Tullow Oil (TLW) Trading Update summary

Strategic and financial priorities

• Focus remains on strengthening the balance sheet and accelerating deleveraging through non-core asset sales, with Gabon and Kenya disposals expected to generate $380 million in near-term cash proceeds.

• Plans to refinance capital structure in 2025, supported by a cost optimisation program targeting $10 million in annual G&A savings and disciplined capital allocation.

• Net debt at 31 March 2025 was $1.6 billion, with year-end net debt expected to fall to $1.1 billion, assuming successful asset sales and receipt of overdue payments.

• Full-year free cash flow guidance is $400 million at $65/bbl, including disposal proceeds and overdue gas payments from Ghana.

• Revolving Credit Facility extended to October 2025, reduced to $150 million, and will be repaid and cancelled upon Gabon disposal completion.

Operational performance and outlook

• Q1 2025 working interest production was 52.9 kboepd, including 7.1 kboepd of gas, within guidance and impacted by planned Jubilee field maintenance.

• 2025 production guidance remains 50–55 kboepd, including about 6 kboepd of gas, prior to Gabon transaction completion.

• Ghana drilling campaign underway, with the first Jubilee producer well expected online in Q3 2025.

• 4D seismic survey analysis in progress to inform future well locations and support reserves growth.

• Hedge portfolio covers about 60% of 2025 forecast sales at $59/bbl, rising to 70% post-Gabon sale.

Asset sales and cost management

• Gabon portfolio sale for $300 million net of tax is progressing, with regulatory approval received and completion expected mid-year.

• Heads of terms signed for Kenya asset sale for at least $120 million, with $80 million in payments expected in 2025 and potential for additional royalties.

• Cost base optimisation identified $10 million in annual G&A savings, reducing net G&A to $40 million, with further savings anticipated post-disposals.