Harbour Energy half-year results 2026: record production fuels $250 million buyback

Harbour Energy has delivered a strong first half, combining record production with higher commodity prices, improved full-year guidance and a fresh $250 million share buyback.

The headline numbers are encouraging. Revenue rose by around 20% to $6.4 billion, free cash flow increased by approximately 30% to $1.8 billion and reported profit after tax reached $436 million, reversing a $174 million loss in the comparable period.

For investors, the important point is that Harbour is converting operational performance into cash returns while continuing to reduce leverage following its $3.2 billion acquisition of LLOG Exploration.

Harbour Energy's key half-year figures

Metric	H1 2026	H1 2025	Change
Production	509 kboepd	488 kboepd	Up 4%
Revenue and other income	$6.41 billion	$5.27 billion	Up around 20%
Adjusted EBITDAX	$4.47 billion	$3.89 billion	Up 15%
Reported profit after tax	$436 million	$174 million loss	Improved
Adjusted profit after tax	$562 million	$410 million	Up 37%
Free cash flow	$1.77 billion	$1.36 billion	Up around 30%
Unit operating costs	$13.3/boe	$12.4/boe	Up 7%
Adjusted earnings per share	28 cents	22 cents	Up 27%
Period-end net debt	$5.17 billion	$4.31 billion at 2025 year end	Increased
Leverage	0.7x	0.6x at 2025 year end	Increased

EBITDAX is earnings before interest, tax, depreciation, amortisation and exploration expenses. It is commonly used by oil and gas businesses to show underlying operating performance before financing and non-cash charges.

Investors can read the original company announcement for the complete financial statements and accompanying notes.

Record production drives the upgrade

Production averaged 509 thousand barrels of oil equivalent per day, or kboepd, during the period. That was 4% higher than the previous year and represented a new record for Harbour.

The increase was largely driven by the LLOG portfolio, which contributed from February. This more than offset asset disposals in Vietnam and Indonesia, as well as natural decline from Harbour's mature UK fields.

Norway was another strong contributor. Production there increased to 180 kboepd from 173 kboepd, supported by good reservoir performance and new developments. Dvalin North started ahead of schedule and under budget, while further projects are expected to come online during the second half.

The portfolio operated at 93% efficiency, and July production remained strong at 510 kboepd. Harbour has therefore narrowed its full-year production guidance upwards to 490-500 kboepd, compared with 480-500 kboepd previously.

That guidance improvement matters because higher production can spread fixed costs across more barrels and support cash generation. However, this benefit is being partly offset by rising unit costs.

Higher prices deliver stronger cash flow

Harbour realised post-hedging oil prices of $84 per barrel, up from $71 per barrel. Its realised European gas price increased to $14.4 per thousand cubic feet from $13.4.

Combined with higher production, these prices lifted revenue and adjusted EBITDAX. Free cash flow rose to $1.77 billion, although management highlighted that tax payments, maintenance and capital expenditure are weighted towards the second half.

Harbour has upgraded its full-year free cash flow outlook from around $1.4 billion to approximately $1.8 billion. This assumes second-half Dated Brent oil prices of $80 per barrel and European gas prices of $16 per thousand cubic feet.

The upgrade is clearly positive, but it remains sensitive to commodity prices. Oil and gas prices can move quickly, while Harbour's hedging programme means realised prices will not always follow spot markets directly. The group recorded $270 million of realised hedging losses during the half, compared with $28 million a year earlier.

Shareholder returns move up a gear

The board has approved an interim dividend of 8.05 cents per voting ordinary share, costing approximately $150 million. It is due to be paid on 24 September 2026 to shareholders on the register on 14 August.

More significantly, Harbour has announced a new $250 million share buyback. The programme begins immediately and is expected to be completed around the end of 2026, with a final deadline of 5 March 2027.

Based on the upgraded free cash flow outlook, Harbour now expects to return at least $800 million to shareholders during 2026. This includes at least $500 million of additional returns above its minimum annual dividend.

The buyback should reduce the number of shares in circulation because purchased shares will be cancelled. All else being equal, that can increase each remaining share's claim on future earnings and cash flow.

You can also view the dedicated Harbour Energy PLC share page for ongoing company coverage.

Acquisitions are reshaping the portfolio

Harbour completed the $3.2 billion LLOG acquisition in February, establishing a new core operation in the US Gulf of America. The acquired assets contributed 33 kboepd when averaged across the full six-month reporting period.

The group also sold its Indonesian assets for $215 million and completed the Waldorf acquisition after the period ended. Waldorf adds approximately 14 kboepd of oil-weighted UK production and around 25 million barrels of oil equivalent of proved and probable reserves.

Harbour paid $163 million at completion for the settlement of creditor claims. The transaction also immediately released more than $400 million of cash by replacing Waldorf's cash collateral for decommissioning obligations with letters of credit and surety bonds.

These deals strengthen and simplify the portfolio, but they also introduce integration and execution risk. Harbour must show that the acquired assets can deliver the promised production, operational synergies and cash flow over time.

The less comfortable parts of the results

Unit operating costs increased to $13.3 per barrel of oil equivalent from $12.4. Harbour attributed this to currency headwinds, higher fuel costs and the near-term cost profile of the LLOG assets as production ramps up.

Full-year operating cost guidance remains approximately $14.5 per barrel, reflecting planned maintenance and the addition of Waldorf's assets. Total capital expenditure guidance is unchanged at $2.2 billion to $2.4 billion.

Tax also remains substantial. Harbour reported a tax expense of $1.92 billion and an effective tax rate of 81%. That reflects the high tax rates applying to oil and gas production in the UK and Norway.

Safety performance moved in the wrong direction. The total recordable injury rate increased from 1.1 to 1.5 incidents per million hours worked, mainly because of several mostly minor incidents in Norway. Process safety events also increased.

Net debt rose to $5.17 billion from $4.31 billion at the end of 2025, primarily because of the LLOG acquisition. Leverage remained relatively low at 0.7 times last-12-month EBITDAX, while Harbour retained investment-grade ratings from Moody's, S&P and Fitch. The group has also refinanced its $3.0 billion revolving credit facility, extending its maturity to 2031.

What investors should watch in the second half

Harbour's first-half performance gives management room to accelerate both debt reduction and shareholder returns. Record production, higher realised prices and a stronger cash flow outlook are the main positives.

Attention now turns to whether production remains within the upgraded 490-500 kboepd range as maintenance activity increases. Investors should also monitor unit costs, second-half tax payments and the pace of debt reduction following the LLOG deal.

Project delivery will be another important test. Harbour expects further Norwegian developments to start producing, while decisions are approaching for projects in the US, Norway and the UK.

The $250 million buyback is a tangible vote of confidence from the board. Even so, delivery still depends on operational reliability, successful integration of acquired assets and commodity prices remaining supportive enough to sustain the upgraded $1.8 billion free cash flow outlook.