Tullow Oil Share Discussion Threads

[subsurface] 20/3/2023 11:16

Thanks for that XX,very interesting to see what they say.
Not sure what urgent action they can take thus far, little interest has been shown in our assets.
Investor confidence is at an all time low,Risk management should be at the heart of every management decision.

[jugears] 20/3/2023 11:06

xxnjr, The only question you need to ask is when the entire board are going to resign, absolute shambles all of them!

[xxnjr] 20/3/2023 10:58

Here are my hastily written Q's. Rahul will understand them but I doubt if they will get an airing today.

1. Why didn't the company take advantage of recent very high oil prices to hedge more of 2024 production with a view to protecting our capacity to repay debt and avoid bankruptcy?

[11,305 bopd of 2024 is hedged at $55 and no hedges have been added since Q4/2021]

2. Uniquely for a highly indebted E&P, the company has employed a contrarian strategy of prioritising production growth over reducing debt. When our CEO assumed control Jubilee was producing 90,830 bopd and TEN 48,854 bopd. Currently production is c.72,500 bopd on Jubilee and c.22,000 bopd on TEN. Has the production growth strategy failed so far? And what confidence can we have that new JSE wells "will produce at 10K to 15K" as per CMD Pres material?

3. Why is it that the targets in the TIP are set so low that CEO's routinely gain 2X awards for average company outcomes. And why are the production triggers in TIP materially below production projections mentioned in company presentations. Kindly return the comparator index to E&P as moving to FTSE could be considered as gaming the system to deliver higher awards to our CEO's.

And may I suggest the company takes urgent action to prioritise debt repayment otherwise company will go bankrupt!

[mcsean2164] 20/3/2023 10:33

If I recall correctly, there was a belief a while back that Rahul had steadied the ship. Was this just nonsense?

POO is pretty weird lately I guess due to the war?

OECD stocks seem to be significantly down.





And yet crude is down considerably, this could be a bumpy year!
Should Rahul be out on his ear?

[badger36] 20/3/2023 10:15

Good man Rahul. Complete destruction of the company and paid for it

[subsurface] 19/3/2023 10:14

Drilling to stand still, perhaps to arrest decline in production on Jubilee and Ten.

Another example

Millions paid in bonuses to UK Silicon Valley Bank staff days after £1 rescue

[xxnjr] 19/3/2023 09:33

Yes stupid decision to prioritise production growth over debt repayment. There hasn't been any sustained production growth so far and debt is far too high and will go even higher in the first half. Can't possibly see why Rahul has seemingly been awarded a large bonus again this year.

[bones698] 19/3/2023 06:16

Oil tipped to hit $40 a Barrell due to recession . That will hurt tlw and they should have used the profits to pay down debt a lot more agressively when they had the chance .this will continue to fall with oil prices .debt pule has always been a massive burden and the management didn't use the high oil prices to pay it down quick enough when they had the chance

[xxnjr] 18/3/2023 23:13

JSE subsea construction in full swing now

BE 804 has been on location for a while now


And Skandi Africa has just arrived

[kulvinder] 17/3/2023 11:59

The top brass are not bothered with the likes of the us small time share holders, unfortunately it is no longer a stock market like it use to be, as any news flow was slow in the past, these days with all the financial channels like Bloomberg and Twitter etc, it far too easy to cause panic and fear among small investors like us and for the market makers to manipulate the price up and down at will, coupled by all the algorithms.

[xxnjr] 17/3/2023 11:54

The Shell guy also gets bonus. That will probably bump his remuneration up to £5m for 2023. But that's ok as their profit last year was $42,874m! Yes. $43 billion.

TLW only made $49m, or 85/10000th of Shell.

Based on Shell, pro-rata Rahul should receive £5,800 per annum.
Obviously not enough. But clearly £1.5m to £3m is way too much for a business thats barely able to maintain output at the bottom of the Capital Markets Range; which was 60K to 80K bopd over 10 yrs. The targets in the Tullow Incentive Plan are set so low it means the CEO gets a 2X bonus for poor outcomes.

[badger36] 17/3/2023 11:51

They will screw shareholders with total impunity. Listed companies are now just an opportunity for the top brass to steal under the guise of executive and board decision making. When they have evaporated shareholder value they sell the remainder and join the board of the new entity and rinse and repeat

[spacedust] 17/3/2023 11:37

If me and my wife collectively work our entire lives say 45yrs we still won't earn what this chap is earning 1 yr

So his 1 yr is greater than 90yrs of salary

[crazi] 17/3/2023 10:43

He is definitely overpaid if he gets £3M...

