Tullow - comment

We had expected receipt of the $40m Kenya asset sale proceeds by end-June 2026. The earlier-than-expected receipt of $36m, with the remaining $4m due by end-March 2026, does not change our overall credit view on Tullow Oil.

The company also noted that its pre-financing free cash flow guidance of $150–180m was based on a $65/bbl oil price. On realised prices year-to-date and assuming $100/bbl for the remainder of FY26, this guidance would roughly double. In the short term, we see limited credit relevance in highlighting this upside, given that c.90% of bondholders have already acceded to the Lock-Up Agreement extending maturities by 30 months. But it’s worth keeping an eye on.