Tullow Oil Share Discussion Threads

[sarkasm] 06/2/2022 03:31

DIRECTORS TALK



Tullow Oil plc 30.7% potential upside indicated by Barclays
Broker Ratings

Charlotte Edwards
February 4, 2022
11:05 am

Tullow Oil plc with ticker (LON:TLW) now has a potential upside of 30.7% according to Barclays.



Barclays set a target price of 75 GBX for the company, which when compared to the Tullow Oil plc share price of 52 GBX at opening today (04/02/2022) indicates a potential upside of 30.7%. Trading has ranged between 28 (52 week low) and 66 (52 week high) with an average of 9,962,210 shares exchanging hands daily. The market capitalisation at the time of writing is £750,486,258.

Tullow Oil plc is a United Kingdom-based independent oil and gas exploration and production company.

The Company’s primary activity is the discovery and production of oil and gas. Its segments include Ghana, Non-operated, Kenya and Exploration.

Exploration segment includes Argentina, Comoros, Guyana, Suriname, Peru, Norway, Jamaica and Namibia.

Non-operated segment consists of producing assets, including Uganda and Gabon.

The Company has interests in over 50 exploration and production licenses across 11 countries, including Ghana where it operates the Jubilee and TEN fields.

The Company’s operations are in Africa and South America.

The Company’s subsidiaries include Hardman Oil and Gas Pty Ltd, Hardman Resources Pty Ltd, Tullow Mozambique Limited, Tullow Oil SPE Limited, Planet Oil International Limited, Tullow Congo Limited, Tullow Uganda Holdings Pty Ltd, Tullow Gabon Holdings Limited and Tullow Oil Ltd.

The share price for Tullow Oil plc (TLW.L) is currently trading at GBp53.34 (7.56%)

[mmt1] 05/2/2022 13:10

hxxps://www.thetimes.co.uk/article/pumped-up-oil-firms-fail-to-lift-cautious-market-out-of-the-red-w6vjld30l

tlw mentioned..

[thommie] 05/2/2022 08:26

Yes ss, thats how I see it as well. I guess tullow took a very conservative approach again in calculating the full 150m cost for the asset into the free cash flow number. As we all know this consideration will have been reduced by a very big amount Ehen the deal finally closes. When they announced the deal it was already at around 120m to pay, so reduced by 30m. As we know the oil price was even higher since then and as it is completely unhedged 5-6k bopd it will get the spot price plus a little premium to brent. I guess the consideration atm would be already under 100m, further reducing. With conservative assumptions I guess this wi is currently generating around 50$\bbl netback which would reduce the price to pay by 0,25m evey day, or 7,5m per month. So if we expect the deal Touch close around march or april the final consideration will have been reduced by further 15-22,5$. That would mean tullow adding around 75m $ additional free cash flow for 2022 only by the reduced asset price. People tend to forget, that even if not included into the 2022 guidance atm this production Island generating unhedged profit every single day!

[subsurface] 05/2/2022 02:15

Hi XX

Tullow Pre emption can add to the Cash pile.

If the transaction goes through
looks like Tullow get increased production from 1st April 2021 the price of Oil was circa $64 and increasing.


Consideration

The consideration for the 7.7% increase in equity would be c.$150 million with an economic effective date of 1 April 2021, subject to concluding definitive agreements and closing adjustments. The purchase of the participating interest in the DWT Block will be funded from Tullow’s existing resources.

[fizzmiss] 04/2/2022 21:41

Dear oh dear, phone a friend, if any.

We will see come Monday, Red Red Red.


Those shares bought will be used to short and manipulate the share price lower, let's just see, shall we, petal.

[thommie] 04/2/2022 21:40

Is the misses still moaning about the share price and rahul manipulating it as he wishes? The filtered posts have started flooding the bb again recently...? Should get a husband that keeps her busy, I bet he doesnt know that she is pleasing other men with her wisdom instead of pleasing him!

[xxnjr] 04/2/2022 17:05

Indeed; 1,309,878 UT @ 53.34p

[badger36] 04/2/2022 16:58

Nice 1.3 million buy on the close

[fizzmiss] 04/2/2022 16:31

Yet another crazy day

[rogerc1985] 04/2/2022 14:58

There are better ones out there with less debt than this

[crazi] 04/2/2022 14:48

Brent $93... :-)

Although Tullow is looking good today it is still lagging far behind the other Oils... Really should be much higher than this... imho

[xxnjr] 04/2/2022 11:54

Folks ave brent spot price in Jan was $86.51 meaning we may have already achieved 46% of annual 2022 Budgeted FCF. Basically

2022 FCF Budget is $100m @ $75/bbl (includes Uganda $75m)
with OP sensitivity of ±$10/bbl = ±$100m, or $8.33m/mth

Netting out Uganda, annual FCF budget = $25m, or only $2.08m/mth!!!

