Harbour Energy (HBR) Q1 2026 TU earnings summary

Executive summary

• Completed strategic LLOG acquisition in February 2026, enhancing resilience and free cash flow growth through 2030.

• Portfolio reshaped with SE Asia exits, entry into US offshore, and focus on five key countries: Norway, UK, Argentina, Mexico, and US, now accounting for 90% of the portfolio.

• Q1 2026 saw strong operational delivery and reliability, with production reaching 506 kboepd, up from 500 kboepd year-over-year, and April at 520 kboepd.

• Advanced multiple new projects and wells across the US, Norway, Argentina, and Egypt.

• Investment grade credit ratings confirmed, with improved free cash flow outlook and potential for material debt reduction and shareholder returns.

Financial highlights

• Q1 2026 production: 506 kboepd (Q1 2025: 500 kboepd); April 2026: 520 kboepd.

• Q1 2026 revenue reached $3.0 billion, up from $2.8 billion in Q1 2025.

• Q1 2026 operating cost: $12.8/boe (Q1 2025: $13/boe).

• Q1 2026 realised oil price: $79/bbl pre-hedge, $76/bbl post-hedge; EU gas: $14.7–14.8/mscf.

• 2026 free cash flow outlook increased to $1.4bn at $80/bbl and $13/mscf, more than doubling previous guidance.

Outlook and guidance

• 2026 production guidance raised to 480–500 kboepd (previously 475–500 kboepd).

• Operating cost guidance maintained at ~$14.5/boe.

• Capex guidance for 2026: $2.2–2.4bn; $2.0–2.3bn p.a. from 2027.

• 2026 FCF payout policy: 45–75% of annual free cash flow, with $600m distributions at low end.

• Shareholder distributions for 2026 expected at ~$0.6bn, with ~$0.8bn for debt reduction.