By Jaime Llinares Taboada
Harbor Energy PLC on Wednesday repeated production, cost and capital expenditure guidance for 2022, and said it may consider additional shareholder returns this year.
The UK oil-and-gas producer continues to forecast 2022 production of 195,000-210,000 oil-equivalent barrels a day at an operating cost of $15-$16 a barrel with capital expenditure of $1.3 billion.
In addition, Harbor said it continues to expect to generate between $1.5 billion and $1.7 billion of free cash flow in 2022, assuming an oil price of $100 a barrel and a gas price of 200 pence a therm.
“In the event commodity prices remain elevated and we continue to rapidly de-lever, additional shareholder returns will be considered as we progress through the year within the context of our existing capital allocation framework,” the company said.
In the first quarter, production averaged 215,000 barrels a day, operating costs averaged $14.1 a barrel and capex amounted to around $160 million. Revenue was around $1.5 billion, with post-hedging prices of $84 a barrel for oil sales and $66 per oil-equivalent barrel for gas. Net debt was cut to $1.7 billion as at March 31 from $2.3 billion on Dec. 31.
“We have had a strong start to the year. Our increased production reflects the addition of the Premier portfolio, improved operating reliability and increased UK drilling activity,” Chief Executive Linda Z Cook said.
Harbor Energy is due to enter London’s blue-chip FTSE 100 index on Thursday. Its share price is up 30% year-to-date and its market capitalization has risen above 4 billion pounds ($4.93 billion), helped by the increase in global oil and gas prices.
Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT
Credit: www.marketwatch.com /