Tullow Oil on track to deliver US$600 million free cash flow over next two years

Tullow said the start-up of Jubilee South East offshore Ghana drove production and boosted 2023 cash flow ahead of its expectations

Joseph Appiah-Dolphyne January 25, 2024

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West Africa-focused Tullow Oil, opens new tab said on Wednesday it was on track to deliver about US$600 million free cash flow over the next two years to achieve its stated target of US$800 million from 2023 to 2025, sending its shares about 8% higher.

The London-listed oil and gas explorer said the start-up of Jubilee South East offshore Ghana drove production and boosted 2023 cash flow ahead of its expectations, adding that the year-end net debt was reduced by about US$250 million to US$1.6 billion.

The energy firm said its 2023 working interest production averaged about 63,000 barrels of oil equivalent per day (kboepd). It expects output to average between 62 and 68 kboepd in the 2024 fiscal year.

Jefferies analysts wrote in a note that Tullow’s production forecast was in line with their estimates, and the focus would likely turn to Ghana output expectations once a drilling break occurs after this year’s five-well Jubilee programme.

The London-listed company said it plans to spend about $250 million in 2024, with about 60% of the capital expenditure allocated to the Jubilee programme.

Shares in the company were up 7.7% at 32.52 pence as of 1337 GMT, topping the FTSE 250 (.FTMC), opens new tab index.

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