At $86.51 actual Jan FCF would have been more like

$2.08m + 86.51/75.00*8.33 = $11.67m, or 46% of projected annual $25m FCF.

FCF is a good proxy for debt reduction. Throw in the additional $75m Uganda FID Cash plus strong cash generation as above then there should be some positive vibes about latest FCF/Debt Reduction Nos with results 9/Mar.

[maywillow] 04/2/2022 11:09

Analysts at Canaccord Genuity lowered their target price on exploration firm Tullow Oil from 75.0p to 67.0p on Wednesday following the firm's recent trading update.

Canaccord Genuity said Tullow's update highlighted early signs of progress on the Jubilee field, with a welcome bump in production after last year's investment, but also showed the scale of the challenge facing operations at its TEN asset as production fell "more rapidly than expected".

"Certainly, the improved field management and higher/more reliable gas offtake and water injection are tangible positive signs, but the company is still only in the foothills of oil production rejuvenation," said the analysts.

The Canadian bank highlighted that in 2022, Tullow's investment continues to, unsurprisingly, be weighted towards its Jubilee field, with three new wells on its "most important" asset.

However, Canaccord also acknowledged that spending on TEN was now picking up, with two new "strategic" wells planned for the second half of 2022 that were not expected to increase crude output until 2023.

"Overall, we still think there is a lot to do to improve confidence in the long-term plan and this year is simply another step towards that goal."

[maywillow] 04/2/2022 11:06

[United Kingdom] TULLOW OIL PLC (TLW)

Real-time Estimate Quote. Real-time Estimate Cboe Europe - 02/04 06:05:00 am

51.88 GBX +4.62%

[dbensimon] 04/2/2022 09:38

Couldn't agree more !!!

[fizzmiss] 04/2/2022 09:01

Not, if US job data is poor come lunchtime, we could see a heavy pull back. As for 60p lol u having a laff, TLW should be 90p by now, well easy if it was not for corrupt share price manipulation.

Raul will still be in bed the lazy fool, pushing out zzzzzzzzzzzzzzzzzzzzzzzz

Oil still flying and the MM are already cooking the books and bringing the share price back down for their sewer rat shorter mates.

[fizzmiss] 04/2/2022 09:01

lol Oh my gawd, this is shockingly bent!

[crazi] 04/2/2022 08:34

BP & Shell at post covid highs and climbing...


City A.M.
@CityAM
European oil facilities hit by wave of cyber attacks


Time for MM's to swing the Weighting to the BUY side and take advantage of the oil price rally... Could see this back over 60p next week.

[crazi] 04/2/2022 08:15

Nice to get an Upgrade... wouldn't 75 be nice :-)

Brent $91.3 doing very well...

[boix] 04/2/2022 06:51

4th Feb 22 Alliance News
BARCLAYS RAISES TULLOW OIL PLC TO 'OVERWEIGHT' (EQUAL W.) - TP 75 (60) PENCE

[waldron] 03/2/2022 21:23

Plastic Will Fuel Oil Demand For Years To Come

By Felicity Bradstock - Feb 03, 2022, 3:00 PM CST

As the world attempts to transition away from fossil fuels, demand for oil from transport and energy generation is sure to decrease at some point.

One sector that will have increasing importance to the oil industry as demand in other areas drops off is petrochemicals, a sector that is expected to see long-term growth.

A difficulty that must be addressed in this sector is plastic pollution, something that oil giants will have to contend with as they build out their petrochemical futures.


As Big Oil worries about the looming threat of renewable alternatives, with governments and international organizations putting pressure on countries and companies to curb fossil fuel production, petrochemicals will become increasingly important. With oil majors continuing to invest in oil and gas projects, they want to be sure that their new exploration and production operations pay off in the long run, an issue that’s becoming increasingly uncertain. However, as the demand for petrochemicals increases worldwide, energy firms can be safe in the knowledge that if oil demand in some sectors wanes there will still be a use for their ‘black gold’.

