Harbour Energy PLC (LSE:HBR) told investors production averaged 189,000 barrels oil equivalent per day for the first nine months of 2023, lower than the 2022 comparative of 207,000 barrels but in line with its full-year guidance range of 185,000 to 195,000 barrels.
The UK’s largest independent oil and gas producer said its operating costs in the period equated to US$16 per barrel with the company exercising strong cost control amidst reduced volumes.
It said revenue amounted to US$2.9 billion, based on an average post-hedge sales price of US$77 per barrel and 53p per therm for gas.
The oil and gas company expects to generate around US$1 billion of free cash flow over the full year, and in parallel, it expects capital spending to also total US$1 billion for the year.
Harbour highlighted progress with its investment programme, which was showcased by the start up of the Tolmount East operation and a successful well on the Leverett discovery.
Away from the UK, the company invested in international growth projects in Indonesia and Mexico, with ongoing drill campaigns in the Andaman Sea (Indonesia) and the continuing development of the Zama and Kan fields (in Mexico).
Shareholders are meanwhile being rewarded with around US$440 million of returns so far this year, between share buybacks and dividends.
Net debt stood at US$300 million and the company repeated guidance of the "potential" for it to be debt free in 2024.
“We have continued to maximise the value of our UK oil and gas portfolio and to progress our diversification opportunities in Mexico, Indonesia and CCS while maintaining strong cost control and capital discipline,” chief executive Linda Cook said in a statement.
“This has enabled significant free cash flow generation and a robust balance sheet, supporting material shareholder returns over and above our base dividend.”
Cook added: “We also continue to evaluate a number of material M&A opportunities in line with our stated strategy, as we seek to build a global and diverse oil and gas company.
“Recent large transactions in our sector and our own discussions with potential counterparties indicate that market conditions for M&A are improving.
“We remain disciplined, balancing the return of excess capital to shareholders with ensuring flexibility for meaningful, value accretive M&A which would support shareholder returns over the longer run."
In London, Harbour shares were up 3.21% in Wednesday’s early deals to 225.30p.