Tullow Oil H1 net debt $4.7 billionStaff writer ▼ | June 30, 2016
Tullow Oil plc provided results for the financial half year to June 30, 2016. The group’s 2016 capital expenditure guidance remains at $1 billion with further savings being offset by additional capex.
Tullow Oil The hedging strategy remains unchanged
The group’s hedging strategy remains unchanged; ensuring a percentage of production entitlement volumes are hedged on a three-year look forward basis.
Having temporarily suspended the execution of this strategy in the fourth quarter 2015, it was resumed in April 2016.
In April, Tullow successfully completed its routine six-monthly Reserve Based Lending (RBL) redetermination process, securing available debt capacity of $3.5 billion.
The first amortisation of the RBL is scheduled in October 2016, when commitments will reduce to $3.25 billion. The company currently plans to refinance the RBL before any further amortisation in 2017.
The group also agreed a twelve month extension to the maturity of the corporate facility to April 2018.
The corporate facility commitments remain at $1 billion until April 2017, when commitments reduce to $800 million with an accordion feature for an additional amount of $200 million. ■