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
NextEra Energy, GE Vernova Partner to Bolster US Grid
2025-01-27 - The CEO of NextEra Energy, which has entered a partnership with GE Vernova, said natural gas, renewables and nuclear energy will be needed to meet rising power demand.
NatGas Shouldering Powergen Burden, but Midstream Lags, Execs Warn
2025-02-14 - Expand Energy COO Josh Viets said society wants the reliability of natural gas, but Liberty Energy CEO Ron Gusek said midstream projects need to catch up to meet demand during a discussion at NAPE.
LNG, Crude Markets and Tariffs Muddy Analysts’ 2025 Outlooks
2024-12-12 - Energy demand is forecast to grow as data centers gobble up more electricity and LNG liquefaction capacity comes online in North America, but gasoline demand may peak by 2025, analysts say.
DOE: ‘Astounding’ US LNG Growth Will Raise Prices, GHG Emissions
2024-12-17 - The Biden administration released Dec. 17 a long-awaited report analyzing the effects of new LNG export projects, which was swiftly criticized by the energy industry.
Expand CFO: ‘Durable’ LNG, Not AI, to Drive US NatGas Demand
2025-02-14 - About three-quarters of future U.S. gas demand growth will be fueled by LNG exports, while data centers’ needs will be more muted, according to Expand Energy CFO Mohit Singh.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.