In Tullow Oil 's (TLW) last set of financial results in February, we identified three reasons for optimism in 2016: excellent hedging, a decline in capital expenditure, and an eventual uptick in low-cost production from the long-awaited TEN fields, offshore Ghana.
IC TIP:
Hold
at
204p
That's still a fitting summary of Tullow's current position, although weak oil prices, falling production and further funding requirements since February have left a slightly more stretched financial position. Following the issue of a $300m (£229m) convertible bond after the half-year point, net debt is now around $5bn, more than five times JPMorgan's forecast earnings before interest, tax and depreciation.