Harbour Energy (GB:HBR)
LSE:HBR
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Harbour Energy
(LSE:HBR)
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Rating:69Neutral
Price Target:
349.00 p
â–²(21.77% Upside)
Action:ReiteratedDate: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
Free Cash Flow Generation
Sustained, sizable operating and free cash flow provides durable internal funding for capex, debt reduction and shareholder returns. Consistent FCF cushions the business through oil/gas cycles and underpins the company's distribution policy tied to a percentage of annual FCF.
Negative Factors
Post-Acquisition Leverage Spike
The large jump in net debt following the LLOG deal raises financing and repayment burdens and compresses near‑term financial flexibility. Management targets deleveraging over ~3 years, but execution risk and interest costs could constrain reinvestment and distribution capacity until leverage is materially reduced.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained, sizable operating and free cash flow provides durable internal funding for capex, debt reduction and shareholder returns. Consistent FCF cushions the business through oil/gas cycles and underpins the company's distribution policy tied to a percentage of annual FCF.
Read all positive factors
Harbour Energy (HBR) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£5.22B
Dividend Yield8.77%
Average Volume (3M)2.87M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth123.03%
EPS Growth-330.89%
CountryUK
Employees3,019
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.02
Shares Outstanding1,579,771,400
10 Day Avg. Volume2,958,546
30 Day Avg. Volume2,866,202
Financial Highlights & Ratios
PEG Ratio-0.41
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
£271.52Price Target Upside-5.26% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.56
Revenue Forecast (FY)£9.85B
Harbour Energy Business Overview & Revenue Model
Company Description
Harbour Energy plc, an independent oil and gas company, engages in the acquisition, exploration, development, and production of oil and gas reserves. It holds 124 license interests and 48 producing fields in various properties located in the Unite...
How the Company Makes Money
Harbour Energy primarily makes money by producing and selling hydrocarbons (crude oil, natural gas, and associated liquids) from its operated and non-operated upstream fields. Revenue is generated when produced volumes are sold into relevant marke...
Harbour Energy Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 20, 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 | 3.64B | 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
Positive
286.60
Price Trends
256.32
Positive
232.75
Positive
220.91
Positive
Market Momentum
10.50
Positive
53.01
Neutral
46.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HBR, the sentiment is Positive. The current price of 286.6 is below the 20-day moving average (MA) of 291.32, above the 50-day MA of 256.32, and above the 200-day MA of 220.91, indicating a neutral trend. The MACD of 10.50 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 46.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | £2.92B | 13.86 | 8.95% | 5.64% | 159.13% | 143.76% | |
70 Outperform | £4.20B | -42.84 | -3.13% | 14.05% | 63.10% | -161.03% | |
69 Neutral | £5.22B | -24.34 | -4.05% | 8.77% | 123.03% | -330.89% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | £978.73M | 3.09 | 40.22% | 10.49% | 56.20% | -185.69% | |
63 Neutral | £1.09B | -12.95 | -6.09% | 9.30% | -32.89% | -239.58% | |
58 Neutral | £1.56B | -8.35 | -65.81% | 10.99% | -2.66% | 0.11% |
* Energy Sector Average
GB:HBR
Harbour Energy
286.60
132.88
86.44%
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151.53%
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116.26%
Harbour Energy Corporate Events
Other
Harbour Energy Chairman’s Associate Sells £153 Million Stake Off‑Market
Neutral
Mar 16, 2026
Harbour Energy disclosed that Potomac View Investments, a person closely associated with Chairman R. Blair Thomas, has sold 60 million ordinary shares in the company. The off‑market transaction on the London Stock Exchange was executed on 11...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Harbour Energy Posts Record Output, Raises Payout Policy as Gulf of Mexico Push Reshapes Portfolio
Positive
Mar 5, 2026
Harbour Energy reported a step-change in scale for 2025, with record production of 474,000 barrels of oil equivalent per day and sharply lower unit operating costs, driven by the integration of Wintershall Dea assets and strong performance across ...
Regulatory Filings and Compliance
Harbour Energy Confirms Total Voting Rights and Share Capital Base
Neutral
Mar 2, 2026
Harbour Energy has confirmed that as of 28 February 2026 its issued share capital comprises 1,579,724,339 ordinary shares, each carrying voting rights, and that it holds no shares in treasury. This share count serves as the reference denominator f...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
Harbour Energy Seals $3.2bn LLOG Deal to Enter US Gulf of Mexico
Positive
Feb 11, 2026
Harbour Energy has completed its $3.2 billion acquisition of LLOG Exploration Company, securing a strategic entry into the deepwater US Gulf of Mexico and adding a fully operated, oil‑weighted portfolio with high‑margin, long‑lif...
Regulatory Filings and Compliance
Harbour Energy Confirms Total Voting Rights and Share Capital
Neutral
Feb 2, 2026
Harbour Energy has confirmed that as of 31 January 2026 its issued share capital comprises 1,404,868,595 ordinary shares with full voting rights and that it holds no shares in treasury. The updated share count provides the reference figure investo...
Executive/Board Changes
Harbour Energy Non-Executive Director Gregory Hill Joins Ovintiv Board
Positive
Jan 30, 2026
Harbour Energy has announced that non-executive director Gregory Hill has joined the board of Ovintiv Inc. as a director, effective 30 January 2026. The additional board role underscores Hill’s expanding governance responsibilities and may b...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Harbour Energy lifts output and cash flow as it reshapes portfolio with major US Gulf deal
Positive
Jan 22, 2026
Harbour Energy reported an 84% jump in average production to 474,000 barrels of oil equivalent per day for 2025, boosted by the full-year contribution from acquired Wintershall Dea assets and strong operational execution, while unit operating cost...
