REG - Tullow Oil PLC - AGM Trading Update

Tullow OilAnnouncement

16/05/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240516:nRSP6191Oa&default-theme=true

RNS Number : 6191O  Tullow Oil PLC  16 May 2024

Tullow Oil plc

 

AGM Trading Update

 

16 May 2024 - Tullow Oil plc (Tullow) issues the following statement in
advance of the Group's Annual General Meeting (AGM). The meeting will take
place at Tullow Oil plc, Building 9, Chiswick Park, London, W4 5XT at 11:00
BST today. We are also enabling shareholders to listen to the AGM as well as
participate remotely. Instructions for joining the audio cast can be found at
the end of this statement or within the Notice of Meeting
(https://www.tullowoil.com/application/files/5317/1102/2642/Tullow_Oil_plc_Notice_of_Annual_General_Meeting_2024.pdf)
.

The Group will publish its 2024 Half Year Results on 7 August 2024.

The information contained herein has not been audited and may be subject to
further review and amendment.

Rahul Dhir, Chief Executive Officer, Tullow, commented today:

"I would first like to thank our investors, host nations and host communities
for their support. At the AGM meeting later today, I look forward to
reflecting on the substantial progress Tullow has made and the strong outlook
for the future as we continue our trajectory to build a unique pan-African
platform for growth.

Since the start of the year, we have seen good delivery of our operational
programme. We are on track to deliver our free cash flow expectations of
c.$600 million over 2024 to 2025 at $80/bbl and we are well placed to
capitalise on a higher oil price environment. At the same time, we are
positioning ourselves to deliver material sustainable free cash flow in 2026
and beyond."

Financial update

·      Full year free cash flow guidance remains $200-300 million at
$80/bbl, with a weighting towards the second half of the year largely driven
by the timing of cash tax payments, liftings and revenue receipts and phasing
of capital spend.

·      Increased access to oil price upside for the remainder of 2024
and 2025 as legacy hedges fully roll off in May 2024 (see table below for
latest position).

·      An increase of $10/bbl across the year to $90/bbl would generate
an additional c.$100 million of free cash flow.

·      On track to reduce net debt to less than $1.4 billion and cash
gearing of net debt to EBITDAX to c.1x at $80/bbl by the end of 2024.

·      On track to deliver c.$600 million free cash flow over 2024 to
2025 at $80/bbl and sustainable free cash flow generation thereafter.

 

Operations update

Group Production

·      Group working interest production in the first quarter of 2024
was c.59 kboepd, including c.7 kboepd of gas production, within the expected
range for the period. 2024 Group working interest production guidance remains
62-68 kboepd, with the full-year outcome expected to be towards the lower end
of the range.

Ghana

Jubilee

·      Jubilee oil production in the first quarter was c.93 kbopd gross
(c.36 kbopd net). Three new wells were brought on stream during the period and
production efficiency was high at c.99%.

·      In April 2024, a further production well was brought onstream and
a water injector well is expected online later in the second quarter. This
will bring the current drilling programme to an end, approximately six months
ahead of schedule.

·      Rates from the most recent production wells are lower than
pre-drill expectations as work continues to optimise pressure support across
the field.

·      Lower incremental production from these wells will likely result
in Group full-year production towards the lower end of the guided range. This
does not impact Tullow's cash flow guidance as the total number of liftings
expected from Ghana remains unchanged.

·      Net gas export during the first quarter was c.6.5 kboepd. The
interim gas sales agreement that is currently in place for Jubilee associated
gas has been extended for 18 months at c.$2.95/mmbtu with applicable
indexation.

 

TEN

·      TEN production in the first quarter was ahead of expectations at
c.19 kbopd gross (c.10 kbopd net), supported by production efficiency of c.99%
and optimisation of existing wells.

·      Work and engagements continue on the future development options
for the TEN fields including the long-term gas sales agreement and the
potential to unlock further opportunities around the existing TEN
infrastructure.

Non-operated and exploration

·      Production from our non-operated portfolio in Gabon and Côte
d'Ivoire was in line with expectations at c.13 kboepd net in the first
quarter.

