HARBOUR ENERGY (HBR) – Oil & Gas
Harbour Energy announced it has won the contract from the Mexican government and its commercial partners to operate the offshore Zama oil project.
The firm has a 32.2% interest in Zama, while Mexican state oil company PEMEX has a 50.4% stake and Talos Energy Mexico has a 17.4% stake.
Discovered in 2017, the Zama field contains an estimated 750 million boe (barrels of oil equivalent) of recoverable resources.
| Price: 198.6p +0.2% | P/E: n/a |
| Market Cap: £3.3bn | Yield: 10% |
Harbour operates two significant projects in Mexico, Kan – where it has a 70% interest and the project holds an estimated 150 million boe of recoverable resources – and now the much larger Zama.
The firm also announced just before Christmas it had an agreed to acquire LLOG Exploration which will give it a fully operated oil weighted offshore portfolio in the US.
There has been a lot of debate over the 10% dividend yield on Harbour shares, as a yield that high normally signals a company is in trouble and/or the market thinks it will have to cut its payout.
In fact, Harbour’s 2025 dividend payout of $455 million was more than twice covered by free cash flow and the firm started a $100 million buyback.
In addition, the company has raised its free cash flow outlook so it seems unlikely to us the payout will be cut.
Read the press release here: https://www.harbourenergy.com/investors/
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