2021 Operational highlights

• Completed merger with Premier (the Merger); realisation of synergies progressing as planned
• Production of 175 kboepd (2020: 173 kboepd); Q4 production of 214 kboepd
• Successful drilling at J-Area, Elgin Franklin, AELE, Beryl (UK) and Natuna and Tuna (Indonesia)
• 2P reserves increased to 488 mmboe, representing 157 per cent 2P reserves replacement
• Working practices adapted to protect our employees and contractors from COVID-19; Total Recordable Injury Rate of 1.27 per million hours worked
• Net Zero 2035 progress includes emissions reduction actions, continued involvement in two UK CCS projects and offsetting more than 25 per cent of our emissions
• Alignment of portfolio with Harbour’s strategy, including exits from Sea Lion (Falkland Islands) and Brazil exploration licences

2021 Financial highlights

• Operating cash flow of $1.6 billion (2020: $1.4 billion). Free cash flow of $678 million (2020: $562 million)
• Profit after tax of $101 million (2020: Loss after tax of $778 million)
• EBITDAX increased to $2.4 billion, up 36 per cent (2020: $1.8 billion)
• Opex and total capex lower than forecast at $15.2/boe (2020: $11.2/boe) and $935 million (2020: $698 million) respectively
• Completed $500 million debut bond issuance with a coupon of 5.5 per cent
• Year-end net debt of $2.3 billion (2020: $1.5 billion) before unamortised fees and 0.9x leverage (2020: 0.8x), in line with target of less than 1.5x through the commodity price cycle
• Introduction of an initial $200 million annual dividend; proposed final dividend of $100 million (11 cents per share) for full year 2021 to be paid in May 2022 following shareholder approval

2022 Outlook

• Production of 195-210 kboepd, a c. 15 per cent increase versus 2021; production of 219 kboepd to end February
• Tolmount (UK): platform commissioning largely complete; start-up underway
• Opex and total capex guidance unchanged at $15-16/boe and $1.3 billion respectively
• Drilling at Catcher, J-Area, Beryl (UK); Natuna and Andaman II (Indonesia); and Chim Sao (Vietnam)
• Continued progress to Net Zero by 2035, including activity on our UK CCS projects
• At $100 /bbl, 200 p/therm, forecast free cash flow (after tax and $200 million dividend) of $1.5-1.7 billion with potential to be net debt free in 2023

Linda Z Cook, Chief Executive Officer, commented:
"2021 was a transformational year with completion of the Merger, our third significant transaction since 2017. As a result, we became a public company with a global footprint and the largest London-listed independent oil and gas company.

With our scale, our commitment to producing safely and responsibly, our robust balance sheet and track record of successful M&A, I believe we are well placed to deliver value creation, growth and shareholder returns.

I am proud of all we accomplished in our first year as a listed company and excited for our future."

KeyFacts Energy: Harbour Energy UK country profile