Tullow keeps 2023 forecast for low cash flow, declining shares | – #Tullow #forecast #cash #flow #declining #shares
March 8 (Reuters) – Tullow Oil ( TLW.L ) on Wednesday reported higher free cash flow for 2022, but maintained its outlook for flat production and lower cash flow for this year, sending shares lower.
400 million this year, mainly to its advanced fields in Ghana dollars plans to invest, the price of a barrel of oil of free cash flow from 80 dollars 10to $0 million or per barrel unchanged from previous guidance 10It expects to double from $0.
Free cash flow for 2022 was $267 million, up from $245 million in 2021 and in line with forecasts.
Some tax running out of concessions, higher investments and declining production elsewhere compensation with new wells to start only in the second half, chief financial officer Richard Miller said on a conference call that cash flow would be negative in the first half before strengthening later.
Shares of Tullow Europe oil and gas The flat index for companies (.SXEP) was down about 2.3% at 1142 GMT at 33.5 pence.
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Jefferies analyst Mark Wilson said in an email that he expects Tullow’s total production to remain only flat, despite the start of new production in the second half of the year.
It is also for 2023 100 million dollars 80 of cash flow dollars/barrel, considering that oil prices are already at the level of 83 dollars/barrel, as the reason for the weakening of the share price.
Overall, Tullow expects to produce between 58,000 and 64,000 bpd this year, after 61,000 bpd in 2022.
The company plans to hedge 40% to 50% of production within about a year, Miller told Reuters.
Tullow has hedged 33,100 barrels of this year’s output and 11,300 barrels of 2024 output at between $55 and $75 a barrel. Last year, its revenue would have been $319 million higher without the hedges.
Reporting by Shadia Nasrallah, additional reporting by Muhammad Hussain in Bangalore; Edited by Louise Heavens and Mark Potter
Our standards: Thomson Reuters Trust Principles.
Shadia Nasralla
2023-03-08 18:16:42
Source – reuters
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