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Investing.com -- Harbour Energy (LON:HBR) anticipates a substantial production increase in 2025 due to the full-year impact of assets acquired from Wintershall Dea in 2024.
The company's 2024 annual report includes a production forecast of 450,000-475,000 barrels of oil equivalent per day (boepd) for 2025.
This represents an increase from 2024's production of 258,000 boepd. The company's September 3rd acquisition boosted production, resulting in a 40% year-over-year increase in the final four months of 2024.
In 2024, production was split between liquids (40%), European gas (45%), and non-European gas (15%).
Unit operating costs were $16.5 per barrel of oil equivalent (boe), as expected. Harbour forecasts a decrease in unit operating costs to approximately $14 per boe in 2025 due to the inclusion of Wintershall Dea's lower-cost assets.
The UK-based oil company reported 2024 revenue of $6.1 billion, an increase from $3.7 billion in 2023.
This growth was primarily driven by higher production. EBITDAX increased to $4.1 billion from $2.7 billion in 2023.
However, the company expects non-cash accounting charges related to the UK tax regime to impact pre-tax and post-tax income.
Harbour Energy also made progress on several development and exploration projects during the year. New developments such as Fenix in Argentina and Talbot in the UK commenced production, alongside additional wells at sites in Norway and the UK.
Significant exploration success was reported from wells in the North Sea and the Andaman Sea in Indonesia, with discoveries expected to contribute to future output.
The company also advanced growth projects, including Maria Phase 2 in Norway and the Zama oil field development in Mexico.
In the carbon capture and storage (CCS) segment, Harbour Energy made its first final investment decision for the Greensand Future project in Denmark but chose to exit the Camelot licence in the UK.
Following the year-end, the company announced the planned sale of its Vietnam business to EnQuest for $84 million, with completion targeted for 2025.
Harbour Energy forecasts 2025 capital expenditure at $2.4 - $2.6 billion, up from $1.8 billion in 2024.
This increase reflects the addition of Wintershall Dea assets, partially offset by reduced UK investments and lower exploration spending in Indonesia and Mexico.
With Brent crude at $80/barrel and European gas at $13/thousand cubic feet, the company expects to generate approximately $1 billion in free cash flow in 2025.
The company has also secured additional hedges for oil and gas prices through 2027, while planning to distribute $455 million in dividends in 2025, including a final 2024 dividend and an interim 2025 payment.