Two UK oil and gas companies, Harbour Energy and Serica Energy, are trading at historically low price-to-earnings ratios, making them attractive to investors seeking a bargain in the sector. Harbour Energy, the largest London-listed independent oil and gas company, has a global presence with assets in the UK, Norway, Germany, North Africa, and the Americas. The company has production levels of 506,000 barrels of oil equivalent per day (boepd) in the first quarter, thanks to higher output from recently acquired US LLOG assets in the Gulf of Mexico.
Serica Energy, on the other hand, has a predominantly UK-based production profile and is listed on the Aim market, which explains its bargain-basement valuation. However, the company is moving to the main market in the third quarter of 2026, which is expected to remove some of the uncertainty surrounding its valuation. According to analysts, Serica Energy will yield 7% for 2026 and 2027.
Despite the challenges faced by both companies, analysts predict Harbour Energy will return £1.9 billion to shareholders in 2026, with a free cash flow yield of 35% and a dividend yield of 9.9%. Serica Energy, on the other hand, is expected to yield 7% for 2026 and 2027 at the current share price. The companies' low valuations make them an attractive option for investors seeking a bargain in the UK oil and gas sector.