Harbour Energy Reports $9.8 Billion in Revenue and Raises 2026 Production Guidance
Key Facts
Harbour Energy said on November 5 that revenue reached $9.8 billion in the nine months ended September 30, 2026, up from $7.6 billion in the corresponding period of 2025, while EBITDAX rose to $6.8 billion from $5.4 billion, a 26% increase. The company said revenue and EBITDAX growth reflected higher production and improved realized commodity prices. Average production was 501,000 barrels of oil equivalent per day, up 6% from 473,000 a year earlier. Third-quarter production was 484,000 barrels per day, up 9% year on year. The company provided the figures in an unaudited trading and operations update covering the period through the end of September.
The company attributed production growth to the addition of LLOG in the United States, effective February, and Waldorf in the United Kingdom, effective July, saying they more than offset the impact of its exits from Indonesia and Vietnam and the natural decline in UK production. Chief Executive Linda Cook cited continued strong operational performance and the successful integration of the two companies as factors behind higher third-quarter production. Harbour said operational reliability in Norway, development drilling at the Njord project and accelerated projects supported performance. Liquids accounted for about 40% of production, European gas for 40% and other gas for 20% during the period. Meanwhile, unit operating costs rose to $13.9 per barrel of oil equivalent from $12.8 in the corresponding period.
Realized prices after hedging improved alongside higher production: the oil price was $85 per barrel in the nine months, compared with $71 in the corresponding period of 2025. The realized European gas price after hedging rose to $16.1 per thousand cubic feet from $13.4. Revenue and operating profit growth flowed through to free cash flow, which doubled to $2.4 billion from $1.2 billion a year earlier. Capital expenditure, including decommissioning, was $1.6 billion through the end of September, unchanged from the corresponding period. The figures combine higher production and improved prices, while capital expenditure remained at its previous level.
Net debt fell to $5.1 billion at the end of September from $5.4 billion on June 30, 2026, and leverage declined to 0.6 times from 0.7 times. Harbour said it refinanced a $3 billion revolving credit facility on improved terms and extended its maturity to 2031. It also issued $750 million of bonds in August at a yield of 5.929%, using the net proceeds, together with $250 million in cash, to fully repay the $1 billion LLOG acquisition bridge financing. On its outlook, the company raised its 2026 production guidance range to 500,000–505,000 barrels of oil equivalent per day from 490,000–500,000 previously. It attributed the higher guidance to operational performance, completion of planned maintenance in Norway and the United Kingdom, and limited hurricane-related downtime in the United States.
Harbour raised its 2026 free cash flow forecast to about $2.6 billion from $1.8 billion previously, supported by expectations for higher production and prices. It cited working capital build-up and hedging as offsetting factors and also expected tax payments of about $1.8 billion in the fourth quarter. In the market, the stock fell 2.8% to 272.2 pence during the November 5 session, despite the higher production and cash flow guidance. The shares had risen about 30% since early February and opened the session at 280 pence before falling to a level near 270.51 pence. The company has scheduled its next trading and operations update for January 21, 2027, and will report full-year 2026 results on March 4, 2027.
In Norway, the company said the Gjøa North and Ofelia projects received final investment decisions in the second quarter, and it is targeting five additional projects reaching that stage by the end of 2026. The additional projects could enable it to replace 100% of its Norwegian reserves, according to the company. In Argentina, the Southern Energy liquefied natural gas export project, in which Harbour holds a 15% stake, is targeting a start-up near the end of 2027. The project’s targeted capacity is 6 million tonnes a year. These dates put the projects among the company’s operational milestones to follow after the January update and full-year results.