Harbour Energy PLC (LSE:HBR) shares jumped 10% after the mid-cap oil company reported a strong start to 2025 and tightened its guidance slightly upwards.
Production averaged 500,000 barrels of oil equivalent per day (kboepd) in the first quarter, significantly higher than the 172,000 kboepd recorded a year ago, thanks to the addition of the Wintershall Dea portfolio of Norwegian assets and strong operational performance.
Revenue for the quarter was up $0.9 billion to $2.8 billion, supported by higher European gas prices and lower unit operating costs, which fell to $13 per barrel of oil equivalent (boe) from $18/boe this time last year.
Free cash flow for the quarter was around $0.7 billion, up from $0.1 billion, which helped net debt decrease by $0.5 billion to $4.2 billion.
The company also issued $1.8 billion of senior and hybrid bonds, which it said ensured funding through 2027.
Full-year production guidance was narrowed to 455-475 kboepd, up from 450-475 kboepd.
The recent volatility in energy prices "reinforces the benefits of our diverse portfolio and our prudent approach to risk management," said CEO Linda Cook, with the company's 2025 hedge position covering around 40% of liquids and European gas volumes.
Additional European gas hedges for 2026 and 2027 are in place.
In addition to hedges and the bond issuance, Cook said Harbour is "taking mitigating actions which, together with our improved production outlook, largely offset the impact of lower commodity prices".
"Given this progress, we remain well-positioned to deliver against our capital allocation priorities."