HBR Business plan Needs Proper representation for fair & balanced view18 Feb 2023 16:53
HBR owes its existence to M&A and every negative post evades this massive opportunity in the risk balance mix. -
HBR Business plan– discuss creatively and positive and negative assets of any business to get a balanced view.
The primary purpose of a business plan is to establish your plans for the future. These plans should include goals or milestones alongside detailed steps of how your company will reach each step. The process of creating a roadmap to your goals will help you determine your business focus and pursue growth. HBR have set out their business plan
1. Harbour was created through material M&A – Investor Presentation Slide 5
Acquired shell 2017, then Conoco 2019 and PMO merger 2021 – every 2 years and has a clear track record of repaying acquisition debt despite huge vagaries within the O&G prices over the last 7 years. FACT – which skews strongly to the desire and aptitude to repeat the process – in an immediate time frame. Proven track record = available funding to hand
2. Investor presentation Feb 23 – slide 11 Ambition to diversify and grow Internationally via M&A
The slide has a flat line for UK NS growth and the main focus of growth being International – specifically mentioning accretive M&A. Quote TU 19th Jan 23
As a result, the EPL necessitated a review of our future activity levels in the UK and reinforced our ambition to grow and diversify internationally. As we look to 2023, we enter the year in a strong financial position and with plans to advance a number of exciting opportunities. As always, we will remain disciplined and very focused on optimizing the allocation of our capital between the balance sheet, investment in growth and shareholder returns.”
Quote Shell JAN 23
Shell Nearly Sold Its Norwegian Oil And Gas Assets In Late 2022
hell held talks last year with the biggest UK North Sea producer Harbour Energy to sell its oil and gas fields offshore Norway and some mature assets offshore the UK, but a deal ultimately couldn’t be reached due to price volatility, company sources told Reuters on Tuesday. Shell, as well as other majors, have worked in recent years on streamlining asset portfolios to focus on the most profitable projects. Back in 2021, Shell said that its oil production peaked in 2019 and is set for a continual decline over the next three decades as it looks toward the renewables side of the business. Shell said its carbon dioxide emissions also likely peaked—a year earlier, in 2018.
The UK-based supermajor and Harbour Energy were in the advanced stages of talks for the sale at the end of 2022, according to Reuters’ sources.
Since Q4 2021 the value of O&G deals in the market has increased by 17% to c. $160 billion
3. Disciplined approach to M&A with focus on strategic fit and value creation – Slide 12
Improved recovery, added reserves & extended field life via investment Prudent risk management:
hedge to lock in returns and rapid deleveraging Added >150 mmboe of 2P reserves to the asse
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