Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

## HBR Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

`Free Cash Flow = Operating Cash Flow - Capital Expenditures`

Using above formula to calculate Free Cash Flow for Harbour Energy plc (HBR), the free cash flow value is 970.30M.

All amounts in USD

Operating Cash
1.61B
Capital Expenditure
-643.9M
Free Cash Flow
970.30M

Harbour Energy plc has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

## HBR Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Harbour Energy plc (LSE:HBR).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 101.1M -778.4M 218.85M 368.9M
Depreciation 1.74B 2.03B 917.24M 639.88M
Change To Netincome 376.8M 170.9M 393.31M 369.78M
Change To Account Receivables -607.4M 41.5M -6.09M 32.58M
Change To Liabilities 13.5M -76.3M -4.86M 34.84M
Change To Inventory -13M -11.2M 208k 1.86M
Total Cash From Operating Activities 1.61B 1.37B 1.52B 1.45B
Capital Expenditures -643.9M -598.1M -530.28M -350.16M
Other Cashflows From Investing Activities 21.5M 7.4M 9.45M 8.62M
Total Cashflows From Investing Activities -571M -603.2M -2.78B -581.9M
Net Borrowings -530.7M -751.6M 1.65B -714.6M
Other Cashflows From Financing Activities -253.4M -147.8M -143.91M -132.82M
Total Cash From Financing Activities -787.2M -899.4M 1.51B -847.42M
Effect Of Exchange Rate -2.7M 1.4M 5.9M -1.75M
Change In Cash 253.3M -127.8M 256.87M 16.77M
Repurchase Of Stock -3.1M -3.1M -3.1M -3.1M