Tullow Oil Reduces Upper End of 2023 Output Outlook

West Africa-focused Tullow Oil on Wednesday reduced the upper end of its production outlook for this year to 58,000-60,000 barrels per day (bpd) from 58,000-64,000 bpd.

The reduction was because of lower than expected production from its Jubilee field in the first half of the year and timing of the start-up of the Jubilee South East extension in the second half, the company said, adding that Jubilee currently produces more than 100,000 bpd.

Reporting first-half results, Tullow said adjusted earnings before interest, tax, depreciation, amortization and exploration expense stood at $1.17 billion, down from $1.28 billion a year earlier.

Tullow reiterated its guidance on full-year free cash flow of $100 million at an oil price of $80 a barrel LCOc1, its net debt outlook of $1.7 billion by year-end, and investment budget of $400 million.

Tullow's shares have lost as much as 29% in the past 12 months. Its market capitalization stood at $671 million on Tuesday.

The company said it has a range of options "to address debt maturities and position the business for a successful refinancing".  

Tullow hedged about 34,500 bpd of its second half output between average prices of $56 and $75 a barrel and 22,700 bpd of its first-half 2024 output between $56 and $76 a barrel. 

(Reuters - Reporting by Shadia Nasralla/Editing by Jason Neely and David Goodman)

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