Tullow Oil (TLW) Trading Update summary

Operational performance and achievements

• 2024 working interest production averaged 61.2 kboepd, with strong FPSO uptime of 97% at Jubilee and TEN.

• Five new Jubilee wells brought onstream, ending the drill program six months early and with no safety incidents.

• Decommissioning in Mauritania completed ahead of schedule and under budget.

• Water injection capacity at Jubilee increased to 300 kbwpd, expected to lower decline rates in 2025.

• Ghana drilling resumes May 2025, with two new Jubilee wells expected online in Q3 2025.

Financial highlights and outlook

• 2024 revenue reached $1.5 billion, with free cash flow of $156 million and net debt reduced to $1.45 billion.

• 2025 capital expenditure planned at $250 million, with 60% allocated to Jubilee.

• Forecast 2025 free cash flow of $200 million at $80/bbl, including $50 million overdue gas receipts.

• Hedge portfolio protects 60% of forecast sales at $59/bbl, with 40% capped at $89/bbl.

• Considering non-core asset disposals to accelerate deleveraging below $1 billion net debt.

Strategic and governance updates

• Successful resolution of Ghana tax arbitration removes $320 million contingent liability.

• CEO Rahul Dhir to step down in 2025; search for successor underway.

• Extension of $250 million revolving credit facility to June 2025.

• Plans to repay 2025 Notes at maturity and refinance capital structure during 2025.

• Framework for capital returns and inorganic growth to be set after refinancing and new CEO appointment.