When we think about oil, we often think about it as an energy source, giving little consideration to the other ways in which it’s used. But much of the oil from around the world actually goes into producing everyday products such as clothing, tires, digital devices, packaging, detergents, and fertilizers. In 2018, petrochemical feedstock accounted for around 12 percent of global oil demand. This is a figure that is expected to increase substantially over the next few decades, as experts expect 10 million metric tonnes of growth in the petrochemicals industry every year between now and 2050.

Big Oil is investing in petrochemical projects, particularly focusing on plastics, as demand is expected to increase substantially in the coming years. The International Energy Agency (IEA) predicts that plastics derived from fossil fuels will drive almost half of oil demand by 2050, as one of the last remaining sectors to decarbonize. Judith Enck, Founder and President of the nonprofit organization Beyond Plastics, believes "Plastics is the Plan B for the fossil fuel industry."

Plastics are commonplace in the developed world, with governments now planning to curb the use of certain products such as single-use plastics. But as energy firms invest in expanding their petrochemicals business, many are aiming their products at the Asian and African markets, where they expect demand to continue increasing. Most of these plastics are currently being produced in the U.S. and the Middle East, with China being the biggest importer.

But many are concerned about the increase in the production of plastics. Estimates suggest that only 9 percent of the plastics ever created have been recycled, with most products ending up in landfills. A growing number of people surveyed around the world say they support the banning of single-use plastics as environmental organizations highlight the growing impact of waste plastic on nature and wildlife.

But now, engineers at West Virginia University think they may have the solution. Working alongside the U.S. Department of Energy in a public-private partnership, the engineers are attempting to increase the rate of recycling for single-use plastics and convert them into valuable aromatics used in the production of petrochemicals.

The main issue with recycling plastics through this process is it generally releases high amounts of greenhouse gasses into the atmosphere. The researchers are aiming to use a simple one-step microwave catalytic process to upcycle single-use plastics into high-value benzene, toluene, and xylene (BTX) for use as petrochemical materials.

Braskem, Wang, Research Assistant on the project, explains, “the produced ethylene and BTX aromatics from plastic upcycling can be used as feedstocks to re-make plastics.” Further, “That will reduce demand on fossil fuel-derived ethylene and BTX aromatics from conventional petroleum refinery, leading to a reduction in greenhouse gas emissions,” he said.

As uncertainty around sustained oil demand over the coming decades grows, with much depending on the development of renewable alternatives, Big Oil wants to make sure their new investments will still see a return even as demand wanes. Many energy firms had a glimpse of what decreased demand might mean for them as the pandemic restrictions of 2020 came into place, sending oil demand and prices plummeting. By developing their petrochemicals portfolio and converting oil into other high-demand products, companies can ensure that even faced with uncertainty they keep their business profitable.

While researchers are working hard to develop more sustainable petrochemical alternatives, such as bio-based plastics and specialty chemicals, these products are still much more expensive than fossil fuel-derived products. Despite a huge recent drive to develop renewable energy alternatives, petrochemical alternative production is still in its infancy, meaning that oil and gas firms are likely to benefit from the gap in the market beyond the lifespan of fossil fuel-generated energy.

But not all governments are on board with Big Oil’s idea to focus on petrochemicals, as they strive for the decarbonization of national economies. In Antwerp, Belgium, British company Ineos is facing opposition over the construction of a giant plastics plant. Owner of Ineos, Sir Jim Ratcliffe, announced a $3.4 billion investment in the plant in 2019, with the intention of expanding the firm’s petrochemicals business in Europe.

The plant would mark the biggest petrochemicals investment in Europe, and Ineos expects it to contribute 450 jobs on-site and 2,250 in associated companies. Construction is planned to begin later this year, but several NGOs and the Dutch province of Zeeland question whether the new ethylene “cracker”; will lead to an increase in the production of single-use plastics as well as the release of more nitrogen into the atmosphere. Seeing whether this project goes ahead or not could determine the development of similar projects by other oil and gas companies in the future.

Big Oil is betting big on petrochemicals as a backup for oil being used purely as an energy source, as the growth of the renewable energy sector threatens to dethrone some of the world’s energy giants. However, many oil and gas firms are likely to face strong opposition from governments and climate activists in the process, potentially driving some to look for innovative technologies to establish lower-carbon practices without giving up on oil.

By Felicity Bradstock for Oilprice.com

[fizzmiss] 03/2/2022 20:48

WOW WOW WOW!

[fizzmiss] 03/2/2022 20:21

Won't make a difference to TLW, crooks running the books

[alfiex] 03/2/2022 20:11

Poo now over $91