Tullow Oil (TUWOY) AI Stock Analysis

• Market Cap: $264.62M
• Dividend Yield: N/A
• Average Volume (3M): 80.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -30.93%
• EPS Growth: -1375.93%
• Country: US
• Employees: 397
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.02
• Shares Outstanding: 2,950,046,100
• 10 Day Avg. Volume: 113,422
• 30 Day Avg. Volume: 80,148
• PEG Ratio: -0.04
• Price to Book (P/B): -1.23
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 0.63
• Enterprise Value/Market Cap: 9.64
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 5.32
• Enterprise Value/Ebitda: 3.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.05 ▲(53.33% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

Tullow Oil's stock score is primarily impacted by its challenging financial performance, with high leverage and negative equity posing significant risks. Technical analysis further indicates bearish momentum, and poor valuation metrics reflect investor caution. Strategic improvements are necessary for future stability.

Positive Factors

Strong cash generation

Tullow'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 margins

Sustained 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 franchise

A 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.

Negative Factors

Negative equity & leverage

Negative shareholders' equity and high leverage create significant refinancing, covenant and solvency risks. Persistent negative equity limits access to capital markets, constrains strategic flexibility and raises the likelihood of asset sales or restructuring to restore balance sheet health over the medium term.

Declining revenue

Recent revenue decline reduces scale and earnings power, pressuring the top line and limiting internal funding for development or debt reduction. Continued top-line erosion would magnify fixed-cost burdens and constrain the company's ability to improve leverage within a 2–6 month horizon.

Earnings volatility

Severely negative EPS growth and a low net profit margin (3.56%) reflect volatile earnings and slim net returns after costs and finance charges. This earnings instability limits retained earnings accumulation and makes future cash flow and deleveraging forecasts less reliable.

Tullow Oil Business Overview & Revenue Model

Company Description

Tullow Oil plc is a leading independent oil and gas exploration and production company, primarily operating in Africa and South America. The company focuses on discovering and developing oil and gas resources in regions with significant potential, leveraging its technical expertise and experience. Tullow's core operations include exploration, appraisal, and production activities, with a portfolio that encompasses both onshore and offshore assets. The company is committed to sustainable development and aims to create value for stakeholders through responsible resource management.

How the Company Makes Money

Tullow Oil generates revenue primarily through the sale of crude oil and natural gas produced from its exploration and production activities. The company operates a portfolio of producing fields and development projects, which contribute to its key revenue streams. Significant partnerships with governments, joint ventures, and strategic alliances facilitate access to resources and markets, enhancing the company's operational capabilities. Additionally, Tullow benefits from varying oil prices, as its revenue is largely tied to global market dynamics. Effective cost management and operational efficiencies also play a crucial role in maximizing profitability and sustaining cash flow.

Tullow Oil Financial Statement Overview

Summary

Tullow Oil's financial performance is mixed. Strong operational efficiency and cash conversion are offset by declining revenue, high leverage, and negative equity. These factors pose significant financial risks.

Income Statement

Tullow Oil's recent income statement reflects mixed results. The gross profit margin for 2024 stands at a healthy 49.12%, indicating solid cost management. However, the net profit margin is low at 3.56%, and revenue has declined by 6.07% compared to the previous year, reflecting industry challenges. The EBIT margin improved to 38.80%, showing operational efficiency gains, while EBITDA margin is robust at 72.19%. Overall, profitability metrics are mixed, with some strengths in operational efficiency but weaknesses in revenue growth and net income.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity of -$272.7 million, resulting in an undefined debt-to-equity ratio. Return on equity cannot be determined due to negative equity. The equity ratio is negative, indicating liabilities exceed assets, a potential risk for financial stability. The company's high debt level poses financial risks, although cash reserves provide some liquidity cushion.

Cash Flow

Tullow Oil's cash flow statement shows a strong operating cash flow to net income ratio of 13.89, indicating good cash generation relative to net income. Free cash flow is solid at $534 million, though it declined by 8.53% from the previous year. The free cash flow to net income ratio is notably high at 9.78, demonstrating strong cash conversion. While cash flow generation is a strength, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.19B	1.53B	1.63B	1.78B	1.29B	1.40B
Gross Profit	480.08M	754.00M	790.80M	1.09B	654.40M	402.50M
EBITDA	644.11M	1.11B	862.10M	1.20B	949.90M	-492.00M
Net Income	-200.68M	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	363.60M	534.00M	583.70M	771.40M	550.40M	267.70M
Operating Cash Flow	508.92M	758.50M	876.20M	1.08B	786.90M	698.60M
Investing Cash Flow	-166.38M	-213.10M	-268.50M	-356.20M	-101.70M	84.30M
Financing Cash Flow	-321.52M	-492.20M	-742.50M	-552.80M	-1.03B	-271.70M

Tullow Oil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TUWOY, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.05, and below the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.64 is Neutral, neither overbought nor oversold. The STOCH value of 82.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TUWOY.

Tullow Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
REI	60 Neutral	$322.47M	-5.17	-4.10%	―	-15.44%	-113.21%
GTE	57 Neutral	$277.80M	―	-60.13%	―	-1.58%	-271.90%
TBN	57 Neutral	$701.82M	-13.76	-13.73%	―	―	―
AMPY	52 Neutral	$246.90M	-2.53	-6.90%	―	-9.46%	-144.89%
TUWOY	41 Neutral	$264.62M	-0.82	―	―	-30.93%	-1375.93%