Harbour Energy Completes Wintershall Dea Asset Portfolio Acquisition from BASF

Harbour Energy has completed the acquisition of Wintershall Dea AG's upstream asset portfolio, marking a significant milestone in the company’s growth. The acquisition, finalized on September 3, 2024, with an effective date of June 30, 2023, positions Harbour Energy as one of the largest and most geographically diverse independent oil and gas companies globally. The company now produces approximately 475,000 barrels of oil equivalent (boe) per day, with substantial operations across Norway, the UK, Argentina, North Africa, and Germany.

The acquisition enhances Harbour’s competitive edge with a 2P reserve base of approximately 1.5 billion boe, ensuring substantial and sustainable free cash flow. Additionally, the company’s 2C resource base of around 1.8 billion boe offers a broad array of growth opportunities, including near-infrastructure projects in Norway, scalable unconventional opportunities in Argentina, and conventional offshore projects in Mexico and Indonesia.

Harbour Energy's commitment to environmental responsibility remains strong, with a low emissions intensity of less than 15 kgCO2e/boe and targets to reduce greenhouse gas emissions and eliminate non-routine flaring. The company is also involved in several carbon capture and storage (CCS) projects under development, reinforcing its pledge to produce oil and gas safely and responsibly.

The acquisition was financed through a combination of equity issuance valued at $4.15 billion, the transfer of approximately $4.9 billion in euro-denominated Wintershall Dea bonds, and a cash consideration of $2.15 billion. A portion of the cash consideration was satisfied through agreed adjustments under the Business Combination Agreement, with the remaining balance funded from Harbour’s $1.5 billion bridge facility and existing cash reserves. As a result, Harbour’s estimated net debt post-acquisition stands at approximately $4.5 billion.

With this significant transaction, Harbour Energy anticipates an improvement in its credit quality, expecting to achieve an Investment Grade rating in due course. The company has updated its 2024 guidance to reflect the acquisition's impact, projecting production levels of 250-265 kboepd and proforma production of 470-485 kboepd. Capital expenditure is expected to reach approximately $1.7 billion, with proforma figures at around $2.7 billion.

Linda Z. Cook, CEO of Harbour Energy, expressed pride in completing the transformative acquisition, noting it as a critical step forward in building a global independent oil and gas company. She thanked all involved parties and welcomed new colleagues from Wintershall Dea, emphasizing the continued potential of Harbour Energy for all stakeholders.

Wintershall Dea was established in 2019 through the merger of Wintershall Holding GmbH and DEA Deutsche Erdoel AG. In December 2023, its shareholders, BASF and LetterOne, agreed to sell Wintershall Dea's exploration and production (E&P) business and carbon storage licenses to Harbour Energy.