Booming commodity prices mean Harbour Energy is throwing off cash and yet the biggest oil and gas producer in the UK North Sea is still struggling to gain credibility in the eyes of investors.
London-listed oil and gas producers are cheap, valuations that reflect expectations that the bumper cashflows generated by booming commodity prices won’t last, as well as an aversion to carbon-intensive industries by institutional investors with increasing ESG mandates. However, even by the sector’s standards Harbour Energy is in the bargain basement.
An enterprise value of 1.5 times forecast earnings before tax and other charges is a discount to energy majors like BP and Shell but also mid-cap producers like Energean and Tullow Oil. That fails to reflect the real prospect of generous
