Tullow Oil ups full-year free cash flow guidance, postpones Capital Markets Day

Tullow Oil upped its forecast for full-year free cash flows, adding that it was on track to lower gearing to below 1.5 times operating profits by year end.

The oil exploration outfit also narrowed its guidance for production in 2022 to between from 60-64,000 barrels of oil equivalent per day to 61-6k boepd, saying that its producing assets continued "to perform well".

Free cash flow was now seen reaching approximately $250m by year-end, subject to working capital requirements.

That new target also assumed an average oil price of $95 per barrel for November and December.

A reduction in estimated full-year capital investment and decommissioning expenditure to about $360m and $80m, thanks to deferred activity and cost control, were credited for the improved free cash flow guidance.

Tullow also announced the postponement of its Capital Markets Update until 2023, with an exact date yet to be confirmed, as "a number of the Group's strategic and operational initiatives remain ongoing and are expected to evolve throughout the coming months."