Harbour Energy to acquire Waldorf subsidiaries for $170m

Core Viewpoint - Harbour Energy has signed an agreement to acquire substantially all subsidiaries of Waldorf Energy Partners and Waldorf Production for $170 million, which will enhance its operational stake in the UK North Sea and improve its financial position [1][2]. Group 1: Acquisition Details - The acquisition will increase Harbour's stake in the Catcher field from 50% to 90% and provide a 29.5% non-operated interest in the Kraken oilfield [1][2]. - The transaction is expected to add oil-weighted production of 20,000 barrels of oil equivalent per day and 2P reserves of 35 million barrels of oil equivalent [3]. Group 2: Financial Implications - The company plans to use existing liquidity to fund the transaction, which is anticipated to increase free cash flow and strengthen UK operations [2]. - Financial synergies are expected to be realized through the release of an estimated $350 million in cash currently allocated for Waldorf's decommissioning liabilities [5]. - Waldorf's decommissioning provisions stood at $720 million as of June 30, 2025, and the estimated total ring fence tax losses are around $2.45 billion for corporation tax, $1.8 billion for supplementary charges, and $60 million for energy profits levy [5][6]. Group 3: Strategic Importance - The acquisition stabilizes the Catcher joint venture partnership and delivers immediate cash flow benefits, enhancing the long-term sustainability of Harbour's UK business [4]. - The integration of Waldorf's non-operated assets is expected to generate operational efficiencies within Harbour's UK organization [4].