Harbour Energy has reported an 84% year-over-year (YoY) increase in average production levels, reaching 474,000 barrels of oil equivalent per day (boepd) for the year ending 31 December 2025.
For the year 2024, the UK-based oil and gas company produced 258,000boepd.
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Harbour Energy said that the boost in production in 2025 was primarily due to the full-year contributions from Wintershall Dea and effective operational execution. The output comprised approximately 40% liquids, 40% European gas and 20% other gas.
The company said that it reduced its unit operating costs to $13 per barrel of oil equivalent (boe), reflecting a decrease of around 20% from the previous year. This was achieved through strategic asset additions, robust volumes, cost management efforts and divestments in Vietnam.
Harbour Energy reported a total recordable injury rate of 1.1 per million hours worked and a notable reduction in net equity greenhouse gas intensity to 14kg of carbon dioxide/boe.
The company said that it has progressed several short-cycle investments aimed at bolstering near-term production. Development wells have been completed in regions including Norway, the UK, Argentina, Germany and Egypt.
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By GlobalDataKey projects such as Fenix in Argentina and Maria Phase 2 in Norway have been concluded successfully. Additionally, five subsea developments in Norway are scheduled to begin within two years, with first gas from Dvalin North anticipated by mid-2026.
In Egypt, a final investment decision has been made for developing the Fayoum-Messinian field near West Nile Delta infrastructure, targeting first gas by late 2026.
Exploration and appraisal activities have shown success in both Norway and Egypt, as illustrated by the EZZ-1 field in Dissouq commencing operations in January 2026, said the company.
Harbour Energy secured nine exploration licences in Norway following the Awards in Predefined Areas 2025 licensing round. In Denmark, carbon capture and storage initiatives are advancing, with commercial operations at the Greensand Future project expected by year-end.
On a strategic level, Harbour Energy gained operatorship of the Zama oilfield in Mexico and submitted a phased development plan for regulatory approval. In Argentina, the company’s Southern Energy LNG project remains on schedule to begin operations by late 2027.
Following the integration of Wintershall Dea assets, Harbour Energy exited its Transitional Services Agreement as planned and is focusing on system simplification and efficiency improvements. Portfolio management included divestments in Vietnam and decisions to exit several exploration licences.
In December, Harbour Energy unveiled several strategic transactions including selling Indonesian assets for $215m, acquiring Waldorf in the UK for $170m (£125.62m) and purchasing LLOG Exploration in the US for $3.2bn.
The acquisition of LLOG is anticipated to close by the first quarter of 2026, pending customary conditions including HSR Act compliance in the US.
Financially, Harbour Energy reported realised post-hedge prices of $69 per barrel for oil and $13 per million standard cubic feet for European gas. Revenues rose to $10.3bn with earnings before interest, taxes, depreciation, amortisation and exploration expenses at approximately $7.1bn due to increased production levels.
Total capital expenditure (capex) came in lower than forecasted at $2.3bn.
Free cash flow increased to $1.1bn with net debt reduced to $4.4bn by year-end. A hedge position provided a mark-to-market gain of $500m.
Looking to 2026, Harbour Energy anticipates production of 435,000–455,000boepd with unit operating costs of around $13.5/boe. Total capex is projected at $1.7bn–1.9bn with a free cash flow outlook of around $600m at current commodity prices.
Harbour Energy CEO Linda Z Cook said: “2025 was another year of strong delivery, driven by excellent operational performance, strict capital discipline and the successful integration of new assets. This drove production to the top end of guidance and stronger than anticipated free cash flow generation, despite softer commodity prices.
“We materially advanced our strategy during the year. This included improving our cost structure in the UK, building momentum at our key development projects in Mexico and Argentina, and announcing the divestment of non-core assets and disciplined M&A [mergers and acquisitions]. Collectively these activities will enhance our portfolio and materially increase our future free cash flow.
“Looking to 2026, our priorities include delivering another year of outstanding operational performance, continuing to mature our organic growth opportunities, strengthening the balance sheet and completing the announced transactions, all of which position us better for the future.”
