Tullow Oil, a prominent U.K. oil-and-gas company, has announced its optimistic production outlook for the year 2023. The company anticipates surpassing its previous guidance and achieving an overall increase in output this year.
Impressive 2022 Production Figures
In 2022, Tullow Oil recorded an average working interest production of approximately 63,000 oil-equivalent barrels per day. This figure exceeded the company’s guided range of 58,000 to 60,000 barrels and marked an improvement from the previous year’s production of 61,100 barrels per day.
Revenue Expectations and Cash Flow Projections
Although Tullow Oil expects a slight dip in revenue from the previous year, with an estimated figure of $1.6 billion compared to $1.78 billion in the previous year, the company remains positive about its underlying operating cash flow. Tullow Oil anticipates generating approximately $800 million in operating cash flow and around $170 million in free cash flow, surpassing the guided range of $100 million.
Promising Outlook for 2024
Looking ahead to 2024, Tullow Oil forecasts an average working interest production range of 62,000 to 68,000 barrels of oil equivalent per day. This projection is partly attributed to the commencement of production from five wells at its Jubilee operations in Ghana. Additionally, the company expects to allocate approximately $250 million in capital expenditure for the year, a decrease from the $380 million spent in 2023. Tullow Oil projects free cash flow to range from $200 million to $300 million.