Harbour Energy delivered a transformational first half of 2025, with production more than tripling and free cash flow rising sharply as the company integrated its Wintershall Dea acquisition.
The FTSE 100 company reported average daily production of 488,000 barrels of oil equivalent (kboepd) for the six months to June, up dramatically from 159 kboepd in the same period last year.
The surge was driven by the addition of the Wintershall Dea portfolio, which contributed 173 kboepd from Norway and 75 kboepd from Argentina.
Production was well-balanced across regions and commodities, split roughly 40% liquids, 40% European natural gas, and 20% other natural gas.
New wells came online across key assets, including Maria Phase 2 in Norway, Vaca Muerta in Argentina, and several UK projects.
The elevated level of production is set to continue. Management raised full-year production guidance to 460-475 kboepd from the previous range of 455-475 kboepd, despite completing the sale of its Vietnamese operations in July.
Higher production meant higher revenue for Harbour with the top line surging to $5.3 billion from $1.9 billion year-on-year, whilst EBITDAX rose to $3.9 billion from $1.2 billion.
Lower operating costs played a part in boosting cash flow, as unit operating costs fell roughly 30% to $12.4 per barrel of oil equivalent, down from $18.5/boe.
Free cash flow jumped to $1.36 billion from $380 million in H1 2024, prompting management to upgrade its full-year free cash flow outlook to around $1.0 billion from $900 million previously.
Harbour Energy shareholder returns
Harbour declared an interim dividend of 13.19 cents per share, totalling $227.5 million, marginally above the 13.00 cents paid in H1 2024. More significantly, the company announced a new $100 million share buyback programme.
Combined with the annual dividend policy of $455 million, total expected payouts represent approximately 55% of projected free cash flow for the full year.
Harbour Energy investors cheered the results and shares rose over 14% on Thursday.