West Africa-focused oil producer Tullow plans to hedge around 60% of its output one year out, it said on June 12, reiterating it expects its 2023 free cashflow to come in at $100 million at an oil price of $80/bbl.
In March, CFO Richard Miller told Reuters the company planned to hedge around 40% to 50% of its output for the next 12 months.
"Commodity hedging policy (is) reinstated to ensure 60% downside protection for the first year ahead, and 30% for the second year, whilst maintaining full upside exposure for no less than 60%," Tullow said in a trading statement.
Tullow's hedges for this and next year currently stand between $55 and $75 a barrel and it forecasts full-year production to average between 58,000 bbl/d and 64,000 bbl/d with a planned ramp-up of its Jubilee South East wells offshore Ghana in the second half.
Recommended Reading
How Diversified Already Surpassed its 2030 Emissions Goals
2024-04-12 - Through Diversified Energy’s “aggressive” voluntary leak detection and repair program, the company has already hit its 2030 emission goal and is en route to 2040 targets, the company says.
BKV CEO Chris Kalnin says ‘Forgotten’ Barnett Ripe for Refracs
2024-04-02 - The Barnett Shale is “ripe for fracs” and offers opportunities to boost natural gas production to historic levels, BKV Corp. CEO and Founder Chris Kalnin said at the DUG GAS+ Conference and Expo.