Private Equity | Deals - Acquisition, Mergers, Divestitures | Capital Markets

Harbour Energy Enters U.S. Deepwater With $3.2B LLOG Acquisition

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   |    Monday,December 22,2025

Harbour Energy has agreed to acquire LLOG Exploration Company LLC for $3.2 billion, marking Harbour’s strategic entry into the deepwater U.S. Gulf of America and establishing what it calls a new core business unit alongside Norway, the UK, Argentina and Mexico.

Under the agreement, Harbour will acquire LLOG from LLOG Holdings LLC for $2.7 billion in cash plus $0.5 billion in Harbour voting ordinary shares. Harbour said the acquisition adds a long-life, oil-weighted deepwater portfolio with significant operational control and meaningful upside from both development and exploration, while supporting a stronger free cash flow profile and investment-grade balance sheet.

LLOG brings a portfolio anchored by operated deepwater fields including Who Dat (Mississippi Canyon) and Buckskin and Leon-Castile (Keathley Canyon), with production of ~34 kboepd, operating costs of ~$12/boe, and a ~23% blended federal and state tax rate. Harbour said the LLOG assets carry a 22-year 2P reserves life and are expected to drive production that approximately doubles by 2028, supported by a leading position in the prolific Lower Tertiary Wilcox play.

Harbour estimates the transaction will add 271 mmboe of 2P reserves, increasing Harbour’s 2P reserves by 22% and extending reserves life from 7 years to 8 years. The company also expects the deal to increase operational control over its 2P reserves from 39% to 50%, improve margins, and reduce its effective tax rate. Harbour said the deal will be free cash flow per share accretive from 2027, and signaled a shift to a payout-ratio-based distributions policy beginning in 2026, incorporating both a base dividend and share buybacks.

The acquired business will become Harbour’s new Gulf of America business unit, and Harbour plans to incorporate the LLOG name to preserve and leverage its established reputation. LLOG’s CEO Philip LeJeune and leadership team are expected to remain with the business following completion, providing continuity and deep basin expertise.

Harbour expects to finance the cash portion through an underwritten $1 billion bridge facility, a $1 billion term loan, and existing liquidity. The agreement includes a $100 million cash deposit to escrow, credited against the cash consideration at closing. Closing is expected in late Q1 2026, subject to customary conditions, including HSR clearance.

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