Harbour Energy Acquires LLOG Exploration

22 Dec Harbour Energy Acquires LLOG Exploration

(Oilandgaspress) Harbour announces that it has entered into an agreement to acquire LLOG Exploration Company LLC (“LLOG”) from LLOG Holdings LLC for $3.2 billion (the “Acquisition”), comprising $2.7 billion of cash and $0.5 billion of Harbour’s voting ordinary shares. The Acquisition marks Harbour’s strategic entry into the US Gulf of America, strengthening its global portfolio and establishing another core business unit alongside Norway, the UK, Argentina and Mexico.

Consideration structure and financing
Under the terms of a Membership Interest Purchase Agreement (the “MIPA”), Harbour will acquire LLOG for $3.2 billion, comprising:

$2.7 billion of cash consideration to be funded through an underwritten $1 billion bridge facility, a $1 billion term loan and Harbour’s existing sources of liquidity

174,855,744 new Harbour voting ordinary shares issued to LLOG Holdings LLC (the “Consideration Shares”) at an agreed value of $0.5 billion or 215 pence per Harbour share

On completion, LLOG Holdings LLC will own 11 percent of Harbour’s listed voting ordinary shares with Harbour’s current shareholders owning 89 percent (such percentages subject to adjustment resulting from Harbour’s current share buyback programme which is expected to complete in the first quarter of 2026). Of the voting ordinary shares issued to LLOG, 70% will be subject to a one-year lock-up following completion of the Acquisition.

The Acquisition provides a unique opportunity to acquire one of the most successful, privately-held operators in the US Gulf of America and is a strong strategic fit for the Company.

Entry into the deepwater US Gulf of America
High-quality, long-life, oil-weighted assets
Accretive to Harbour’s key portfolio metrics
Upside potential underpinned by significant drilling and lease inventory
Strengthens long term financial position

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