Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Bloomberg, 05 January 2024
Oil Set for Weekly Gain With Global Supply Risks Mounting
Red Sea, Iran and Lebanon have all seen attacks this week
Benchmark Brent futures climb on Friday, adding to weekly gain
Oil rose, cementing a weekly advance, aided by supply risks in the Middle East and Libya.
Brent crude climbed to trade near $78 a barrel as tensions in the Middle East and North Africa ratcheted higher this week. US Secretary of State Antony Blinken heading to the region for the fourth time since the Hamas attack on Israel in early October.
https://www.bloomberg.com/news/articles/2024-01-05/latest-oil-market-news-and-analysis-for-jan-5?leadSource=uverify%20wall
Great Divi, huge Capital gains potential, solid proactive management, fantastic PMO and now richly diversified/outstanding Wintershall Dea assets all in the works, what’s not to like here, sometimes markets offer very unique opportunities and HBR today is now one such case I believe.
While Brent is flying, analysts say on Bloomberg that there is currently a ~$15 gap that needs to be filled for geopolitical tensions that are yet to be priced into Brent.
No comment but interesting to note the below and subsequently do your own maths here/calculate potential, and make of it what you will:
“The acquisition of Wintershall Dea's assets will dramatically increase Harbour's scale and diversification. In 2024, the combined production is expected to be around 500,000 barrels of oil equivalent per day (kboe/d, around 60% of which will be natural gas), and management expects a fairly stable production profile in the next four years. Production will primarily be focused on Norway and the UK and, to a lesser extent, Argentina, Germany and Africa. The combined production would be broadly in line with that of US-focused Diamondback Energy, Inc. and Norway-focused Aker BP ASA (both rated 'BBB'/Stable).”
Market capitalization of Aker BP (AKRBP.OL)
Market cap: $17.89 Billion
As of January 2024 Aker BP has a market cap of $17.89 Billion. This makes Aker BP the world's 985th most valuable company by market cap according to our data. The market capitalization, commonly called market cap, is the total market value of a publicly traded company's outstanding shares and is commonly used to measure how much a company is worth.
https://companiesmarketcap.com/aker-bp/marketcap/#google_vignette
Hopefully we’ll get some positive updates here on progress with HBR along with the very lucrative Old PMO assets sometime during this quarter, after all in old PMO money this is still only around ~15p ish!
“HBR is currently a Sleeping Giant/Multibagger in the waiting with huge forward potential here both withing it's present/rich PMO inherited portfolio and now that of Wintershall Dea gained assets.”
I agree, Harbour Energy is now a completely different kettle of fish, and funny enough, it was already significantly undervalued even before the Wintershall Dea deal of the century!
“Harbour has demonstrated a record of acquiring assets and successfully integrating them, most recently through its reverse merger with Premier Oil, which increased its production by around 50% and made Harbour a listed company. Following acquisitions, Harbour focus has been on debt reduction, and pre-transaction net financial debt is minimal. We expect Harbour's financial policy to remain prudent.”
Additionally and interestingly as noted by Fitch here, Harbour itself also has substantial pro-forma 2C resource base (1.6 billion boe) and a number of near-term potential development projects in place.
CMC MARKETS:
https://www.cmcmarkets.com/en-gb/news-and-analysis/what-next-for-uk-oil-and-gas-after-a-year-of-lower-profits_amp
“The economics of renewables appears to be something that eludes the imagination of a lot of people, not only in politics, but also in the general population. Until that changes, it will be extremely difficult if not impossible to be able to implement the sort of changes required in the timeframe that is required. Even the more established players in the renewables sector are struggling to turn a profit when it comes to wind and solar power.
Denmark’s Orsted for example is one of the world’s biggest providers of renewable energy of offshore wind, with an excess of 13.7GW of installed capacity, with 6.2GW of that installed in the UK. This total is expected to increase to 50GW by 2030, by a combination of wind, solar and renewable hydrogen, which last year was estimated to cost in the region $54bn. Since then, the prices of key commodities have soared, along with demand. This inconvenient fact continues to be overlooked by climate activists as they continue to peddle the fiction that renewable power is cheaper.
The reality is that oil and gas is likely to be around for some time to come in the absence of a reliable base load alternative which can compensate for 'dunkelflaute' periods of low light and no wind, which occurs on average between 50-100 hours a month between November and January.”
