Tullow Oil back in the black in H1, boosts free cash flow and cuts debt Wed, 15th Sep 2021 08:14 (Sharecast News) - Tullow Oil moved back into the black, boosted its free cash flow and significantly cut debt during the front half of its financial year. Key to all of the above, the oil explorer refinanced its liabilities during the period, successfully issued $1.8bn of medium-term debt and clinched a new $500m revolving credit facility.
Group working interest production averaged 61,230 barrels per day, in line with expectations, for roughly steady sales over the six months to June of $727m.
Tullow also pocketed $133m from the sale of its permits in Equatorial Guinea and for Dussagy Marin.
Combined, the company managed to turn a profit after tax of $93m as opposed to the $1.33bn of red ink seen one year before.
In parallel, Tullow also turned free cash flow positive to the tune of $86m, against an outflow of $213m in the year earlier period.
The debt pile meanwhile reduced from $3.02bn to $2.3bn.
Net debt was cut to 2.6 times the company's earnings before interest, taxes, depreciation and amortisation from 3.0 times one year before.
Looking ahead, Tullow narrowed its full-year production guidance to 58,000-61,000 b/d, helped by the decision to defer the shutdown of its Jubilee field and higher production at Simba.
Capital investment and decomissioning spend was pegged at approximately $260m and $90m, respectively.
At $60 a barrel of oil for the remainder of the year, the company projected a full-year underlying operating cashflow of roughly $600m.
Free cash flow for the 12 months meanwhile was seen at about $100m, rising by $50m should the oil price average $70 a barrel over the second half.
That guidance also incorporated expectations that a $75m payment from Total would be triggered if a Final Investment Decision for the Lake Albert development in Uganda occurred before the end of 2021.
If not, then Tullow anticipated a $75m payment in 2022.
not sure why anyone who is invested in oilers or gas companies is worried about the direction of share prices in those fields. The energy crisis that is galloping across the horizon towards us will pave the way for record prices. hold tight and enjoy the ride but if you have a tariff for domestic fuel it might be worth getting a new 10 year fixed rate if you can!
If that's your idea of 'fun' then please can everybody remind me not to invite Jeffrey to any social gathering. It would be like inviting a covid patient to a Christmas lunch at a nursing home! no fun at all.
amazes me that people panic sell before an update is coming when all the data suggests a strong recovery in what was a lame duck! This company is back to 'growth' status with irons in fire than many competitors would be envious of. It's still a bargain at these levels for a short term gain AND a medium term investment. If you need to sell then do so but I suggest waiting as long as you can to avoid that dreaded feeling of 'could've should've' regret.
I think I can speak for all the LTHs here and say we are all fine thanks, good of you to ask.
However, if you're not invested either way why come in here? Your name is mud and I guess always will be so nothing you say will sit well. Your charm offensive cuts no ice so before you start to get the normal and regular abuse why not trot back off whence you came and keep watching the BP sp for the moves you hoped for months ago?
indeed it is Big R but......results out next week. I cannot believe that Tullow isn't worth more than this sp indicates based on all the hard work and turnaround in company accounts profit/loss we have seen so far. It might take longer than we all hoped but she looks good going forward. my guess is we will see a run up in sp to results day or a breakout when results are released. keep holding them shares for now pal.