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Harbour Energy Expands North Sea Footprint With $170M Acquisition
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Key Takeaways
HBRIY agreed to buy most Waldorf subsidiaries for $170M, with deal completion expected in Q2 2026.
HBRIY will raise Catcher field stake to 90% and add a 29.5% non-operating interest in the Kraken oil field.
HBRIY expects 20,000 boe/day output growth, 35M barrels of 2P reserves, and added tax benefits.
On Dec.12, 2025, Harbour Energy (HBRIY - Free Report) struck a $170 million deal to strengthen its UK North Sea portfolio by acquiring all subsidiaries of Waldorf Energy Partners Ltd. and Waldorf Production Ltd. Following announcement HBRIY's share price fell 1.4% to $2.8 from $2.84 per share, likely due to the weakening global crude oil price. West Texas Intermediate crude is currently hovering just below $56 per barrel.
Harbour Energy stated that the transaction will be funded internally through its existing liquidity. HBRIY expects the deal to be completed in the second quarter of 2026, subject to creditor settlements and regulatory approvals.
Following the closure of the deal, HBRIY will increase its stake in the Catcher field to 90% from 50% and gain a 29.5% non-operating interest in the Kraken oil field.
The deal is expected to enhance Harbour's daily oil equivalent production by 20,000 barrels and add around 35 million barrels of oil equivalent of 2P reserves to its portfolio. HBRIY expects higher production levels to generate additional cash flow in the coming years, thereby adding stability to its business model.
HBRIY states that, through this synergy, it will also receive around $350 million in cash that Waldorf had kept as security for decommissioning. The cash can be utilized for investment and other purposes as Harbour has a strong balance sheet.
However, Harbour Energy's business model remains highly vulnerable to crude oil price volatility. The company currently carries a Zacks Rank #4 (Sell), and with West Texas Intermediate crude oil prices trading below $56 per barrel, its business is likely to face pressure in the near term.
Other key players in the upstream space are EOG Resources, Inc. (EOG - Free Report) , ConocoPhillips (COP - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . While the business models of EOG, COP and FANG are also affected by declining crude oil prices, they are relatively better positioned and currently carry a Zacks Rank #3 (Hold) each.
EOG Resources, headquartered in Houston, TX, strives to be a leader in operational efficiency with a focus on delivering strong financial returns.
ConocoPhillips, headquartered in Houston, TX, has raised its 2025 daily production guidance to around 2.375 million barrels, as reported in its third-quarter 2025 update, 15,000 barrels higher than its previous 2025 guidance.
Diamondback Energy, headquartered in Midland, TX, allocates capital in a disciplined manner with outstanding returns.
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Harbour Energy Expands North Sea Footprint With $170M Acquisition
Key Takeaways
On Dec.12, 2025, Harbour Energy (HBRIY - Free Report) struck a $170 million deal to strengthen its UK North Sea portfolio by acquiring all subsidiaries of Waldorf Energy Partners Ltd. and Waldorf Production Ltd. Following announcement HBRIY's share price fell 1.4% to $2.8 from $2.84 per share, likely due to the weakening global crude oil price. West Texas Intermediate crude is currently hovering just below $56 per barrel.
Harbour Energy stated that the transaction will be funded internally through its existing liquidity. HBRIY expects the deal to be completed in the second quarter of 2026, subject to creditor settlements and regulatory approvals.
Following the closure of the deal, HBRIY will increase its stake in the Catcher field to 90% from 50% and gain a 29.5% non-operating interest in the Kraken oil field.
The deal is expected to enhance Harbour's daily oil equivalent production by 20,000 barrels and add around 35 million barrels of oil equivalent of 2P reserves to its portfolio. HBRIY expects higher production levels to generate additional cash flow in the coming years, thereby adding stability to its business model.
HBRIY states that, through this synergy, it will also receive around $350 million in cash that Waldorf had kept as security for decommissioning. The cash can be utilized for investment and other purposes as Harbour has a strong balance sheet.
However, Harbour Energy's business model remains highly vulnerable to crude oil price volatility. The company currently carries a Zacks Rank #4 (Sell), and with West Texas Intermediate crude oil prices trading below $56 per barrel, its business is likely to face pressure in the near term.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other key players in the upstream space are EOG Resources, Inc. (EOG - Free Report) , ConocoPhillips (COP - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . While the business models of EOG, COP and FANG are also affected by declining crude oil prices, they are relatively better positioned and currently carry a Zacks Rank #3 (Hold) each.
EOG Resources, headquartered in Houston, TX, strives to be a leader in operational efficiency with a focus on delivering strong financial returns.
ConocoPhillips, headquartered in Houston, TX, has raised its 2025 daily production guidance to around 2.375 million barrels, as reported in its third-quarter 2025 update, 15,000 barrels higher than its previous 2025 guidance.
Diamondback Energy, headquartered in Midland, TX, allocates capital in a disciplined manner with outstanding returns.