Tullow Oil Upgrades Free Cash Flow Guidance Following Strong First-Half Operations

Tullow Oil reported a significant operational turnaround and upgraded its full-year free cash flow expectations to between $170 million and $250 million, supported by robust oil production and strong commodity prices.

In its 2026 Half Year Results released on Monday, the independent oil and gas exploration group posted a total revenue of $496 million for the six months ending June 30, up from $411 million in 1H 2025. Gross profit surged to $276 million from $165 million over the same period, benefiting from an average realised oil price of $95.0 per barrel before hedging ($86.3/bbl after hedging).

Group working interest production reached 43.7 thousand barrels of oil equivalent per day (kboepd), up from 40.6 kboepd in 1H 2025. Tullow expects full-year production to land at the higher end of its 34–42 kboepd guidance range.

Despite operational strength, the company recorded a net loss after tax of $101 million for the half-year, heavily influenced by one-off refinancing transaction costs totaling $70 million. However, net debt narrowed to $1.4 billion (down from $1.6 billion in mid-2025), reducing cash gearing to 1.9x net debt/EBITDAX.

“We have delivered outstanding operational performance in the first half of 2026 and expect production for the year to be at the top end of guidance,” said Ian Perks, Chief Executive Officer of Tullow Oil. “Supported by our strengthened financial position, disciplined capital allocation, and a supportive oil price environment, we are increasingly confident in our ability to unlock the full value of our assets and deliver material cash flow.”

Tullow also reported a 380% reserves replacement ratio in the first half, boosting proven and probable (2P) reserves to 121.7 million barrels of oil equivalent (mmboe).