Harbour Energy (HBR) AI Stock Analysis

• Market Cap: £2.55B
• Dividend Yield: 13.57%
• Average Volume (3M): 5.28M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.86
• Revenue Growth: 29.33%
• EPS Growth: N/A
• Country: UK
• Employees: 3,019
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.08
• Shares Outstanding: 1,440,116,200
• 10 Day Avg. Volume: 7,110,940
• 30 Day Avg. Volume: 5,278,447
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.05
• Price to Cash Flow (P/CF): 2.00
• P/FCF Ratio: 3.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 290.14p
• Price Target Upside: 91.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Harbour Energy's strong revenue growth and operational efficiency are significant strengths, though profitability challenges and high leverage remain concerns. Positive sentiment due to strategic acquisitions and improved production outlooks contribute to a favorable outlook. However, technical weaknesses and a negative P/E ratio indicate caution.

Positive Factors

Acquisition and Expansion

The acquisition of Wintershall DEA is expected to significantly increase production to potentially 450-475k boepd.

Production Increase

The company's October production averaged 503kboe/d, showcasing the new scale of Harbour Energy after the Wintershall Dea completion.

Shareholder Returns

Harbour continues to look cheap alongside an attractive shareholder returns policy, including both dividends and share buybacks.

Negative Factors

Market Perception

The share price movement on the results announcement indicates that the market does not believe the free cash flow generation potential.

Taxation Impact

The impact of windfall tax on the UK assets is now abundantly clear- the UK now has the lowest post-tax return on investment across the entire business.

Valuation

The risked NPV10 valuation for Harbour has been cut by approximately 28%, leading to a lower target price.

Harbour Energy Business Overview & Revenue Model

Company Description

Harbour Energy (HBR) is an independent oil and gas company headquartered in the United Kingdom. The company operates primarily in the exploration, development, and production of hydrocarbons. Harbour Energy is active in key regions including the North Sea, Southeast Asia, and the Americas, focusing on maximizing the value of its assets through efficient resource management and technological innovation.

How the Company Makes Money

Harbour Energy makes money primarily through the exploration, extraction, and sale of oil and natural gas. The company's revenue model is centered on selling these extracted hydrocarbons to various markets, including domestic and international refineries, energy companies, and industrial clients. Revenue streams include crude oil sales, natural gas sales, and, to a lesser extent, the sale of natural gas liquids (NGLs). Harbour Energy's earnings are significantly influenced by global oil and gas prices, production volumes, and operational efficiencies. Key partnerships with other energy firms and agreements with host governments also play a crucial role in facilitating access to resources and ensuring the sustainability of its operations.

Harbour Energy Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
3.71B	5.43B	3.62B	2.41B	2.36B
	Gross Profit
1.36B	2.59B	1.16B	566.40M	841.29M
	EBIT
913.00M	2.46B	593.40M	-350.30M	740.11M
	EBITDA
2.29B	3.70B	2.20B	546.10M	1.65B
	Net Income Common Stockholders
32.00M	8.00M	101.10M	-778.40M	164.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
280.00M	524.00M	702.00M	445.40M	573.18M
	Total Assets
9.90B	12.57B	14.50B	9.48B	11.33B
	Total Debt
1.18B	2.06B	3.54B	2.32B	2.97B
	Net Debt
902.00M	1.56B	2.84B	1.88B	2.39B
	Total Liabilities
8.36B	11.54B	14.03B	8.42B	9.42B
	Stockholders Equity
1.54B	1.02B	473.50M	1.07B	1.91B
Cash Flow		Free Cash Flow
1.34B	2.52B	1.00B	775.30M	988.38M
	Operating Cash Flow
2.14B	3.13B	1.61B	1.37B	1.52B
	Investing Cash Flow
-693.00M	-628.60M	-571.00M	-603.20M	-2.78B
	Financing Cash Flow
-1.67B	-2.67B	-787.20M	-899.40M	1.51B

Harbour Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 151.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 151.2 is below the 20-day moving average (MA) of 179.54, below the 50-day MA of 196.20, and below the 200-day MA of 239.19, indicating a bearish trend. The MACD of -3.39 indicates Negative momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 83.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HBR.

