Tullow Oil Lowers Upper Limit of Production Guidance in 2018

By Oliver Griffin

Tullow Oil PLC (TLW.LN) on Thursday lowered the upper limit of its total production guidance for 2018 after narrowing its forecast oil production range but said strong oil prices have helped boost its free cash flow.

The oil and gas company said it expects average daily production for the year to be between 89,300-93,300 barrels of oil equivalent a day, down from its previous guidance of 89,000-95,000 barrels a day.

Tullow said all of its fields were producing in line with expectations and narrowed its oil production guidance to a range of 87,000-91,000 barrels a day, compared with previous forecasts of 86,000-92,000 barrels.

The company cut its working-interest gas production forecast to an average of 2,300 barrels of oil equivalent a day, compared with 3,000 barrels a day previously.

Tullow said it expects free cash flow in 2018 of around $700 million, subject to year-end working capital movements, and said net debt at the end of the year is expected to fall to around $2.8 billion, from $3.5 billion at the start of the year.

Write to Oliver Griffin at [e-mail]; @OliGGriffin

(END) Dow Jones Newswires

November 15, 2018 04:04 ET (09:04 GMT)

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