Tullow Oil (TLW) H1 2025 earnings summary

Executive summary

• Strategic priorities advanced in 1H25, including asset sales such as Gabon for $300 million and Kenya for at least $120 million, and cost reductions, supporting 2026 value creation.

• Interim CEO and CFO report stable leadership and progress on production optimisation, return to drilling in Ghana, and operational efficiency.

• Ghana Branch Profits Remittance Tax Arbitration resolved favorably; ongoing constructive engagement with Ghanaian authorities.

• MoU signed to extend Ghana production licences to 2040, supporting long-term value, reserves uplift, and right to drill up to 20 additional Jubilee wells.

• Non-core asset sales and deleveraging efforts to support refinancing in 2H25.

Financial highlights

• Group working interest production averaged 50.0 kboepd in 1H25 (1H24: 63.7 kboepd); excluding Gabon, 40.6 kboepd (1H24: 53.5 kboepd).

• Realised oil price after hedging was $69.7/bbl in 1H25 (1H24: $77.0/bbl).

• Free cash flow was $(188) million in 1H25 (1H24: $(126) million); net debt at $1.6 billion at 1H25, projected to fall to $1.1 billion at year-end 2025 with asset sale proceeds.

• Capital expenditure reduced to $103 million in 1H25 from $157 million in 1H24; full-year capex guidance at ~$185 million.

• Gross debt reduced by $0.3 billion, saving $8 million in annual interest.

Outlook and guidance

• FY25 production guidance (excl. Gabon): 40–45 kboepd; incl. Gabon: 50–55 kboepd.

• FY25 capital expenditure guidance: $185 million (excl. Gabon), $235 million (incl. Gabon); decommissioning guidance for 2025 at ~$20 million.

• Free cash flow guidance adjusted to $300 million at $65/bbl, including $380 million disposal proceeds.

• Net debt projected to fall to $1.1 billion at year-end 2025 with Gabon sale completion; focus remains on deleveraging and achieving net debt below $1 billion and gearing below 1x.

• Refinancing of capital structure targeted before year-end; senior notes mature May 2026.