Tullow Oil Share Discussion Threads

[dodge meister] 17/3/2017 14:32

With a heavy discount rights issue there is usually heavy demand, less so from the spread betters who won't be able to take part. The will be a rise is so up to the third but the spread betters will accumulate to take advantage of the ex date when son share holders will sell to realise the profit on their discount...well that's my thoughts anyway

[lodgeview] 17/3/2017 12:48

Short to 0p

[frazboy] 17/3/2017 12:17

The debt is around $4.0 bn post Rights Issue.

And unfortunately for Tullow then can't even deleverage as much as they would like this year. As we stand today they cannot take full advantage of TEN's FPSO capacity due to the moritorium on drilling until September/October this year (government wrangling over a border). They're currently only have 50,000 bpd of well production capacity against an FPSO capacity of 80,000 bpd.

[mercer95] 17/3/2017 12:13

Same thing happened last year, 6 July with a £300 million bond issue, big fall, small recovery, bigger fall, Tullow has been trading for 32 years, founded in 1985,to carry so much debt, 3 or 4 billion, whatever it is & no dividend to pay & now a rights issue is staggering, I was hoping once ten came online Tullow could reduce the debt, didn't happen.

[steve73] 17/3/2017 12:05

Rich - you understand my thinking totally... So continuing your logic, I could then buy 49@177 and get rights for 25 more at 130, making 74@ 161 & so the price should drop to 161....? rinse and repeat and we steadily drop 151, 144, 139, 136, etc...

After I'd realised this I sold my holding (at 203, for a slight loss) and will probably think about buying a few back at perhaps a 5-10% premium to the RI price... There should be plenty on offer at that time.

[sux_2bu] 17/3/2017 11:59

So it's a Scam...apparently

[sux_2bu] 17/3/2017 11:58

Tullow Oil

Tullow has come to the well again, this time the equity market, where it has announced a 25 for 49 rights issue at 130p to raise £607m. At a 45% discount the shares were fully underwritten which is no great surprise, a good deal of hands being rubbed together at the long list of associated investment banks. The money will shore up the finances which are now looking a lot better than they were and with the debt restructuring and asset sales the balance sheet is almost unrecognisable, it even has cash coming inwards… On the subject of asset sales the company announce that CNOOC has exercised its pre-emption rights in the farm-down to Total in Uganda and will take 50% of the deal which of course doesnt affect Tullow.

Tullow came out of the bucket list in January at 315p having been one of last years best performers, up 203% on the year. I didnt see this coming but did feel that such a performance in a £3bn market cap stock would be difficult to repeat. It won’t go back in yet but shareholders who sold at that price would find it easy to buy back at this mornings 202p, those who didnt sell can take solace by being offered fully underwritten stock at 130p, knowing that part of their money is going to underwriters, what a scam…

[sux_2bu] 17/3/2017 11:57

Coming back to where ?

It's got a long way down to go unfortunately, for holder.

[mj19] 17/3/2017 11:50

Coming back

[nicebut] 17/3/2017 11:49

Didn`t time my buy very well at all!

I see Odey closed a few more over the last few days.

How will the c15% short play this, I wonder? I guess they called it correctly IE were right about the size of the debt.

[sux_2bu] 17/3/2017 11:45

Yup


I'm hearing the rights issue is a scam......70p coming by year end.

[sux_2bu] 17/3/2017 11:39

fking timber! lmfao

[sux_2bu] 17/3/2017 11:34

It might have bounced but it's broke 200p! And about to again, 195p

[gclark] 17/3/2017 11:31

beware the shorting as on the ex-rights date you will have shares added to your account at 130 in the proportion of the offer, so you will be short some shares at 130. This is what I understand. I suggest you check first.

[mj19] 17/3/2017 11:30

According to folks should carry on down on Monday right

[james190] 17/3/2017 11:25

so is this easy money to short to £1.30 if spread betting or should one buy here at £2.00

[mj19] 17/3/2017 11:25

Nope bounced

[sux_2bu] 17/3/2017 11:24

TLW low, 199.80 p so it has.

[gclark] 17/3/2017 11:24

Rich
Thanks for your numbers above. The price should drop to 177p when the shares go ex-rights on 3rd April I believe and any new buyers of shares after then no longer have the right to buy new shares at 130p. But all this depends on what the market will think of Tullow now that it has got more cash.

[frazboy] 17/3/2017 11:23

Surely they will... so long as it doesn't get anywhere near the rights price.

[sux_2bu] 17/3/2017 11:23

It's hanging by a thread now.