RE: Tullow required to sell themselves?....4 May 2026 16:22
I make it
Jan - May 26
Snr $10,976,043/month
Jnr $4,553,333/Month
Jun -Dec 26
Snr $15,125,000/Month
Jnr $5,852,900/Month
Cargo $680,000/ Month
Total costs 2026 $229,252,175
However that assumes nothing is going to be paid back and that the Cargo facility will be used when Tullow has surplus cash. I think we have to wait 60 days for payment so by July we will not need the cargo facility that saves $4m. Further I suspect by December 2026 Tullow will either use the surplus money for one of three things
1. Clearing $200m + of debt (which will reduce the debt carrying cost by a further $32,820,000 pa)
2. Buy back of the assets disposed of but still available
3. Accelerating the drilling campaign on TEN.
I suspect it will be 1. The forced sale strategy was based on $65 oil. In that scenario the cashflow from the company barely covered interest on debt. In effect it was a repayment scheme for the bond holders that took all of the foreseeable money. At current oil prices the power moves back to the equity holders. If the debt can be reduced by $400m the balance can comfortably refinanced against the revalued oil fields.