Tullow Oil (TLW) H2 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in 2025, with momentum continuing into early 2026 and significant strategic initiatives, including value-accretive divestments generating approximately $387 million in proceeds for 2025-26.

• Achieved near 100% uptime at Jubilee and TEN fields, driven by proactive maintenance, upgrades, and operational improvements.

• Completed comprehensive refinancing, strengthening the financial position, extending debt maturities, and improving liquidity.

• Production in Q1 2026 averaged 43,400 boe/d, up from 40,400 boe/d in 2025.

• Enhanced governance with a reset Board and aligned senior leadership.

Financial highlights

• 2025 production averaged 40,400 boe/d, with realized oil prices at $66/bbl; first four cargoes in 2026 averaged $90/bbl, with one cargo at $130/bbl.

• 2025 CapEx was $166 million, mainly for Jubilee drilling; 2026 CapEx guidance is $200 million, focused on six Jubilee wells.

• 2025 free cash flow was $99 million, inclusive of $347 million from asset disposals; decommissioning spend was $17 million.

• Net cash G&A reduced to $45 million in 2025, with a further reduction to $25 million targeted for 2026.

• 2026 pre-financing cash flow guidance is $260–$365 million at $70–$100/bbl oil; free cash flow expected at $70–$175 million after financing costs.

Outlook and guidance

• 2026 production guidance is 34,000–42,000 boe/d, with expectations at the high end if current trends continue.

• Oil price guidance for 2026 set at $70–$100/bbl, reflecting market volatility.

• G&A expected to decrease further to $25 million; capital expenditure guidance is $200 million.

• Material uplift in organic cash flow anticipated for 2026, with upside from higher oil prices.

• Multiple drilling campaigns and asset optimization planned to drive future growth.