Tullow Oil (TLW)

Sector:

Energy Producers

Index:

FTSE Small Cap

23.74p
   
  • Change Today:
    -0.52p
  • 52 Week High: 39.48p
  • 52 Week Low: 21.38p
  • Currency: UK Pounds
  • Shares Issued: 1,458.26m
  • Volume: 4,482,943
  • Market Cap: £346.19m
  • RiskGrade: 365

Canaccord drops Tullow Oil to 'speculative buy'

By Iain Gilbert

Date: Thursday 14 Nov 2019

LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity lowered their rating on Tullow Oil from 'buy' to 'speculative buy' on Thursday following a disappointing trading update from the firm in the previous session.
Canaccord said lower-than-expected Ghana production, leading to a 2019 production guidance downgrade, crude oil analysis that showed surprisingly heavy and sour oil in the firm's two Guyana discoveries, continued stasis in its Uganda farm-out/development and slowing net debt reduction due to lower production and oil prices all combined to make yesterday's trading update "a significant disappointment".

"These all present considerable and varied head-scratching challenges for the company at a time when E&Ps face a range of external investment headwinds," said Canaccord, which also dropped its price target on the company from 270p to 220p.

The Canadian broker said Guyana was the biggest surprise of the update, with the analysis of crude from the Jethro and Joe discoveries in the Orinduik block showing the oil in both was heavy and had a relatively high sulphur content.

"This heavy sour crude is quite different to Exxon's light sweet crude in the Liza field, and raises the risks about future exploration on the licence and its commercial value," said the analysts.

Nevertheless, Canaccord acknowledged that Tullow did find movable oil in two different age plays and generally good quality/thick sandstone reservoirs.

"That is still a good start to the exploration of the area, though clearly not the home run that it appeared immediately post drilling."

In addition to substantially increasing the risks associated with Tullow's Guyana operations, Canaccord also projected lower but flatter production in Ghana and slowed its development timetable for the group's Kenyan development project.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Tullow Oil Market Data

Currency UK Pounds
Share Price 23.74p
Change Today -0.52p
% Change -2.14 %
52 Week High 39.48p
52 Week Low 21.38p
Volume 4,482,943
Shares Issued 1,458.26m
Market Cap £346.19m
RiskGrade 365

Tullow Oil Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
13.13% above the market average13.13% above the market average13.13% above the market average13.13% above the market average13.13% above the market average
63.89% below the sector average63.89% below the sector average63.89% below the sector average63.89% below the sector average63.89% below the sector average
Price Trend
70.04% below the market average70.04% below the market average70.04% below the market average70.04% below the market average70.04% below the market average
28.21% below the sector average28.21% below the sector average28.21% below the sector average28.21% below the sector average28.21% below the sector average
Income Not Available
Growth
94.70% above the market average94.70% above the market average94.70% above the market average94.70% above the market average94.70% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 4
Buy 4
Neutral 1
Sell 1
Strong Sell 1
Total 11
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Tullow Oil Dividends

  Latest Previous
  Interim Final
Ex-Div 29-Aug-19 04-Apr-19
Paid 04-Oct-19 10-May-19
Amount 2.35¢ 4.80¢

Trades for 31-Oct-2024

Time Volume / Share Price
16:35 865,900 @ 23.74p
16:35 1,667 @ 23.74p
16:35 3,484 @ 23.74p
16:35 643 @ 23.74p
16:35 2,613 @ 23.74p

Tullow Oil Key Personnel

CFO Richard Miller

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