Tullow Oil Releases 2024 Full Year Results 2025 Outlook

2024 FULL YEAR RESULTS

• Group working interest oil and gas production averaged 61.2 kboepd (2023: 62.7 kboepd).
• Revenue of $1,535 million (2023: $1,634 million), including $74 million hedge costs (2023: $139 million).
• Capital expenditure¹ of $231 million (2023: $380 million) and decommissioning expenditure including cash provisioning for future decommissioning of $60 million (2023: $67 million).
• Adjusted EBITDAX¹ of $1,152 million (2023: $1,151 million); gross profit of $754 million (2023: $765 million); profit after tax of $55 million (2023: loss of $110 million), including exploration costs writen off of $213 million (2023: $27 million).
• Free cash flow¹ (FCF) of $156 million (2023: $170 million).
• Net debt¹ at year end reduced to $1,452 million (2023: $1,608 million); cash gearing of net debt¹ to adjusted EBITDAX¹ of 1.3 times (2023: 1.4 times); liquidity headroom of $715 million (2023: $1,000 million).
• Audited 2P reserves at year end 2024 of 164.5 mmboe (2023: 212.2 mmboe), valued at $2.5 billion (NPV10), with the reserves reduction including 22.4 mmboe of Group production.
• Successful extension of the $250 million Revolving Credit Facility (RCF) to 30 June 2025.
• Successful resolution of the Ghana Branch Profits Remittance Tax (BPRT) arbitration, which removed a potential $320 million liability and endorses the sanctity of our Petroleum Agreements.
• Five new Jubilee wells (three producers and two water injectors) brought onstream, bringing the drill programme to an end approximately six months ahead of schedule with no recordable safety incidents, and saving over $88 million (gross) compared to the initial budget.
• Average FPSO uptime at Jubilee and TEN of 97%.
• Decommissioning activities in Mauritania accelerated and completed in 2024, ahead of schedule and below budget.
• Significant milestone reached with the Ghana Forestry Commission to implement a nature-based carbon offset programme

2025 OUTLOOK and GUIDANCE

• Tullow has signed a binding heads of terms agreement with Gabon Oil Company for the sale of Tullow Oil Gabon SA, for a cash consideration of $300 million net of tax. Entering into the full sale and purchase agreement is targeted for the second quarter of 2025, with completion of the transaction expected around the middle of the year, subject to relevant governmental and regulatory approvals.
• Group working interest production expected to average 50 to 55 kboepd as previously announced, including c.6 kboepd of gas.
• Ghana drilling programme with Noble Venturer to commence in May 2025, with two Jubilee wells (one producer and one water injector) expected to come onstream in the third quarter of 2025.
• Completed 4D seismic survey in first quarter of 2025 to support future well locations and drive reserves growth.
• Capital expenditure of c.$250 million, allocated as follows: c.$160 million in Ghana, c.$70 million across the west African non-operated portfolio, c.$5 million in Kenya and c.$15 million of exploration expenditure.
• Decommissioning spend of c.$15 million for UK; c.$15 million cash provisioning for Ghana and Gabon.
• Further cost base optimisation underway, with expected c.$10 million saving reducing annual cash net G&A to c.$40 million.
• Cash taxes expected to be c.$150-200 million at $70-80/bbl with payments weighted c.60% to the first half of the year.
• Forecast free cash flow of c.$100-200 million at $70-80/bbl, including c.$50 million of overdue gas receipts in Ghana from 2024.
• Refinancing of the Group’s capital structure targeted during 2025, following repayment of the 2025 Notes in early March 2025.

Richard Miller, Interim Chief Executive Officer and Chief Financial Officer, Tullow Oil plc, commented:

“In 2024 we had a number of succeses but also some operational challenges, most notably with Jubilee production and a reserves revision, however there is now strong momentum within the business with a return to drilling at Jubilee, and the commencement of production optimisation and reserves maturation activities in Ghana. In addition a number of key achievements have recently been realised, including the resolution of the Ghana Branch Profits Remittance Tax arbitration which eliminated a material overhang, the repayment of our 2025 senior notes and as announced on 24 March, the signed binding heads of terms for the sale of our Gabonese assets for a cash consideration of $300 million. This will accelerate our deleveraging progress this year.

“I am clear on the levers required to unlock Tullow’s full potential. The team remains fully focused on our near-term priorities; advancing our refinancing plan, reducing costs, optimising production activities at Jubilee and TEN, and driving reserve growth. We will continue to maintain our financial discipline and prioritise investments that add value and deliver high returns.

“Tullow’s core strength as a trusted partner with a cash generative business and attractive assets with reserves growth opportunities positions us well as we lay the foundations for value creation.”