Cash Flow Outlook Raised
Tullow Oil Raises Cash-Flow Outlook And Posts Strong Production Gains In Ghana
Anonymous
Tullow Oil’s first-half 2026 production averaged 43,700 barrels of oil equivalent per day, supported by strong uptime and better-than-expected performance at its Ghanaian Jubilee and TEN fields. Revenue rose to about $496 million as the realized oil price before hedging increased to $95 per barrel, while free cash flow swung to a positive $4 million from an outflow of $188 million a year earlier. The company still recorded a roughly $101 million net loss, with tax charges and one-off refinancing costs weighing on results. Tullow expects full-year production at the top end of its guidance and raised its free-cash-flow forecast to $170 million-$250 million. Proven and probable reserves increased to 121.7 million barrels of oil equivalent, and Ghana licence extensions through 2040 support plans for a 2027-28 drilling campaign and further investment in the fields. Net debt stood at $1.4 billion, while recovered gas receivables from Ghana improved liquidity.
Key Points
1
Hedging reduced revenue by $47 million, despite the rise in the realised oil price to $95 per barrel.
2
Tullow recorded a $27 million pre-tax profit, but a $127 million tax charge resulted in a $101 million loss after tax.
3
The first-half free-cash-flow result came after $64 million of interest payments and $70 million of one-off costs related to the refinancing completed in April.
4
Tullow signed a rig contract for up to 10 wells for its Ghana drilling campaign planned for 2027–28.
5
The company said it will not pay an interim dividend.
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