Tullow Oil (LON: TLW), the London- and Ghana-listed oil producer, reported first-half production tracking to the top of guidance today, but its shares fell 1.16% in early trading. The Ghana-focused explorer’s H1 2026 results showed output and reserves both strengthening even as the stock dipped.
Shares changed hands at 21.30p by mid-morning, down from Friday’s close of 21.55p, having swung between 20.35p and 22.05p. That sits well up on the 52-week low of 3.51p and just below the 52-week high of 25.00p.
Tullow’s results showed working interest production averaging 43.7 thousand barrels of oil equivalent a day, up from 40.6 kboepd a year earlier and tracking to the top of the 34-42 kboepd guidance range. 2P reserves, which oil and gas engineers class as proven and probable, jumped to 121.7 million barrels of oil equivalent from 100.2 mmboe, a reserves replacement ratio of roughly 380%. Tullow has also signed a rig contract covering up to ten wells for its 2027-28 Ghana drilling campaign.
That strength fed into the balance sheet. Net debt fell to $1.4bn from $1.6bn, with gearing, the ratio of net debt to cash earnings, easing to 1.9x from 2.1x. Free cash flow, cash left after costs and capital spending, turned positive at $4m against an outflow of $188m a year earlier, helped by a realised oil price of $95.0 a barrel before hedging versus $71.4. Revenue rose to $496m from $411m, though a $127m tax charge left a $101m loss after tax.
| Metric | H1 2025 | H1 2026 |
|---|---|---|
| Production (kboepd) | 40.6 | 43.7 |
| Net debt ($bn) | 1.6 | 1.4 |
| 2P reserves (mmboe) | 100.2 | 121.7 |
| Free cash flow ($m) | -188 | 4 |
Chief executive Ian Perks called it a strong operational half.
We have delivered outstanding operational performance in the first half of 2026 and expect production for the year to be at the top end of guidance. With realised oil prices before hedging of $95/bbl, we have significantly upgraded free cash flow expectations.
Ian Perks, Chief Executive Officer, Tullow Oil plc
Much of that strength had already been flagged in a June trading update and an August guidance upgrade, explaining why shares fell on a results day that confirmed rather than surprised. Tullow will not pay an interim dividend, and full-year free cash flow guidance was reiterated at $170m-$250m, assuming oil prices of $70-100 a barrel.