Harbour Energy share price has performed relatively well in the past few weeks as investors react to the company’s strong performance. HBR stock soared to a high of 497p, which was the highest level since May 9. It has jumped by 67% from the lowest level in July, making it one of the best-performing FTSE 250 stock.
Why is HBR stock soaring?
Harbour Energy is a leading independent oil and gas company with operations in the UK, Norway, Indonesia, Vietnam, and Mexico. The company has over 1,700 employees in these countries. The company’s stock has jumped recently as investors reflect on the company’s strong earnings and the elevated oil and gas prices.
Harbour Energy produced 211 kboepd in the first half of the year, which was a 40% increase from the same period in 2021. Its unit cost of production was $14.2/boe, which was about 5% lower. As a result, its profit after tax jumped to $984 million. This increase was partly because of a $360 million that was attributed to foreign exchange.
The company’s capex was $391 million while its free cash flow rose to $1.4 billion. The company also managed to reduce its debt to $1.1 billion. As a result, it decided to deliver its first dividend of $98 million.
Harbour Energy share price has also risen due to the recent victory by Lizz Truss, who has opposed a windfall tax. The company has been a vocal opponent of such a tax, saying that it was increasing its investments in the UK by over 30%.
Harbour Energy share price forecast
The daily chart shows that the HBR stock price has been in a strong bullish trend in the past few weeks. In this period, it managed to move above the important resistance level at 434p, which was the highest level on December 7. In this period, the stock has moved above the 25-day and 50-day moving averages while the Awesome Oscillator has moved above the neutral point.
Therefore, the stock will likely continue soaring as buyers target the next key resistance level at 537p. A drop below the support at 465p will invalidate the bullish view.