Tullow Oil plc

Tullow did not state revenue or EPS in this transcript. Les Wood said 2021 free cash flow generation continued, net debt was down about 10%, gearing was approaching 2 times, and year-end liquidity headroom was around $900 million, including an undrawn $500 million corporate facility and almost $400 million of cash on the balance sheet. Rahul Dhir said Jubilee production increased from about 70,000 barrels a day at the start of the year to 90,000 barrels a day at year-end. For 2022, management kept free cash flow guidance at $100 million at $75 per barrel, and said that at $95 per barrel for the balance of the year, free cash flow would be close to $200 million, subject to year-end working capital. Les also said $75 million of Uganda FID payment was received in February, and that after completing the Ghana pre-emption, upside exposure rises to around 45%.

Rahul Dhir framed 2021 as a year of transformation, emphasizing that the company now has a clearer path to visible growth and value creation. He repeatedly stressed operational discipline, saying every barrel matters and every dollar counts, and pointed to a deep inventory of high-return opportunities across producing assets. His tone was confident and constructive, while also noting volatility in the oil industry and the importance of a resilient operating model.

Les Wood focused on balance-sheet repair, liquidity, and disciplined capital allocation. He said the refinancing left Tullow with no near-term debt maturities, supported by $1 billion of self-help, and that net debt fell about 10% with gearing approaching 2 times. He highlighted around $900 million of liquidity headroom, including a $500 million undrawn facility and almost $400 million of cash, and said the company’s 2022 hedge structure provides good downside protection while preserving upside; realized price after hedging was around $89 per barrel in January and February, which generated about $70 million of incremental cash flow. He reiterated free cash flow guidance of $100 million at $75 per barrel, and close to $200 million at $95 per barrel for the rest of 2022.

Analysts focused on hedge protection, the timing of a second rig, the Ghana pre-emption, Kenya partner timing, and the size of the gas opportunity. Management said the hedge book is structured with collars rather than straight puts going forward, with roughly 40% downside protection rising to about 45% after the Ghana pre-emption, and that pre-emption barrels do not require separate hedging under the debt structure. On Ghana gas, Rahul said the current plant bottleneck is 130 million scuffs a day, but the company sees a path to about 240 million scuffs a day with additional processing capacity, while incremental CapEx would be minimal aside from some non-associated gas wells. On Kenya, he said the government FDP approval and a strategic partner for FID must converge, with election timing a wildcard.