Oil and gas producer Tullow Oil has reduced its annual capex budget by another $100 million, to $1 billion, and could cut spending further as it adjusts its balance sheet to weak oil prices.
The Africa-focused company also said its lenders had agreed to amend terms on its $3.5 billion Reserve Based Lending (RBL), showing banks were willing to continue to support oil companies during the market downturn.
Tullow reiterated that it would have to reduce its annual production forecast, without a material impact on cash flow, due to an ongoing technical issue that has shut its flagship Jubilee oil field in Ghana. It said the field would resume production in the coming days.
Recommended Reading
Exxon, Chevron Tapping Permian for Output Growth in ‘24
2024-02-02 - Exxon Mobil and Chevron plan to tap West Texas and New Mexico for oil and gas production growth in 2024, the U.S. majors reported in their latest earnings.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.
The One Where EOG’s Stock Tanked
2024-02-23 - A rare earnings miss pushed the wildcatter’s stock down as much as 6%, while larger and smaller peers’ share prices were mostly unchanged. One analyst asked if EOG is like Narcissus.
Permian E&P Midway Energy Partners Secures Backing from Post Oak
2024-02-09 - Midway Energy Partners will look to acquire and exploit opportunities in the Permian Basin with backing from Post Oak Energy Capital.