Tullow Oil Share Discussion Threads

[xxnjr] 17/4/2023 22:08

Ah! sorry mis-read your earlier post mcs. Getting back to 64p would require a miracle on TEN (unlikely), the new JSE wells to average >9k a well for a year (who knows?) and the oil price to be closer to $100 (who knows).

Whatever happens, debt will increase this 1st half which is a bit of a worry.

[mcsean2164] 17/4/2023 21:03

Dorothy took over in December 2019.



Share price was 64p then.... Amazing only a couple of months before it was £2.05. The company has been destroyed.

[bones698] 17/4/2023 17:48

Debt is and still remains the biggest risk here and they have failed to being it down enough while oil prices were high .
Simple calculation is what would the assets sell for now . I doubt it would cover the debts be a use of the fall off and constant costs to keep production at reasonable levels .

They wrongly riled the dice on lifting production wasting hundreds of millions that could have gone towards debts .

Picked the wrong plays and exited the ones that they should have kept . Can't see any positive news from what they have left really .
If and when oil prices start to drift lower the shareprice will fall with them and then the real trouble starts here as servicing debt becomes a much bigger issue .

[xxnjr] 17/4/2023 12:33

Yes.100%.

Only saying that as share price was 31p on the day Rahul started!

[mcsean2164] 17/4/2023 12:12

Here we go, another day. I wonder will we ever get back to pre Dorothy valuation?

[subsurface] 16/4/2023 13:19

Ghana news

Africa Finance Corporation acquires Aker Energy ahead of development of the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana

African bank becomes 100% shareholder of Aker Energy, operator of the Pecan project offshore Ghana

[waldron] 12/4/2023 17:31

Jamie Ashcroft

14:41 Wed 12 Apr 2023


Tullow Oil production target at risk says Jefferies


Tullow Oil Plc's (LSE:TLW) Jubilee field’s production rate of 100,000 barrels of oil per day is “not a forgone conclusion”, that’s according to Jefferies, which in a note pointed out that the firm’s Jubilee field has only ever managed that feat twice (in 2014 and 2015).

Jefferies today downgraded its rating on Tullow to ‘underperform’ from ‘hold’, and, cut its price target to 25p from 40p.

Jubilee reaching 100,000 bopd is dependent upon a programme of five new wells due to come online this year.

“Even if TLW does produce to such levels- and we are inline to TLW's 2023 group production guidance of 58,000 to 64,000 boe/d - we estimate the company's cash breakeven as one of the highest in the sector,” Jefferies analysts said in a note.

Free cashflow guidance is pitched at US$200mln based on US$100 oil which would drop to US$100mln at US$80, the broker noted, meanwhile, it also notes that Tullow is involved in a US$707mln tax dispute with Ghana which could take years to resolve through arbitration.

“In valuation terms, we apply only core net asset value (NAV), and we lower our EV/EBITDA multiple by 0.75x to 1.75x to reflect a level more on par with UK North sea peers, for whom, even with EPL [windfall tax] offset, experience more material free cashflow & deleveraging.”

In London, Tullow shares were trading down 1.24p or 3.8% on Wednesday changing hands at 31.12p each.

Proactive

[alfiex] 12/4/2023 15:17

Oil up 2$ and we are sinking, what a dog!

[xxnjr] 12/4/2023 12:27

Never a good idea to over promise on future production potential then fail to deliver which has tended to characterise Rahul's tenure so far.

(And I thought Dhir was quite irresponsible to suggest on last results webcast that the company was out of the woods now. It really depends on how the new JSE wells actually perform.)

[badger36] 12/4/2023 12:14

Any wonder Capricorn walkedWay beyond a vote of no confidence and a necessity to oust the dross and fat cats who have done nothing but destroyed and vestiges of competence

[crazi] 12/4/2023 11:34

* Tullow Oil Plc : Jefferies cuts to underperform from hold

[alfiex] 12/4/2023 10:46

Yes me too and nothing on horizon to lift it

[kulvinder] 12/4/2023 10:34

Yes seems this share will never get out the doldrums, should have existed at 52p at the time of the merger.

[chalkie78] 12/4/2023 10:27

Yes...frustrating

[adrian j boris] 12/4/2023 10:09

Jefferies cuts Tullow Oil to 'underperform' (hold) - price target 25 (40) pence

[michelle74] 12/4/2023 09:49

Think we just need some good news

[badger36] 12/4/2023 09:40

Jeffries are nothing but HG Wainwright in drag. Two of the worst street hustlers

[kulvinder] 12/4/2023 09:33

Jeffries downgrade to 25p from 40p previously, amazing when we get a higher target has no effect on share price...

[michelle74] 12/4/2023 08:26

What's happening

[sue999] 12/4/2023 08:18

Why is this dropping..

[1224saj] 06/4/2023 20:01

Roll on AGM

[badger36] 06/4/2023 14:13

Problem is they unacceptable and are ruining it as a private slush fund Big notions from yesterday still permeate with concomitant pay rates as if it was the "giant" it once pretended to be on borrowed money