Tullow Oil (TLW) Investor presentation summary

Strategic evolution and business model

• Focus on responsible oil and gas production in West Africa, with ongoing development and exploration to sustain and grow output.

• Portfolio includes operated assets in Ghana, non-operated assets in Gabon and Côte d'Ivoire, and discovered resources in Kenya.

• Transitioned from turnaround and investment (2020-2022) to a cash-generative, Pan-African platform with reliable production and deleveraging.

• Emphasizes capital discipline, cost reductions, and infrastructure-led organic growth, with inorganic opportunities considered.

• Seeks to leverage expertise as a trusted partner and responsible operator in Africa's evolving energy landscape.

Financial performance and outlook

• 2024 half-year production increased to 63.1 kboepd, with realized oil price at $77.7/bbl and net debt reduced to $1.7 billion.

• Full-year 2024 guidance reiterates production at the lower end of 62-68 kboepd, capex of ~$230 million, and free cash flow of $200-300 million at $80/bbl.

• Operating costs and G&A have been significantly reduced since 2019, with 2024 capex focused 90% on existing producing assets.

• Hedging policy protects against downside while increasing upside exposure, with legacy hedges rolling off in May 2024.

• No uncovered debt maturities until May 2026; net debt targeted below $1.4 billion by YE24 and below $1.0 billion in the near term.

Operational excellence and asset performance

• Jubilee South East project delivered on budget in July 2023, with high local content and top-tier drilling performance.

• Jubilee field's 2024 production expected at ~90 kbopd, with strong FPSO uptime and ongoing water injection supporting reservoir pressure.

• TEN and non-operated portfolio production above expectations, with ongoing field optimization and new projects supporting output.

• Continued investment in facility upgrades and near-field exploration to sustain production and minimize decline.