Tullow - comment

Tullow released its annual report this morning and at first glance, there is nothing additional to their already released FY22 numbers. It is interesting to note that they clearly state that as prt of the CFO’s remit is to review its capital structure which may include retiring or purchasing outstanding debt in the open market. As part of the notes to the accounts, it also highlights the ability to buy back not just the 2026 Senior Notes but also the 2025 (Sub) Notes. Separately, the report highlights that capital allowances have been fully utilised during FY22, and cash taxes will increase to $300m in FY23 @ 80/bbl from $229m in prior year. This Is higher than we had expected and we have made the small adjustment in our model.