Harbour Energy to Enter the U.S. Gulf With $3.2B LLOG Acquisition

Core Insights - Harbour Energy plc has agreed to acquire LLOG Exploration Company LLC for a total consideration of $3.2 billion, expected to close by the end of Q1 2026 [1][8] - The acquisition will significantly enhance Harbour Energy's presence in the Gulf of America and add high-quality, oil-weighted offshore assets to its portfolio [2][6] Acquisition Details - The deal consists of $2.7 billion in cash and $0.5 billion in voting ordinary shares, resulting in LLOC Holdings LLC owning approximately 11% of Harbour's listed voting ordinary shares post-acquisition [1] - The acquisition includes key assets such as the Who Dat, Buckskin, and Leon-Castile fields, which are supported by fully developed infrastructure [2] Reserves and Production Impact - The acquired assets are characterized by low breakeven costs and contain 271 million barrels of oil equivalent (mmboe) of proved and probable (2P) reserves, increasing Harbour's total 2P reserves by 22% [3][8] - The acquisition is expected to double Harbour's production levels and extend the reserve life from seven to eight years, contributing to an overall production of around 500 thousand barrels of oil equivalent per day (kboepd) through 2030 [3] Long-Term Growth Opportunities - The acquisition provides significant upside potential due to LLOG's extensive drilling and lease inventory, allowing for the identification of eight potential wells to be drilled through 2026 and 2027 [4] - Harbour Energy anticipates the transaction will be accretive to free cash flow per share starting in 2027, supporting shareholder returns and contributing to deleveraging its balance sheet [5] Strategic Positioning - Harbour Energy aims to establish a strong presence in the U.S. Gulf, leveraging LLOG's high-quality deepwater assets and established infrastructure to position itself as a leading player in the region [6] - The supportive fiscal and regulatory environment in the Gulf is expected to facilitate Harbour's growth following the acquisition [6]