Harbour Energy: Second Chance

2026-07-02 06:28:12 ET

The last article I wrote on Harbour Energy plc (PMOIF) (HBRIY) noted that the company completed a major acquisition just in time for higher commodity prices. Commodity prices rose due to the Iranian situation and are now declining on the news of a cessation of hostilities. But I do not believe that the reasons behind the hostilities will be that easily resolved. Oil is flowing through the Strait of Hormuz. But Iran has also begun mining the Strait of Hormuz. Supposedly, this is the 40th attempt to resolve our differences (including the nuclear weapons issue), and it has gone on for years. To me, that means that the whole situation is going to be a challenge to resolve. A simple example is that we are negotiating to get the Strait of Hormuz open the way it was before the crisis began. Additionally, it will take a while to repair damaged infrastructure to get production capabilities back to where they were. Those would be the main reasons that I believe we will have higher commodity prices for longer. If that is the case, then the recent decline of the common stock price of Harbour Energy offers a second chance to participate in the benefits of the company's acquisition strategy....

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