Tullow Oil trades higher on lower net debt, strengthened funding position

20th Feb 2026 10:15

(Sharecast News) - Exploration firm Tullow Oil traded higher on Friday after it reported a further reduction in net debt and confirmed a refinancing package that strengthens its balance sheet ahead of a key investment period.

Tullow said working‑interest production averaged 40,4000 barrels of oil equivalent in 2025, generating around $847m of revenue at a realised oil price of $67.8 per barrel.

Free cash flow came in at roughly $100m, held back by delays to Ghana receivables and the Kenya disposal instalment, as well as softer year‑end revenue.

Tullow ended the year with $322m of free cash and net debt reduced to $1.35bn.

Independently audited 2P reserves were 100.4mmboe, valued at about $1.3bn.

Capital expenditure for 2025 totalled $166m, with a further $17m spent on decommissioning. Government receivables in Ghana stood at around $225m at year‑end.

For FY26, Tullow forecast production of 34,000-42,000 boepd, with capex expected to rise to $200m and decommissioning to $25m. At an oil price of $65 a barrel, Tullow also said it expects to generate $150m-$180m of pre‑financing cash flow.

As of 1015 GMT, Tullow shares were up 7.81% at 11.32p.

Reporting by Iain Gilbert at Sharecast.com