Tullow Oil (TLW) Trading Update summary

Operational performance

• Group production year-to-date averaged around 62 kboepd, including 6.5 kboepd of gas, aligning with guidance.

• Jubilee oil production averaged 89 kbopd (34.5 kbopd net) to end-October, below expectations due to well underperformance, unplanned downtime, and power outages.

• TEN oil production averaged 19 kbopd (10.5 kbopd net), above expectations, with positive well responses to optimisation.

• Non-operated production in Gabon and Côte d'Ivoire is on track to average 10.5 kbopd net in 2024.

• Decommissioning in Mauritania completed ahead of schedule and below budget; Simba field in Gabon brought back onstream and new discovery made.

Financial and capital structure

• Revolving Credit Facility extended to June 2025, providing $250 million in headroom.

• No uncovered debt maturities until May 2026; options being pursued to manage and optimise capital structure.

• Free cash flow for 2024 expected at $150-200 million, below previous guidance due to timing of payments and overdue gas payments from Ghana.

• Year-end net debt projected at approximately $1.4 billion.

• Outcome of Ghana Branch Profits Remittance Tax arbitration expected by year-end.

Guidance and outlook

• 2024 group production guidance reiterated at around 62 kboepd.

• Capital expenditure and decommissioning spend guidance maintained at $230 million and $70 million, respectively.

• Final free cash flow position will depend on realised prices of four cargos, receipt of overdue gas payments (~$40 million), and working capital movements.

• Water injection and gas offtake improvements at Jubilee expected to mitigate recent declines.

• 4D seismic programme in Ghana to start January 2025 to optimise future drilling.