·      Tullow was deeply saddened to learn of the incident at the
Perenco-operated Simba field in Gabon on 20 March 2024, which resulted in
fatalities. Tullow's thoughts are with all those affected by this event and
the Group continues to offer its support to the operator.

·      As a consequence of the incident, the Simba field remains shut in
while the operator completes the incident investigation. Net production from
the Simba field was expected to average c.1.3 kbopd in 2024 but there is scope
to make up any shortfall from other fields in the portfolio. Therefore cash
flow from the portfolio remains unchanged.

Hedge Portfolio

 Oil hedge portfolio as of 30 April 2024               May/June 2024      2H 2024           1H 2025
 Downside protection                                   61%  /  $59        61%  /  $60       25%  /  $59

 (% of production/average protected price per bbl)
 Capped upside                                         23%  /  $91        25%  /  $112      n/a
 (% of production/average price cap per bbl)
 Call spreads*                                         2%  /  $106-115    15%  /  $83-93    17% /  $94-104

 (% of production/average call spread range per bbl)

* Oil price upside giveaway limited to the call spread range

 

AGM audio cast

11:00am BST

This year, we are enabling shareholders to listen to a live audio cast of the
AGM as well as participate remotely.

In order to participate at the meeting, you will need to visit
http://www.meetnow.global/TULLAGM2024 (http://www.meetnow.global/TULLAGM2024)
on your device operating a compatible browser using the latest version of
Chrome, Firefox, Edge or Safari. Please note that Internet Explorer is not
supported. It is highly recommended that you check your system capabilities in
advance of the meeting day.

If you are a shareholder, you can use your unique Shareholder Reference Number
and PIN as displayed on your Form of Proxy/Attendance Card. If you are an
appointed proxy or a corporate representative, you will have had to be
provided with a unique invite code to enter the meeting and exercise your
rights. These credentials will be issued one working day prior to the meeting,
conditional on evidence of your proxy appointment or corporate representative
appointment having been received and accepted. If you have not been provided
with your meeting access credentials, please ensure you contact Computershare
on the morning of the meeting, but no later than one hour before the start of
the meeting.

Access to the meeting via http://www.meetnow.global/TULLAGM2024
(http://www.meetnow.global/TULLAGM2024) will be available from 10.00am. During
the meeting, you must ensure you are connected to the internet at all times in
order to vote when the Chair commences polling on Resolutions being put to the
meeting. Therefore, it is your responsibility to ensure connectivity for the
duration of the meeting.

Technical issues

If you experience any technical issues with the site, you may either call our
Registrar on the telephone number provided on the site or once you have
entered the meeting, you can raise your question using the chat function. If
you have technical issues prior to the start of the meeting, you should
contact our Registrar on the shareholder helpline.

Process

The process of asking questions and accessing the AGM audio casting will be
further explained within the application and located on the information page.

 CONTACTS
 Tullow Investor Relations                    Camarco (Media)

                                            (+44 20 3781 9244)
 ir@tullowoil.com (mailto:ir@tullowoil.com)

                                            Billy Clegg
 Nicola Rogers

 Matthew Evans                                Andrew Turner

                                              Rebecca Waterworth

 

Notes to editors

Tullow is an independent energy company that is building a better future
through responsible oil and gas development in Africa. The Company's
operations are focused on its West-African producing assets in Ghana, Gabon
and Côte d'Ivoire, alongside a material discovered resource base in Kenya.
Tullow is committed to becoming Net Zero on its Scope 1 and 2 emissions by
2030 and has a Shared Prosperity strategy that delivers lasting socio-economic
benefits for its host nations. The Group is quoted on the London and Ghana
stock exchanges (symbol: TLW). For further information, please refer to:
www.tullowoil.com (http://www.tullowoil.com/) .

Follow Tullow on:

X: www.twitter.com/TullowOilplc (http://www.twitter.com/TullowOilplc)

YouTube: www.youtube.com/TullowOilplc (http://www.youtube.com/TullowOilplc)

Facebook: www.facebook.com/TullowOilplc (http://www.facebook.com/TullowOilplc)

LinkedIn: www.linkedin.com/company/Tullow-Oil
(http://www.linkedin.com/company/Tullow-Oil)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGMQKPBPABKDAPD