Tullow Oil backs full-year production outlook, sees upside to FCF view
Tullow Oil PLC on Wednesday said it has made a strong start to 2026, with production year-to-date supporting full-year guidance.
The London-based oil and gas company said its drilling campaign in Ghana continues to progress well with encouraging results to date reinforcing growing confidence in delivering production at the higher end of the guidance range.
Group production from January to May was 43,100 barrels of oil equivalent per day, above the previously announced 2026 range of 34,000 to 42,000 boepd, it said.
‘Tullow has performed strongly since the outset of 2026, marked by significant delivery across the business,’ said Chief Executive Ian Perks.
Shares in Tullow Oil rose 8.1% to 15.90 pence each in London on Wednesday.
The drill schedule for 2026 remains unchanged, with the third of six Jubilee wells expected on-stream this week. The remaining two producer wells are expected on-stream in June and July, with the final well due on-stream in September.
Free cash flow guidance remains at $70 million to $175 million assuming oil prices of $70 to $100 per barrel. This range is expected to grow to $110 million to $230 million if an additional cargo can be delivered in December. Free cash flow in 2025 totalled $99 million.
Group capital expenditure and decommissioning spend guidance for 2026 remains unchanged at $200 million and $25 million.
‘With group production at the higher end of guidance and our significant leverage to the oil price, including year to date realisations ahead of expectations, we remain well placed to generate significant free cash flow in 2026 and beyond,’ said CEO Perks.
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