These full-year results from
Group net production rose by a sliver to 79,200 barrels of oil-equivalent per day (boepd) from 78,200 boepd in 2011, which was slightly below guidance because of the enforced shutdown of non-operated gas production in the UK following a third-party safety incident. But, importantly, the company's flagship Jubilee field offshore Ghana is now producing around 110,000 barrels of oil per day (bopd) gross, up from an average of just 66,000 bopd in 2011 following a cost-effective remediation program last year. Tullow expects the field to finally reach its plateau production rate of 120,000 bopd by year-end 2013. Overall, group net production is forecast to be in the range of 86,000 to 92,000 boepd this year.
Barclays estimates EPS of 78¢ in 2013, up from 68.8¢ in 2012.
|TULLOW OIL (TLW)|
|ORD PRICE:||1,234p||MARKET VALUE:||£11.2bn|
|TOUCH:||1233-1235p||12-MONTH HIGH:||1,611p||LOW: 1098p|
|DIVIDEND YIELD:||1.0%||PE RATIO:||28|
|NET ASSET VALUE:||576¢*||NET DEBT:||19%|
|Year to 31 Dec||Turnover ($m)||Pre-tax profit ($bn)||Earnings per share (p)||Dividend per share (p)|
Ex-div: 17 Apr
Payment: 16 May
*Includes intangible assets of $3.0bn, or 328¢ a share
Having made yet another major basin-opening discovery in 2012 - this time onshore Kenya - Tullow has planned an active 40-well exploration and appraisal drilling program for 2013. But how much more can Tullow do? The shares trade on 25 times forward earnings estimates leaving little room for significant further upside in this difficult market. Hold.
Last IC view: Hold, 1,323p, 25 Jul 2012