Shell CEO is in all fairness underpaid. BP CEO is on something like £13M last year - crazy money

Oil edging up again...

[xxnjr] 17/3/2023 08:38

Same number of TIP share awards as last year. Kind of implies his remuneration will be similar to 2021 when Rahul's total remuneration was £1,860,806. Base pay was £580,000 + Bonus Cash £580,000 + Deferred Shares Approx £606,798 + Pensions £87,000 + Taxable Benefits £7,000. That was for a bad year of under achievement. In a 'good' year Rahul could receive over £3,000,000.

Plus we gave him 9,000,000 share options when he joined the company to compensate for loosing his options from a previous employer. But as his previous employer was Delonex which effectively failed under Rahul one presumes those options ought to have been worthless!



How Warburg Pincus' prized Delonex Energy crumbled under new Tullow CEO's rule

".....things soon went from bad to worse for the junior oil firm Delonex Energy. Under Rahul Dhir, who left in July to take over the helm of Tullow Oil"

Ever wondered how much the CEO of Shell earns?

According to Shell's Annual Report

"Wael Sawan was appointed as CEO on January 1, 2023, on a salary of £1,400,000. No increases are anticipated during 2023."

If you think Rahul remuneration is too high, or bad value for money then consider sending in a Q to Mondays Webinair:-

[mcsean2164] 16/3/2023 16:51

I think we have Dorothy to thank for the interest rate. Goosed. Just looking forward to closing out my shares at some point. I think 60p would reflect a 50% loss, I don't see it as unachievable and will look to exit around them. That's some cheek from Rahul and likely to be worth a lot more. Some reward for sweet fa.

[subsurface] 16/3/2023 14:30

Oil price has dropped $10 in the last few days now $72
Ithink a lot rests on China if they end up getting sanctions for helping Russia with arms or invading Taiwan what would that do to the Oil price and Tullows plan.

[bones698] 16/3/2023 14:26

Seems to be common practice atm for rewarding poor results. Another company just done similar after seeing it's shareprice crash from 160p to 23p and awarded ltip shares at 45pto it's CEO .
Great when you can reward poor performance .

Tlw won't rise until they get that debt pule down by over 50% from here as the cost of servicing is far too high with high interest rates etc causing issues . They need to reduce expenditure massively for a year or two and focus on that . Until they do this won't go up significantly .

With the risks to oil price,inflation and debt repayment all wdighing in the shares as risk it needs to reduce rapidly . They steadied the ship thanks to buoyant oil prices and steady field performance ,now the need to focus on reducing debt while oil prices remain high or face another wrecking ball if something goes wrong

[xxnjr] 16/3/2023 14:08

How wonderful if you can get it. I see the Remuneration Committee have just granted Rahul 1,104,269 zero cost shares. Our CFO also gets 280,576 zero cost shares. So it looks like the RC have awarded a salary bonus under TIP with I believe from memory about half of the award being in deferred shares.

[xxnjr] 16/3/2023 09:58

The $1.8bn 10.25% 2026 bond refinancing has been ruinously expensive.

Net debt was $2.8bn in 2019. Annual interest paid on that was $216m.
Net debt reduced to $1.9bn in 2022. Yet annual interest paid has increased to $250m.

In addition the bonds cost $19m to arrange. And came with a stipulation that 75% of production be hedged at $55/bbl for 2 yrs from refinancing date. 18 months of $55 OP hedging to 2022 year end resulted in hedging losses of $472m.

About $1bn and counting down the drain.

[crazi] 16/3/2023 08:58

Personally I believe that the share price should be between 35 to 45 as oil moves between 75 to 85. That would be realistic value.

Growth will be slow but at least things have steadied and the debt is reducing now. CEO needs to replace the Corporate Brokers next as this mob are a lead weight on the share price.

[bones698] 16/3/2023 08:24

Should be paying the debts down a lot faster while oil prices are high . That debt will always be a huge burden around their neck even while the business performs well generally .

The concern is if oil prices fall it leaves them vulnerable once again . They are heading in the right direction and keeping an eye on it but until that deob is well below 1bn I won't entertain this as an investment especially after seeing how debts have desteoyed companies like gkp etc

[mccracken227] 16/3/2023 08:16

My bet is this will be kept under 30 now

[crazi] 16/3/2023 08:10

Oil'ies look to be on the bounce today - so I'm back in to Tullow... fingers crossed