Here is a summary of the key points from the trading statement and operational update from Tullow Oil plc
Sustainable free cash flow has helped Tullow Oil plc (Tullow) significantly reduce its net debt over the last four years, from approximately $2.81 billion to $1.45 billion.
The companys CEO, Rahul Dhir, highlighted their commitment to operational excellence and efficient implementation of cost-saving measures, which have contributed to their financial improvements.
In 2024, Tullows full-year working interest production averaged around 61.2 kboepd, including 6.6 kboepd of gas.
Revenue for the year was approximately $1.5 billion, with an average realized oil price (pre-hedging) of $80.2/bbl.
Capital expenditure and decommissioning costs were in line with guidance, at approximately $230 million and $60 million, respectively.
The company successfully resolved the Ghana Branch Profits Remittance Tax arbitration, removing a $320 million contingent liability.
Looking <mark style="background-coloryellow">ahead</mark> to 2025, Tullow expects group working interest production to average between 50 to 55 kboepd, including gas production and a planned maintenance shutdown on the Jubilee field.
The company plans to resume its Ghana drilling program in May 2025, with two Jubilee wells expected to come online in the third quarter.
Tullow is considering disposing of certain non-core assets to accelerate deleveraging and achieve its target of net debt below $1 billion and gearing of less than one time.
The company forecasts free cash flow of around $200 million at an oil price of $80/bbl and plans to simplify its capital structure and set a framework for capital returns and growth through inorganic opportunities.