Tullow Oil Raises Free Cash Flow Guidance Amid Stronger Output
Tullow Oil's first-half production rose 7% year over year to 43.7 kboepd, exceeding expectations and prompting the company to lift its full-year free cash flow guidance to $170 million-$250 million from $70 million-$175 million.
Operating cash flow reached $222 million in the first half of 2026, with capital spending staying on track at $200 million for the year. The refinancing completed in April extended key debt maturities and secured a $100 million cargo prepayment facility with Glencore.
Tullow shares fell 3.02% to $20.90 after the update, reflecting investors' focus on leverage, tax disputes, and lack of headline EPS or revenue figures. Despite this, Chief Executive Ian Perks emphasized that 'we are delivering our strategy and seeing tangible results,' with stronger foundations and operational focus feeding through to higher production, lower costs, and better cash generation.
Management highlighted the company's effort to support reservoir performance and sustain output over time, citing water injection as a key factor in oil production. The company also plans to buy the TEN FPSO in early 2027, expecting it will improve field economics by removing annual lease costs.