Tullow Oil (TLW) H1 2026 earnings summary

Executive summary

• Production performance in H1 2026 was outstanding, with output at the top end of guidance and a 7% year-over-year increase, driven by new wells, optimized operations, and high facility uptime.

• Achieved significant operational, financial, and strategic progress, with Jubilee and TEN fields outperforming expectations and supporting reserves growth.

• Completed comprehensive refinancing in April 2026, improving liquidity, extending debt maturities, and reducing cash interest.

• Material 2P reserves were added, achieving a 380% reserve replacement ratio, with further growth potential from future drilling and infrastructure-led exploration.

• Operational focus and project delivery mindset led to high well stability, reduced downtime, and enhanced reservoir management, particularly in Ghana.

Financial highlights

• H1 2026 production averaged 43,700 boe/d, up over 7% year-over-year, with realized oil prices averaging $95/bbl pre-hedge and $86/bbl post-hedge; peak cargo at $130/bbl.

• Revenue rose to $496 million (1H25: $411 million), with gross profit at $276 million and free cash flow for H1 at $4 million, impacted by one-off refinancing costs.

• Operating cash flow reached $222 million in H1, with expectations for higher cash flow in H2 due to more cargoes.

• Net debt at 30 June 2026 was $1.4 billion (30 June 2025: $1.6 billion), with a year-end target of $1.2 billion.

• Capital expenditure guidance remains at $200 million for the year, with decommissioning spend reduced to $15 million.

Outlook and guidance

• Confident in achieving the high end of full-year production guidance (34,000–42,000 boe/d), with 14 cargoes expected to be lifted in 2026.

• Free cash flow guidance upgraded to $170–$250 million at $70–$100/bbl oil, with potential for further upside if oil prices remain strong.

• Future drilling campaigns, reservoir management, and infrastructure-led exploration are expected to add further reserves and value.

• Capex guidance maintained at ~$200 million; decommissioning guidance reduced to ~$15 million.

• Stable Ghanaian investment climate and improving long-term project economics.