Tullow Oil (TLW) AI Stock Analysis

• Market Cap: £95.14M
• Dividend Yield: N/A
• Average Volume (3M): 5.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -32.47%
• EPS Growth: -1490.91%
• Country: UK
• Employees: 397
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.04
• Shares Outstanding: 1,475,023,100
• 10 Day Avg. Volume: 5,624,881
• 30 Day Avg. Volume: 5,904,496
• PEG Ratio: -0.05
• Price to Book (P/B): -1.45
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 0.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £20.47
• Price Target Upside: 205.98% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: 7.00p ▲(4.63% Upside)

Tullow Oil's overall stock score is primarily impacted by its financial performance challenges, particularly high leverage and negative equity. Technical analysis also indicates bearish trends. However, recent corporate events provide a positive outlook as the company takes steps to improve its financial stability and operational efficiency.

Positive Factors

Cash Generation

Strong operating cash flow indicates Tullow Oil's ability to generate cash from its core operations, which is crucial for funding investments and managing debt.

Gross Margin

A strong gross margin suggests efficient production processes and cost management, providing a buffer against market volatility and supporting long-term profitability.

Industry Expertise

Tullow Oil's expertise in challenging environments enhances its competitive position and ability to capitalize on new exploration opportunities, supporting sustainable growth.

Negative Factors

High Leverage

High leverage and negative equity pose significant financial risks, limiting Tullow Oil's flexibility to invest in growth opportunities and manage economic downturns.

Revenue Volatility

Inconsistent revenue growth reflects market and operational volatility, challenging Tullow Oil's ability to plan and invest strategically for the future.

Profitability Challenges

Low net profit margins indicate ongoing operational challenges and cost pressures, which could hinder Tullow Oil's ability to achieve sustainable profitability.

Tullow Oil Business Overview & Revenue Model

Company Description

Tullow Oil plc engages in the oil and gas exploration, development, and production activities primarily in Africa and South America. As of December 31, 2021, its portfolio comprised 30 licenses in 8 countries with 30 producing wells. The company was founded in 1985 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Tullow Oil generates revenue primarily through the production and sale of crude oil and natural gas. The company operates several oil fields where it extracts hydrocarbons, which are then sold to refineries and trading companies. Key revenue streams include revenue from production-sharing contracts, where Tullow shares a portion of its output with host governments in exchange for the right to operate oil fields. Additionally, Tullow may engage in partnerships and joint ventures with other oil companies, allowing for shared investment and risk in exploration and production activities. Factors contributing to Tullow's earnings include global oil prices, production efficiency, operational costs, and the successful development of new oil fields. The company also benefits from long-term contracts and relationships with various stakeholders in the oil industry.

Tullow Oil Financial Statement Overview

Summary

Tullow Oil shows strong cash flow generation but faces significant balance sheet risks due to high leverage and negative equity. The income statement indicates operational profitability challenges despite a healthy gross margin.

Income Statement

Tullow Oil's income statement shows fluctuating revenue and profitability. The gross profit margin for 2024 is approximately 49.1%, which is strong. However, the net profit margin is low at 3.6% due to significant expenses and interest burdens, reflecting operational challenges. Revenue growth has been inconsistent, indicating volatility in business operations and market conditions.

Balance Sheet

The balance sheet reveals high leverage with a negative equity position, indicating financial distress. The debt-to-equity ratio is not meaningful due to negative equity, and the return on equity cannot be calculated. The company's financial structure is concerning, with liabilities exceeding assets, posing significant risks.

