Why Is Tullow Oil plc Up on 11 Nov 2026?

Tullow Oil plc shares rose 10.98% on 11 Nov 2026, with LSE:TLW among the leading risers in the FTSE on the day. The move follows the company's 2026 half-year results, published on 28 September 2026, which reported higher production and improved cash generation.

Group working interest production averaged 43.7 thousand barrels of oil equivalent per day in the first half, compared with 40.6 thousand a year earlier, and the company expects full-year output at the top end of its 34-42 thousand guidance range.

Free Cash Flow guidance for 2026 has also been upgraded to between US$170 million and US$250 million.

About Tullow Oil plc

Tullow Oil plc is an independent oil and gas company with its main operations in Ghana. Its portfolio includes interests in the Jubilee and TEN fields, which are produced through floating production, storage and offloading vessels.

The company is led by Chief Executive Ian Perks. For LSE:TLW, Ghana provides the core of production, cash flow and the long-term asset base.

Production and Operational Performance

FPSO uptime exceeded 99% in the first half, and the 2025-26 drilling campaign was completed in September with six Jubilee producers and one water injector brought onstream.

Ghana net oil production was 35.7 thousand barrels per day, with Jubilee contributing 27.6 thousand net and TEN 8.1 thousand net.

Improved Financials

Revenue rose to US$496 million from US$411 million, and Gross Profit increased to US$276 million from US$165 million. The realised oil price before hedging was US$95.0 per barrel.

Free cash flow turned positive at US$4 million, an improvement of about US$192 million, even after US$64 million of cash interest and US$70 million of one-off refinancing costs.

Reserves and Licence Extensions

2P reserves rose to 121.7 million barrels of oil equivalent from 100.2 million at the end of 2025, a reserve replacement of around 380%.

The West Cape Three Points and Deep Water Tano petroleum agreements now run to 2040, and gas Supply terms from Jubilee also run to 2040.

Balance Sheet and Capital Plans

Net Debt fell to US$1.4 billion from US$1.6 billion, and cash gearing improved to 1.9 times net debt to EBITDAX from 2.1 times. Liquidity headroom increased to US$0.3 billion.

Tullow signed an agreement in February 2026 to acquire the TEN FPSO for a net consideration of about US$126 million, with completion expected at the end of the first quarter of 2027.

Business Overview and Financial Performance

Tullow's H1 2026 Revenue of US$496 million and gross profit of US$276 million reflected a realised oil price of US$95.0 per barrel before hedging, compared with US$71.4 a year earlier.

Capital expenditure was US$134 million, net general and administrative costs fell to US$16 million from US$23 million and the company recovered US$73 million of gas receivables from the Government of Ghana.

Strategy and Priorities

Tullow's priorities are to maximise production from Jubilee and TEN, strengthen the Balance Sheet and extend field life. The 2025-26 campaign has been completed, and rig arrangements are in place for up to ten wells in the 2027-28 programme.

Guidance for 2026 includes Capital Expenditure of about US$200 million, decommissioning spend of about US$15 million and 14 cargoes.

Portfolio Changes

Tullow exited its Côte d'Ivoire licence on 24 July 2026, with PETROCI taking over operations, which sharpens the portfolio around Ghana.

The company also completed the termination of Kenyan Royalty payments and a back-in right, bringing an additional US$9 million of proceeds.

Understanding the Update

EBITDAX stands for Earnings before interest, tax, depreciation, Amortisation and exploration expenses, and the ratio of net debt to EBITDAX is a common measure of how comfortably an oil company can service its borrowings.

Tullow's improvement to 1.9 times from 2.1 times shows the balance sheet moving in the right direction.

Key Factors to Monitor

Investors may watch oil price trends, the timing of cargoes, TEN infill drilling, the Jubilee multiphase pump project and completion of the TEN FPSO acquisition.

The 2027-28 drilling campaign is also expected to begin with a rig arriving around mid-2027.

Conclusion

Tullow Oil plc's 10.98% advance on 11 Nov 2026 follows a half-year update showing higher production, positive free cash flow and a larger reserves base.

With licences extended to 2040, net debt lower and full-year production guided to the top end of its range, LSE:TLW has several constructive developments to follow. Cargo timing, drilling progress and the FPSO Acquisition are the next items to watch.