Tullow Oil Share Discussion Threads

[inntolife] 01/6/2022 14:54

Hello, As a CNE holder please would someone explain to me just what TLW did two years ago to warrant their large drop in share price and are the board members still in place that mucked up ?
Thanks

[kulvinder] 01/6/2022 14:36

Really thought we would see 75p by August if this meger had not been announced, this now is going to hinder any upward movement for some time now till market sees or gains some confidence in the new merged company with I would have thought consolidation of shares....so what price we end up after that I don't know.

[thegreatgeraldo] 01/6/2022 14:18

Strikes me as a pretty smart deal by both sides.... there again, it's all a matter of opinion...

[sbb1x] 01/6/2022 14:10

Bad deal for CNE

[mcsean2164] 01/6/2022 13:36

Seems criminal. Dorothy talking down the prospects of tullow followed by a firesale of several assets, Rahul giving poor forward guidance and now this.

Even the market cap of CNE v tullow alone would suggest a 47/53 split is wrong. Tullow shareholders shafted massively again. I hate this company now

[ammons] 01/6/2022 13:34

Got to larf!!!

CNE and TLW holders each claiming to have been shafted!! LOL!!!!!

I am a CNE holder. Guess what?? I think I have been shafted and hope a better offer for all the cash comes along!!

[djderry] 01/6/2022 13:10

If it creates a stronger balance sheet with accompanying cash flows and it's valuing Tullow appropriately,then I'm in favour.I'm still trying to figure out the 'if' part of that.

[frontdoor bull] 01/6/2022 13:07

Pure donkey, should be @ least 250p by now 🤬

[kulvinder] 01/6/2022 12:16

They would be, as they appear to be getting a better deal with TLW shares at around 52p each to rhat of the current price of 55p...

[badger36] 01/6/2022 12:05

Capricorn up nearly 4 percent

[bootycall] 01/6/2022 10:22

Cost savings of $50m will be dwarfed by reductions in debt service costs as debt multiple falling to 1X by end of 2022? allowing refi in 2023. Expect a 500 basis point saving ? credit rating will benefit from geographical diversification of production profile. Rahul should have waited for Kenya to close…we already had cash to do second rig because of cost recovery terms in PSC so I am not pleased with his explanation. Henceforth, the combined companies results in a stronger, more diversified group, but Rahul is finally talking about the upside of Ten and a second rig…things we could have enjoyed in any event . We do not appear to be overpaying for Capricorn which is something but i view the whole exercise as a bit of a disguised rights issue. Shares will still go up IMO but we have just lost out on a proper Kenya rerating. Lots of investment banks with their noses in the troughs again I am afraid . Institutional interest might be reinvigorated from a much more diversified and lower geared dividend paying entity .
Short term I see this as dilutive but if the excess capital is sensibly deployed we can extract value more quickly. I think Rahul wants to be the hunter not the hunted. I would prefer he be the hunted and we get the premium . Booty

[bloomberg2] 01/6/2022 10:22

Share consolidation coming

[xxnjr] 01/6/2022 10:08

Hello Nigel. The UKNS tax Q got answered in a good way.

[waldron] 01/6/2022 10:06

Jamie Ashcroft

08:51 Wed 01 Jun 2022


Tullow Oil and Capricorn Energy agree to merge


Tullow Oil PLC (LSE:TLW) and Capricorn Energy PLC (LSE:CNE, OTC:CRNZF) have agreed to merge to create “a leading African energy company with a material and diversified asset base and a portfolio of investment opportunities delivering visible production growth.”

Capricorn shareholders will receive 3.8068 new Tullow shares in the deal, which will see them together own some 47% of the new company whilst Tullow’s owners will own the other 53%.

It will comprise low-cost producing assets and a deep portfolio of incremental high return investment opportunities in Ghana, Egypt, Gabon and Côte d'Ivoire, the companies said in a statement.

Specifically, it will have Tullow’s major resource development project in Kenya along with Capricorn's Egypt portfolio which has opportunities to develop self-funded production growth via infill drilling and low-cost exploration. Further afield, upside remains through exploration assets in Guyana and Mauritania.