Cash Flow

Cash flow analysis shows strong operating cash flow, indicating robust cash-generating capacity. The free cash flow to net income ratio is favorable, highlighting effective cash management despite profitability issues. However, the declining free cash flow growth rate suggests potential future challenges in maintaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	981.40M	1.53B	1.63B	1.78B	1.29B	1.40B
Gross Profit	381.35M	754.00M	790.80M	1.09B	646.50M	402.50M
EBITDA	656.85M	1.11B	860.20M	1.20B	930.80M	-492.80M
Net Income	-171.75M	54.60M	-109.60M	49.10M	-80.70M	-1.22B
Balance Sheet
Total Assets	3.61B	4.05B	4.46B	5.04B	5.54B	6.56B
Cash, Cash Equivalents and Short-Term Investments	187.50M	548.60M	499.00M	636.30M	469.10M	805.40M
Total Debt	2.47B	2.71B	2.99B	3.46B	3.73B	4.39B
Total Liabilities	3.93B	4.32B	4.82B	5.50B	6.01B	6.77B
Stockholders Equity	-329.70M	-272.70M	-359.40M	-459.50M	-466.10M	-210.00M
Cash Flow
Free Cash Flow	439.55M	534.00M	583.70M	771.40M	550.40M	267.70M
Operating Cash Flow	569.60M	758.50M	876.20M	1.08B	786.90M	698.60M
Investing Cash Flow	-107.15M	-213.10M	-268.50M	-356.20M	-101.70M	84.30M
Financing Cash Flow	-357.05M	-492.20M	-742.50M	-552.80M	-1.03B	-271.70M

Tullow Oil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TLW, the sentiment is Positive. The current price of 6.69 is above the 20-day moving average (MA) of 6.16, below the 50-day MA of 6.88, and below the 200-day MA of 11.70, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 63.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TLW.

Tullow Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AET	76 Outperform	£94.53M	3.79	42.05%	―	50.35%	48.07%
PHAR	66 Neutral	£84.98M	20.91	1.91%	6.46%	-9.43%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GENL	56 Neutral	£153.64M	-3.85	-11.54%	―	-0.20%	-25.68%
JSE	54 Neutral	£128.76M	8.54	56.01%	―	4.56%	―
TLW	53 Neutral	£95.14M	-0.62	―	―	-32.47%	-1490.91%
CNE	52 Neutral	£152.29M	-9.63	-6.29%	―	-32.66%	72.67%

Tullow Oil Corporate Events

Tullow Oil Announces CFO Share Vesting Under Employee Award Plan

Tullow Oil plc announced a transaction involving the vesting of 39,979 ordinary shares awarded to Richard Miller, the Chief Financial Officer, under the company’s 2014 Employee Share Award Plan. This transaction, conducted outside a trading venue, reflects the company’s ongoing commitment to its employee incentive programs, which could impact stakeholder perception and employee motivation.

The most recent analyst rating on (GB:TLW) stock is a Hold with a £7.00 price target. To see the full list of analyst forecasts on Tullow Oil stock, see the GB:TLW Stock Forecast page.

Tullow Oil Appoints New Chair Amid Board Restructuring

Tullow Oil has appointed Roald Goethe as the new independent non-executive Chair of the Board, effective December 1, 2025, following the resignation of Phuthuma Nhleko. Goethe brings extensive experience in the African energy sector and has been a long-term supporter of Tullow. The company is undergoing a Board reset, with several directors stepping down, which is expected to reduce costs and streamline operations. This leadership change is part of Tullow’s strategy to strengthen its position in the African oil and gas sector and advance plans to refinance its capital structure, aiming to deliver value for stakeholders.

The most recent analyst rating on (GB:TLW) stock is a Hold with a £5.00 price target. To see the full list of analyst forecasts on Tullow Oil stock, see the GB:TLW Stock Forecast page.

Tullow Oil Strengthens Financial Position with Strategic Asset Sales and Operational Focus

Tullow Oil has made significant strides in enhancing its financial stability and operational efficiency, particularly in Ghana, by selling its interests in Kenya and Gabon for a combined total of over $400 million. The company is focusing on optimizing production and managing natural decline in existing wells, while also planning new drilling activities. Tullow is addressing financial challenges by engaging with creditors and exploring refinancing options, aiming to maintain a sustainable financial footing. The company expects its 2025 production to be at the lower end of the forecasted range and is working to resolve outstanding receivables with the Government of Ghana.

The most recent analyst rating on (GB:TLW) stock is a Hold with a £8.50 price target. To see the full list of analyst forecasts on Tullow Oil stock, see the GB:TLW Stock Forecast page.

Tullow Oil Announces Total Voting Rights Update

Tullow Oil plc has announced its total voting rights as of October 31, 2025, with an issued share capital of 1,475,023,041 ordinary shares, all with voting rights. This information is crucial for shareholders to determine their interests in the company under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:TLW) stock is a Hold with a £8.00 price target. To see the full list of analyst forecasts on Tullow Oil stock, see the GB:TLW Stock Forecast page.