As now the largest Independent O&G company in the world, HBR is soon going to be a truly Major Global O&G player trading within the FTSE 100, it is also now undoubtedly one of the most undervalued and oversold shares trading in all the FTSE, it certainly won’t stay at these levels from 2024.
There’ll be series of analysts upgrades here come the New Year, and it won’t only be Carlos Slim piling in this eventually FTSE 100 company.
Post from ADVFN today:
TheComposer28 Dec '23 - 08:17 - 4415 of 4415
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Today, HBR clearly has the potential to be the most rewarding FTSE share of 2024, especially post this “Deal of the Century” here and from it’s current significantly suppressed market capitalization, HBR is a sleeping giant and a Multibagger in the waiting, DYOR.
HBR - Multibagger potential here much more likely IMO.
https://www.energyvoice.com/oilandgas/north-sea/544333/harbour-energy-wintershall-dea-deal-challenger-aker-bp/
Obviously US rig count is rapidly falling and hence by default now so will production, all with US SPR at historical lows, very well done to Linda & Team on achieving “The Deal of The Century”, “well beyond all expectations”, as highlighted by analysts.
Buffett’s Berkshire Hathaway Raises Occidental Stake To 27.7%
Berkshire Hathaway purchased an additional 5.2 million shares of Occidental Petroleum, spending around $312 million.
The purchase follows Occidental's announcement of acquiring Permian oil driller CrownRock in a deal valued at around $12 billion.
Warren Buffett, CEO of Berkshire Hathaway, has expressed confidence in Occidental's position in the Permian Basin but denied plans of taking full control of the company.
Berkshire Hathaway bought this week further 5.2 million shares in Occidental Petroleum, which raises its stake in the U.S. oil producer to around 27.7%, Warren Buffett’s conglomerate said in a regulatory filing with the SEC.
Between December 19 and December 21, Berkshire Hathaway bought Oxy shares at a price of around $60 per share for a total spending of about $312 million this week, the filing showed.
As of December 21, Berkshire Hathaway held a total of 243,715,804 of common stock in Oxy plus 84,897 in Series A Preferred Stock.
Last week, Buffett’s firm bought close to $590 million worth of Occidental Petroleum stock after the U.S. oil firm announced it would acquire Permian oil driller CrownRock.
Early last week, Occidental Petroleum said it buy Permian oil and gas producer CrownRock for cash and stock in a deal valued at around $12 billion, including debt.
Occidental has entered into a purchase agreement to buy CrownRock, whose over 94,000 net acres of premium stacked pay assets and supporting infrastructure “are well positioned alongside Occidental’s legacy Midland Basin business,” Oxy said on December 11, announcing the latest large acquisition in the U.S. oil industry.
Berkshire Hathaway began buying stock in Occidental last year, sparking speculation that it was going to take over the company, which it helped acquire rival Anadarko in 2019.
Buffett denied he had such plans at Berkshire’s annual shareholders’ meeting earlier this year.
https://oilprice.com/Energy/Energy-General/Buffetts-Berkshire-Hathaway-Raises-Occidental-Stake-To-277.html
Great note by Proactive Investors, here’s another article on similar lines by Energy Voice:
https://www.energyvoice.com/oilandgas/north-sea/544333/harbour-energy-wintershall-dea-deal-challenger-aker-bp/
Now simply add to this “Deal of the Century” just announced, fact that Mexico’s richest man so far buying +5% of HBR along with a big chunk of Zama field via Talos Mexico, all while we await further internal updates from Indonesia, Mexico, Norway,……assets as the Mubadala gas find/news was a big one for SE Asia, and this is not even considering expiring hedges, timely Vietnam asset sale incoming cash, and potential for higher O&G prices while HBR also still utilizing UK production along with any/all tax incentives in play.
Nice read and very informative FT article today, thank you for sharing here, HBR is now one of the big boys of O&G sector and as the penny drops the market capitalization will move upward towards much more deserving levels.
This should/will be over ÂŁ5 in no time, wait for the markets (including US investors) to fully digest all the implications (and size) here post the holidays, multibagger indeed from current massively suppressed valuations.
Give markets time to properly digest this game changing news here over the holidays and HBR may even triple its valuation from here, particularly with improved hedging and likely higher O&G prices.
This is just so much better than a Talos deal, Linda and team are very very shrews operators, and patient.