Harbour Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHEL	74 Outperform	£137.77B	11.54	8.74%	4.68%	-8.37%	-13.60%
HBR	63 Neutral	£2.55B	21.62	-2.87%	13.57%	29.33%	―
BP	63 Neutral	£52.12B	178.33	0.61%	7.30%	-12.44%	-98.02%
Sector *	57 Neutral	$7.57B	4.34	-4.83%	6.50%	-0.19%	-64.60%

Harbour Energy Corporate Events

Harbour Energy Sees Shift in Shareholder Dynamics with New Acquisition

Harbour Energy PLC announced that Letterone Investment Holdings S.A., a Luxembourg-based entity, has crossed a significant threshold in acquiring voting rights in the company, now holding 3.3143% of the voting rights. This acquisition could potentially impact Harbour Energy’s corporate governance and strategic decisions, reflecting a shift in shareholder dynamics that stakeholders should monitor closely.

Spark’s Take on GB:HBR Stock

According to Spark, TipRanks’ AI Analyst, GB:HBR is a Neutral.

Harbour Energy’s strong revenue growth and operational efficiency are significant strengths, though profitability challenges and high leverage remain concerns. Positive sentiment due to strategic acquisitions and improved production outlooks contribute to a favorable outlook. However, technical weaknesses and a negative P/E ratio indicate caution.

To see Spark’s full report on GB:HBR stock, click here.

Harbour Energy Grants Deferred Bonus Awards to Executive Directors

Harbour Energy has announced the grant of Deferred Bonus Awards to its Executive Directors under the 2017 Long Term Incentive Plan. Linda Z. Cook and Alexander Krane received awards representing 25% and 50% of their 2024 Annual Bonuses, respectively, which will vest in three years, reflecting the company’s ongoing commitment to aligning executive compensation with long-term shareholder value.

Spark’s Take on GB:HBR Stock

According to Spark, TipRanks’ AI Analyst, GB:HBR is a Neutral.

Harbour Energy’s strong revenue growth and operational efficiency are significant strengths, although profitability challenges and high leverage remain concerns. Positive earnings call sentiment due to strategic acquisitions and improved production outlooks contribute to a favorable outlook, despite technical and valuation weaknesses.

To see Spark’s full report on GB:HBR stock, click here.

Harbour Energy Announces Vesting of Deferred Bonus Awards for Executives

Harbour Energy announced the vesting of Deferred Bonus Awards for its executives, Linda Z. Cook and Alexander Krane, under the 2017 Long Term Incentive Plan. The awards, granted in March 2022, were subject to a three-year deferral period and have now vested, with shares released to cover tax liabilities and the remainder retained by the executives. This move reflects Harbour Energy’s commitment to aligning executive compensation with long-term company performance, potentially impacting stakeholder confidence and market perception positively.

Spark’s Take on GB:HBR Stock

According to Spark, TipRanks’ AI Analyst, GB:HBR is a Neutral.

Harbour Energy’s strong revenue growth and operational efficiency are significant strengths, although profitability challenges and high leverage remain concerns. Positive earnings call sentiment due to strategic acquisitions and improved production outlooks contribute to a favorable outlook, despite technical and valuation weaknesses.

To see Spark’s full report on GB:HBR stock, click here.

Harbour Energy Releases 2024 Annual Report and 2025 AGM Notice

Harbour Energy has published its 2024 Annual Report and the notice for its 2025 Annual General Meeting, which will be held on May 8, 2025. The documents, available on the company’s website and submitted to the Financial Conduct Authority, include details on the company’s principal risks, directors’ responsibilities, and related party transactions, reflecting its commitment to transparency and regulatory compliance.

Harbour Energy Prices $900 Million Senior Notes Offering

Harbour Energy has announced the pricing of a $900 million offering of 6.327% senior notes due 2035. The proceeds from this offering will be used to finance the purchase of its outstanding 5.5% Senior Notes due 2026, repay existing debt, and cover general corporate purposes and related costs. This strategic financial move is expected to enhance Harbour’s financial flexibility and support its ongoing operations.