Executive/Board Changes
Harbour Energy Director Margareth Øvrum Nominated to Kongsberg Maritime Board
Neutral
Jan 19, 2026
Harbour Energy has announced that non-executive director Margareth Øvrum has been nominated to serve as a shareholder-elected member of the board of Kongsberg Maritime ASA. She is expected to join the Kongsberg Maritime board from the first d...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Harbour Energy Details Financing and Regulatory Status of $3.2bn LLOG Acquisition
Positive
Jan 16, 2026
Harbour Energy has confirmed that its planned $3.2 billion acquisition of US-based LLOG Exploration constitutes a significant transaction under UK listing rules and has set out additional regulatory disclosures on its financial position and key co...
Stock Buyback
Harbour Energy Concludes Current Share Buyback Programme After Cancelling Over 35 Million Shares
Positive
Jan 13, 2026
Harbour Energy has completed a tranche of its share buyback programme, repurchasing and cancelling a total of 594,010 ordinary shares on 12 January 2026 across several trading venues, at volume-weighted average prices around £1.95 per share. ...
Business Operations and StrategyStock Buyback
Harbour Energy Expands Share Buyback, Cutting Share Count Further
Positive
Jan 12, 2026
Harbour Energy has continued executing its previously announced share buyback programme, repurchasing 530,996 ordinary shares on 9 January 2026 across London trading venues for cancellation. Following this latest tranche, the company’s issue...
Stock Buyback
Harbour Energy Continues Buyback With Fresh Share Cancellation
Positive
Jan 9, 2026
Harbour Energy has repurchased 564,766 of its ordinary shares on 8 January 2026 on the London Stock Exchange as part of the share buyback programme launched in August 2025, at a volume-weighted average price of £1.8429 per share, for cancella...
Business Operations and StrategyStock Buyback
Harbour Energy Continues Share Buyback With Further Cancellation of Shares
Positive
Jan 8, 2026
Harbour Energy has repurchased 592,753 of its ordinary shares on 7 January 2026 for cancellation as part of the share buyback programme launched in August 2025, at a volume-weighted average price of £1.8898 per share on the London Stock Excha...
Stock Buyback
Harbour Energy Continues Share Buyback, Cancels Additional Shares
Positive
Jan 7, 2026
Harbour Energy has repurchased 587,839 of its ordinary shares on 6 January 2026 on the London Stock Exchange as part of its ongoing share buyback programme launched in August 2025, with the shares to be cancelled. Following this latest transaction...
Stock BuybackRegulatory Filings and Compliance
Harbour Energy Cancels Further Shares Under Ongoing Buyback Programme
Positive
Jan 6, 2026
Harbour Energy has continued execution of its previously announced share buyback programme, repurchasing 589,626 ordinary shares on 5 January 2026 on the London Stock Exchange for cancellation at a volume-weighted average price of £1.9802 per...
Stock Buyback
Harbour Energy Cancels Additional Shares Under Ongoing Buyback Programme
Positive
Jan 5, 2026
Harbour Energy has repurchased 590,256 of its ordinary shares for cancellation as part of the share buyback programme launched in August 2025, paying a volume-weighted average price of £1.9993 per share in the latest transaction. Following th...
Regulatory Filings and Compliance
Harbour Energy Confirms Updated Total Voting Rights
Neutral
Jan 2, 2026
Harbour Energy has confirmed that as of 31 December 2025 its issued share capital stands at 1,408,918,841 ordinary shares with voting rights, and the company holds no shares in treasury. This updated total voting rights figure provides the officia...
Stock Buyback
Harbour Energy Continues Share Buyback, Reducing Share Count to 1.41 Billion
Positive
Jan 2, 2026
Harbour Energy has continued executing its previously announced share buyback programme, repurchasing 175,244 ordinary shares on 31 December 2025 on the London Stock Exchange for cancellation. Following this latest tranche, the company’s sha...
Stock Buyback
Harbour Energy Continues Share Buyback, Cancels Additional 457,450 Shares
Positive
Dec 31, 2025
Harbour Energy has continued executing its previously announced share buyback programme, repurchasing 457,450 ordinary shares on 30 December 2025 on the London Stock Exchange for cancellation at a volume-weighted average price of £1.9788 per ...
Business Operations and StrategyM&A Transactions
Harbour Energy Named Operator of Major Zama Oil Project Offshore Mexico
Positive
Dec 31, 2025
Harbour Energy has been appointed operator of the Zama oil project offshore Mexico, following agreement by partners Pemex, Grupo Carso and Talos Energy, and subsequent approval by Mexico’s Ministry of Energy. The Zama field, discovered in 20...
Stock Buyback
Harbour Energy Continues Share Buyback, Cancels Further 432,090 Shares
Positive
Dec 30, 2025
Harbour Energy has continued executing its share buyback programme, repurchasing 432,090 ordinary shares on 29 December 2025 on the London Stock Exchange for subsequent cancellation, at a volume-weighted average price of £1.9574 per share. Fo...
Stock Buyback
Harbour Energy Continues Share Buyback, Further Reducing Share Count
Positive
Dec 29, 2025
Harbour Energy has continued executing its previously announced share buyback programme, repurchasing 193,538 ordinary shares on 24 December 2025 on the London Stock Exchange for cancellation, at a volume-weighted average price of £1.9583 per...
Stock BuybackRegulatory Filings and Compliance
Harbour Energy Cancels Further Shares Under Ongoing Buyback Programme
Positive
Dec 24, 2025
Harbour Energy has continued executing its share buyback programme, repurchasing 683,922 ordinary shares for cancellation on 23 December 2025 across multiple trading venues at a volume-weighted average price of just over £2 per share. Followi...
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.