 29, 2026
Harbour Energy has disclosed its 2025 payments to governments worldwide, reporting total disbursements of $3,757 million, including $3,454 million in income taxes, $160 million in royalties and $115 million in production entitlements. The bulk of ...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial DisclosuresShareholder Meetings
Harbour Energy Wins Strong Shareholder Backing for All AGM Resolutions
Positive
May 7, 2026
Harbour Energy shareholders overwhelmingly approved all resolutions at the company’s annual general meeting on 7 May 2026, including the 2025 accounts, a final dividend, the directors’ remuneration report and the re-election of all ser...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Harbour Energy lifts 2026 cash flow outlook after strong first quarter and LLOG deal
Positive
May 7, 2026
Harbour Energy reported strong first-quarter 2026 operational performance, producing 506,000 barrels of oil equivalent per day with lower unit operating costs and stable safety and emissions metrics. The company completed its $3.2 billion LLOG acq...
Regulatory Filings and Compliance
Harbour Energy Updates Share Capital and Voting Rights Figure
Neutral
May 1, 2026
Harbour Energy has confirmed that as of 30 April 2026 its issued share capital stands at 1,579,776,553 ordinary shares with voting rights, and the company holds no shares in treasury. This figure becomes the key denominator for investors assessing...
DividendsShareholder Meetings
Harbour Energy Sets Sterling Rate for $150 Million Final Dividend
Positive
Apr 13, 2026
Harbour Energy has confirmed the sterling equivalent for its proposed final dividend of $150 million, or 8.05 US cents per share, for the 2025 financial year, translating to a payment of 5.9798 pence per share based on a GBP/USD exchange rate of 1...
Executive/Board ChangesRegulatory Filings and Compliance
Harbour Energy CFO Retains Shares After LTIP Award Vests
Neutral
Apr 9, 2026
Harbour Energy has disclosed that Chief Financial Officer Alexander Krane’s Restricted Share Award under the company’s 2025 long-term incentive plan vested on 8 April 2026. The company settled associated tax and National Insurance liab...
Executive/Board Changes
Harbour Energy executives receive vested performance and deferred bonus shares
Neutral
Apr 9, 2026
Harbour Energy has confirmed the vesting of 2023 Performance Share Awards and 2022 Deferred Bonus Awards to chief executive Linda Z. Cook and chief financial officer Alexander Krane under its 2017 Long Term Incentive Plan. Only 23.5% of the 2023 p...
Business Operations and StrategyExecutive/Board Changes
Harbour Energy ties executive pay more tightly to long-term performance
Positive
Apr 9, 2026
Harbour Energy has granted its chief executive Linda Z. Cook and chief financial officer Alexander Krane substantial equity-based awards under its 2025 Long Term Incentive Plan, linking a large portion of their pay to performance through contingen...
Regulatory Filings and Compliance
Harbour Energy Updates Share Capital and Voting Rights Structure
Neutral
Apr 1, 2026
As of 31 March 2026, Harbour Energy reported an issued share capital of 1,579,771,350 ordinary shares with voting rights and confirmed that it holds no shares in treasury, setting the official denominator for investors assessing disclosure obligat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.