Tullow Oil Reaffirms 2023 Production, Capital Expenditure, and Free Cash Flow Guidance

Tullow Oil has restated its production, capital expenditure, and free cash flow guidance for 2023. The oil-and-gas company reported an average production of approximately 53,000 barrels of oil-equivalent per day in the first half of the year, and it maintains its full-year guidance within the range of 58,000-64,000 barrels per day.

During this period, Tullow Oil generated around $800 million in revenue, which aligns with the figures from the first half of 2022. The company achieved this with an average realized oil price of approximately $81 per barrel before hedging.

However, the company experienced negative free cash flow of around $100 million, compared to break-even in the prior year. Nevertheless, Tullow Oil states that this performance was within expectations. The full-year guidance for free cash flow remains steady at around $100 million, assuming an $80-per-barrel oil price.

In terms of capital expenditure, Tullow Oil invested around $200 million in the first half of the year. The company maintains its full-year guidance at approximately $400 million.

Tullow Oil has also announced that the Jubilee South East project, located offshore Ghana, is set to come online very soon. The Chief Executive Officer, Rahul Dhir, anticipates gross production from the field to surpass 100,000 barrels of oil per day. This substantial increase in cash flow generation will contribute significantly to reducing the company’s leverage.