Harbour Energy Announces Share Sale by EIG Asset Management

Harbour Energy plc announced a transaction involving the sale of ordinary shares by EIG Asset Management, LLC, a person closely associated with R. Blair Thomas, the Chairman of Harbour Energy. The transaction involved the sale of 19,925 shares at a price of GBP 2.06 each, totaling GBP 41,045.50, conducted on 21 March 2025. This sale could impact the company’s stock market performance and stakeholder perceptions regarding the company’s financial strategies.

Harbour Energy Announces Significant Share Transaction

Harbour Energy plc announced a transaction involving the sale of 6,653,009 ordinary shares by EIG Separate Investments (Cayman) LP, a person closely associated with the company’s Chairman, R. Blair Thomas. The shares were sold at a price of GBP 2.06 each, amounting to a total of GBP 13,705,198.54. This transaction may impact the company’s shareholder structure and could have implications for its market positioning and stakeholder interests.

Harbour Energy Director Increases Stake with Share Purchase

Harbour Energy announced that Alan Ferguson, an Independent Non-Executive Director, has acquired 21,436 ordinary shares of the company at an average price of 186.59 pence per share. This transaction increases Ferguson’s direct interest in the company to 45,639 ordinary shares, representing 0.003% of the company’s issued share capital. This purchase reflects a vote of confidence in the company’s future prospects and may positively influence stakeholder perceptions.

Harbour Energy CEO Increases Stake with Significant Share Purchase

Harbour Energy announced that its CEO, Linda Z. Cook, has purchased 75,000 ordinary shares of the company at an average price of 189.1446 pence per share. This purchase increases Cook’s total shareholding to 8,950,490 shares, representing 0.62% of the company’s issued share capital, signaling confidence in the company’s future prospects.

Harbour Energy’s Transformative Year and Future Outlook

Harbour Energy reported a transformative year in 2024, marked by the acquisition of Wintershall Dea, which significantly increased production and reserves. Despite a loss after tax due to high effective tax rates, the company achieved substantial revenue growth and maintained strong operational performance. Looking ahead to 2025, Harbour Energy anticipates further production increases and reduced operating costs, with a focus on maximizing asset value and maintaining safety standards.

Harbour Energy Outlines Strategic Goals for 2025-2027

Harbour Energy has announced its strategic goals for 2025 to 2027, focusing on maintaining an average production of around 450 kboepd and reducing operating costs to less than $15/boe. The company plans to cut annual capital expenditure by 25% in 2026 and 2027 compared to 2025, aiming for material free cash flow generation and a competitive annual dividend. Harbour Energy also intends to reduce debt and potentially increase shareholder returns through share buybacks. The company emphasizes its growth through acquisitions and strategic investments, including CO2 storage, to sustain cash-generative production and enhance its portfolio.

Harbour Energy Announces Total Voting Rights Update

Harbour Energy plc has announced its total voting rights as of 28 February 2025, with an issued share capital consisting of 1,440,116,191 Ordinary Shares with voting rights. This figure is significant for shareholders as it serves as the denominator for calculating their interest in the company’s share capital under the FCA’s Disclosure and Transparency Rules.

Harbour Energy’s Transformative Year Driven by Wintershall Dea Acquisition

Harbour Energy reported a transformative year in 2024 following the acquisition of Wintershall Dea’s asset portfolio, which led to a 40% increase in production, improved margins, and diversified reserves. The company successfully advanced several projects across its international portfolio, including in the UK, Argentina, and Indonesia, and made substantial revenue gains, although its financial performance was impacted by non-cash accounting charges due to changes in the UK fiscal regime. Looking forward, Harbour Energy projects increased production and reduced costs for 2025, driven by a full year’s contribution from Wintershall Dea assets, and plans to continue its strategic capital allocation, including exiting non-core assets like its Vietnam business.