Harbour Energy plc (HBR.L,PMOIF,HBRIY) announced Monday that it has entered into an agreement to acquire LLOG Exploration Company LLC, a privately-held operator in the US Gulf of America, from LLOG Holdings LLC for $3.2 billion in cash and stock deal.
Under the terms of a Membership Interest Purchase Agreement or MIPA, the consideration comprises $2.7 billion of cash and $0.5 billion of Harbour's voting ordinary shares. The cash consideration will be funded through an underwritten $1 billion bridge facility, a $1 billion term loan and Harbour's existing sources of liquidity.
Further, Harbour's 174.86 million new voting shares will be issued to LLOG Holdings at an agreed value of $0.5 billion or 215 pence per Harbour share.
The completion of the acquisition would occur in late first quarter of fiscal 2026, subject to customary closing conditions.
On completion of the deal, LLOG Holdings LLC will own 11 percent of Harbour's stake, while Harbour's current shareholders will own 89 percent.
With the acquisition, Harbour will enter into the US Gulf of America, strengthening its global portfolio and establishing a core business unit alongside Norway, the UK, Argentina and Mexico.
Following completion, LLOG will serve as Harbour's new Gulf of America business unit, which will incorporate the LLOG.
The deal is accretive to Harbour's key portfolio metrics. It is accretive to margins and lowers Harbour's effective tax rate, supports overall production at c.500 kboepd to end of the decade, and increases Harbour's oil weighting, OECD presence and operational control. With the acquisition, production is expected to approximately double by 2028.
Linda Cook, CEO Harbour, said, "The transaction positions us as a leading player in a region with well-established infrastructure, a supportive fiscal and regulatory environment and opportunities for additional growth. The oil-weighted, deepwater LLOG portfolio enhances our production profile, provides significant operational control, extends reserve life and improves our margins."
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