Tullow Oil (LSE:TLW) reported group working interest production of 43.7 kboepd for the first half of 2026 and raised its full-year free cash flow expectations following production performance from its Ghana operations.
Revenue reached $496 million, based on realised oil prices of $95 per barrel before hedging, while gross profit was $276 million.
The company generated modestly positive free cash flow during the period. Tullow nevertheless reported a net loss, which included one-off fees associated with its refinancing activities.
Ghana Production Supports Full-Year Guidance
Tullow reported high operational uptime in Ghana, with production from the Jubilee and TEN fields exceeding its previous expectations.
The company now expects 2026 production to be at the upper end of its existing guidance range.
Tullow also increased its full-year free cash flow forecast to between $170 million and $250 million.
The group is preparing a drilling programme covering 2027 and 2028 and is progressing plans to acquire the TEN FPSO.
2P Reserves Increase to 121.7 Million Barrels of Oil Equivalent
Tullow reported an increase in 2P reserves to 121.7 million barrels of oil equivalent, with a reserves replacement ratio of more than 380%.
The company attributed the increase to factors including drilling results, licence extensions and well performance.
Licence extensions covering the company’s Ghana operations have been ratified through 2040.
Tullow is also progressing subsea pump projects, development drilling, well interventions and gas monetisation initiatives as it seeks to convert additional resources at Jubilee and TEN into reserves.
Net Debt Reduced to $1.4 Billion
Tullow reported net debt of $1.4 billion, while gearing declined to 1.9 times net debt to EBITDAX.
The company also recovered historical gas receivables from the Government of Ghana during the period.
Management said the debt reduction and receipt of the outstanding gas payments increased the group’s liquidity headroom as it continues investment across its Ghana operations.
About Tullow Oil
Tullow Oil is an independent oil and gas exploration and production company focused primarily on offshore assets in West Africa.
Its portfolio includes the Jubilee and TEN fields in Ghana, with activities spanning oil production, development drilling, gas monetisation and infrastructure-led exploration around its existing operations.
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