Strong Cash GenerationTullow's operating cash flow far exceeds net income (ratio 13.89) and free cash flow of $534m provides a durable internal funding source. This cash conversion supports capex, debt service or selective asset activity, improving liquidity and operational continuity over the medium term.
High Operating MarginsSustained high gross and EBITDA margins indicate efficient field operations and relatively low unit operating costs. Robust per-barrel economics give the business resilience to commodity volatility and support the ability to fund maintenance and targeted developments over several months ahead.
Focused Upstream FranchiseA clear, focused upstream business model centered on African exploration, development and production gives Tullow structural advantages: regional expertise, operating relationships and an established production base that underpin medium-term resource development and partnerability.