- First-half production reached a record 509,000 barrels of oil equivalent a day, prompting Harbour to lift its full-year guidance.
- The company generated $1.8 billion of free cash flow and expects to return at least $800 million to shareholders during 2026.
- Acquisitions have increased Harbour’s scale and international diversification, although debt, operating costs and safety indicators have also risen.
Harbour Energy has raised its production and free cash flow forecasts for the second time this year after acquisitions, higher commodity prices and strong operating performance delivered record first-half output.
Production averaged 509,000 barrels of oil equivalent a day during the six months to June, 4% above the corresponding period of 2025. Harbour increased its full-year guidance from 480,000–500,000 boe/d to 490,000–500,000 boe/d after July output remained close to 510,000 boe/d.
Revenue increased by approximately 20% to $6.4 billion, while adjusted earnings before interest, tax, depreciation, amortisation and exploration costs reached $4.5 billion. Reported profit after tax was $436 million, compared with a $200 million loss in the first half of last year.
Chief executive Linda Cook said Harbour had achieved “record production of more than 500,000 barrels per day and another upgrade to our full year guidance”. Higher oil and European gas prices enabled the company to raise its 2026 free cash flow forecast from $1.4 billion to around $1.8 billion.
Harbour also generated $1.8 billion of free cash flow during the first half, up approximately 30%. The similarity between the half-year result and full-year forecast reflects the timing of tax payments and other cash outflows, which are weighted towards the second half rather than an expectation of no further operational cash generation.
The revised outlook assumes average H2 prices of $80 a barrel for dated Brent and $16 per thousand cubic feet for European gas. That makes the forecast sensitive to the Iran conflict and other factors supporting commodity prices, despite Harbour’s increasingly diversified production base.
The company expects to return at least $800 million to shareholders during 2026, including at least $500 million above its minimum annual dividend. It has announced a $250 million share buyback and will pay an interim dividend worth approximately $150 million in September.
Harbour completed its $3.2 billion acquisition of US producer LLOG Exploration in February and subsequently closed the purchase of Waldorf’s UK assets. It has also sold operations in Indonesia and is progressing projects in Norway, Mexico and Argentina.
The LLOG acquisition helped increase output but also lifted period-end net debt from $4.4 billion in December to $5.4 billion in June. Leverage remained comparatively modest at 0.7 times trailing EBITDAX, while Harbour refinanced a $3 billion revolving credit facility and extended its maturity to 2031.
The results were not uniformly stronger. Unit operating costs increased from $12.40 to $13.30 per barrel of oil equivalent, while the total recordable injury rate rose from 1.1 to 1.5 incidents per million hours worked. Harbour attributed the safety deterioration mainly to several minor incidents in Norway, but the increase tempers an otherwise positive operational report.
Shares rose by approximately 7% following the announcement, although first-half adjusted EBITDAX was slightly below market expectations. Cook said the ultimate scale and timing of further distributions would depend partly on full-year cash generation and commodity prices.
Harbour’s performance also illustrates how its business model has changed since the acquisition of Wintershall Dea. The company remains one of the largest UK North Sea producers, but Britain now represents less than a third of output rather than the overwhelming majority.
That diversification allows Harbour to retain and consolidate UK assets while reducing its exposure to the Energy Profits Levy. Its purchase of Waldorf provides a contrast with BP’s planned North Sea exit: mature British production can remain attractive to a focused independent with nearby infrastructure and a different cost base, even when it no longer meets a supermajor’s investment criteria.
The principal test will be whether Harbour converts its larger portfolio into sustained cash generation after the present period of elevated prices. Its stronger guidance is underpinned by genuine operational progress, but the rapid increase in shareholder returns still depends partly on commodity conditions that the company cannot control.