Together, the new company will have some 96,000 barrels oil equivalent production per day from a base of reserves and resources measuring 343mln and 696mln barrels respectively.

Wednesday’s statement highlights some US$50mln of pre-tax net cash cost synergies resulting from the combination of the businesses.

It is expected to have US$1.8bn of liquidity. Cumulative pre-financing free cash flows are forecast at around US$2.4bn over the 2022-2025 period, based on a US$75 per barrel crude oil price, and it expects to deliver “rapid deleveraging” in the future.

Dividends will resume – presently Tullow has no distributable reserves and is therefore currently unable to pay dividends – as a capital restructuring will take place alongside the merger.

It is anticipated that a base annual dividend of US$60mln will be paid out per year.

Tullow chief executive Rahul Dhir will be chief executive of the combined company, whilst Capricorn chief financial officer will take the CFO role. Tullow chiar Phuthuma Nhleko will be chairperson whilst Nicoletta Giadrossi will be senior independent director.

Simon Thomson, Capricorn’s chief executive, will become chair of the Integration Steering Committee to help with the integration of the two companies.

“The boards of Tullow and Capricorn believe the combination has compelling strategic, operational and financial rationale, with the ability to deliver substantial benefits to shareholders, host nations and other stakeholders,” the companies said in a joint statement.

“The combination represents a unique opportunity to create a leading African energy company, listed in London, with the financial flexibility and human resource capability to access and accelerate near-term organic growth, add new reserves and resources cost-effectively, generate significant future returns for shareholders, and pursue further consolidation.”;

[xxnjr] 01/6/2022 10:00

Sorry ofc i meant CFO, not CEO!!! I can't multi-task.

On the call Rahul mentioned looking at 2nd rig for Gh possibly 2023 2nd half (or was it 1st half, sorry forgot already)

Mood music of the analysts seemed quite positive.

I'm also a CNE holder so it doesn't really diversify my risk!

Was happy the guy in the centre seemed to be in pole position, with the guy on the left answering quite a few of the questions, with the guy on the right having minimal input. Saying this as a CNE shareholder. Make of that what you will.

[nigelpm] 01/6/2022 09:58

CFO I think you mean?

[thommie] 01/6/2022 09:43

Jeah, quite strange to be announced as New cfo and to lose it just a few moments later. But Im sure he will get some millions for not having to work and can chill in the sun instead :)

[xxnjr] 01/6/2022 09:30

Maybe not a good day for the ENQ CEO who was joining TLW as their new CEO?

[thommie] 01/6/2022 09:21

Didnt see that coming as well. I dont have a clue about capricorn, but I heard they have the cash to improve our balance sheet and tlw has the assets for organic growth.It makes the ship more steady and secure again. I guess it's a smart move. The 2nd rig for ghana might be announced soon after the shareholders voted in favour of the deal, enabling to drill out the ghana potential.It's better to give some potential away in a merger than to pay 80% of profits to the creditors.But in the end it will finally enable tullow to unlock its intrinsic value.It might also influence the potential kenya farm out deal, as it gives tlw the option to say no to bad offers, as they could be able to develop kenya on their own without farming down if needed. Though I hope they will still farm down!

[oilretire] 01/6/2022 09:21

Link to download the presentation here, not had a chance to look at it yet.hTtps://www.capricornenergy.com/all-share-combination/

[cumnor] 01/6/2022 09:05

Make no mistake, excellent and canny move by Rahul. This will interest larger O&G funds with Tlw debt no longer an issue-back to industry norm levels-and dividends with prospects of extra payouts very likely with POO likely to remain over $75 ((base case) for a long time yet.

[subsurface] 01/6/2022 09:02

presentation just started XX

[xxnjr] 01/6/2022 08:59

Just seen it. Haven't read the RNS yet. 1st thoughts.

Didn't see that coming.
Happy its not onshore Nigeria which would have been an ESG disaster!

Reduces dependence on Ghana which is good. The Egyptian assets are quite good only issue I can see is that at times Gov.EG are sometimes slow payers when their backs are against the wall which may happen again with Ukraine effects (high food prices etc).

Stronger combined balance sheet should help Tullow refinance their bonds.

Not sure why CNE have thrown the towel in though.