Tullow Oil
Market Cap
UK£642.0m
Last Updated
2019/12/10 20:39 UTC
Data Sources
Company Financials +
Executive Summary
Tullow Oil plc engages in the oil and gas exploration, development, and production activities primarily in Africa and South America.
Rewards
Risk Analysis
+ 2 more risks
Snowflake Analysis
Undervalued average dividend payer.
Similar Companies
Share Price & News
How has Tullow Oil's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TLW's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-65.7%
TLW
1.0%
GB Oil and Gas
0.9%
GB Market
1 Year Return
-75.4%
TLW
0.7%
GB Oil and Gas
8.7%
GB Market
Return vs Industry: TLW underperformed the UK Oil and Gas industry which returned 0.7% over the past year.
Return vs Market: TLW underperformed the UK Market which returned 8.7% over the past year.
Shareholder returns
| TLW | Industry | Market | |
|---|---|---|---|
| 7 Day | -65.7% | 1.0% | 0.9% |
| 30 Day | -78.1% | -6.6% | -0.5% |
| 90 Day | -80.0% | -2.8% | 0.9% |
| 1 Year | -74.9%-75.4% | 5.9%0.7% | 14.3%8.7% |
| 3 Year | -82.8%-85.7% | 20.7%5.3% | 18.8%3.6% |
| 5 Year | -85.6%-88.0% | 69.5%36.7% | 42.6%9.9% |
Price Volatility Vs. Market
How volatile is Tullow Oil's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Does Tullow Oil (LON:TLW) Have A Healthy Balance Sheet?3 weeks ago | Simply Wall St
What Is Tullow Oil's (LON:TLW) P/E Ratio After Its Share Price Tanked?1 month ago | Simply Wall St
Is Tullow Oil plc (LON:TLW) Investing Your Capital Efficiently?Valuation
Is Tullow Oil undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TLW (£0.46) is trading below our estimate of fair value (£1.09)
Significantly Below Fair Value: TLW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TLW is good value based on its PE Ratio (6.3x) compared to the Oil and Gas industry average (6.8x).
PE vs Market: TLW is good value based on its PE Ratio (6.3x) compared to the UK market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: TLW is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: TLW is good value based on its PB Ratio (0.3x) compared to the GB Oil and Gas industry average (0.8x).
Next Steps
Future Growth
How is Tullow Oil forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
4.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TLW's forecast earnings growth (4.9% per year) is above the savings rate (0.5%).
Earnings vs Market: TLW's earnings (4.9% per year) are forecast to grow slower than the UK market (12.4% per year).
High Growth Earnings: TLW's earnings are forecast to grow, but not significantly.
Revenue vs Market: TLW's revenue is expected to decline over the next 3 years (-3.2% per year).
High Growth Revenue: TLW's revenue is forecast to decline over the next 3 years (-3.2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TLW's Return on Equity is forecast to be low in 3 years time (7.3%).
Next Steps
Past Performance
How has Tullow Oil performed over the past 5 years?
44.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TLW has a large one-off gain of $156.5M impacting its June 30 2019 financial results.
Growing Profit Margin: TLW's current net profit margins (7.3%) are lower than last year (12.2%).
Past Earnings Growth Analysis
Earnings Trend: TLW has become profitable over the past 5 years, growing earnings by 44.1% per year.
Accelerating Growth: TLW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TLW had negative earnings growth (-40.5%) over the past year, making it difficult to compare to the Oil and Gas industry average (24.7%).
Return on Equity
High ROE: TLW's Return on Equity (4.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Tullow Oil's financial position?
Financial Position Analysis
Short Term Liabilities: TLW's short term assets ($2.8B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: TLW's short term assets ($2.8B) do not cover its long term liabilities ($6.4B).
Debt to Equity History and Analysis
Debt Level: TLW's debt to equity ratio (116.9%) is considered high.
Reducing Debt: TLW's debt to equity ratio has increased from 59.5% to 116.9% over the past 5 years.
Debt Coverage: TLW's debt is well covered by operating cash flow (31.7%).
Interest Coverage: TLW's interest payments on its debt are not well covered by EBIT (1.9x coverage).
Balance Sheet
Inventory Level: TLW has a high level of physical assets or inventory.
Debt Coverage by Assets: TLW's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Tullow Oil's current dividend yield, its reliability and sustainability?
7.98%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TLW's dividend (7.98%) is higher than the bottom 25% of dividend payers in the UK market (1.95%).
High Dividend: TLW's dividend (7.98%) is in the top 25% of dividend payers in the UK market (5.19%)
Stability and Growth of Payments
Stable Dividend: TLW's dividend payments have been volatile in the past 10 years.
Growing Dividend: TLW's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (50%), TLW's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TLW's dividends in 3 years are forecast to be well covered by earnings (33.8% payout ratio).
Next Steps
Management
What is the CEO of Tullow Oil's salary, the management and board of directors tenure and is there insider trading?
2.9yrs
Average management tenure
CEO
Paul McDade (56yo)
2.7yrs
Tenure
US$2,759,684
Compensation
Mr. Paul McDade has been the Chief Executive Officer of Tullow Oil Plc since April 26, 2017 and as its Executive Director since March 29, 2006. Mr. McDade served as the Chief Operating Officer of Tullow Oi ...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD3.64M) is above average for companies of similar size in the UK market ($USD1.17M).
Compensation vs Earnings: Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
2.9yrs
Average Tenure
57yo
Average Age
Experienced Management: TLW's management team is considered experienced (2.9 years average tenure).
Board Age and Tenure
2.6yrs
Average Tenure
57yo
Average Age
Experienced Board: TLW's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: TLW insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Lead Director Senior Independent Director |
| Shares | 20,000 |
| Max Price | US$1.41 |
| Entity | Individual |
| Role | Member of the Board of Directors Exploration Director & Executive Director |
| Shares | 8,550 |
| Max Price | US$2.31 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.
Management Team
Brian Williams
Vice President of Corporate Finance
- Tenure: 19.9yrs
Paul McDade (56yo)
CEO & Executive Director
- Tenure: 2.7yrs
- Compensation: US$2.76m
Angus McCoss (57yo)
Exploration Director & Executive Director
- Tenure: 13yrs
- Compensation: US$1.56m
Chris Perry
Head of IR and VP of IR & Communications
- Tenure: 0yrs
Mark MacFarlane
Executive Vice President of East Africa
- Tenure: 0yrs
Sandy Stash (60yo)
Executive Vice President of Safety & Sustainability
- Tenure: 2.9yrs
Gary Thompson
Executive Vice President of West Africa
- Tenure: 2.9yrs
Claire Hawkings (49yo)
Executive VP of Organisation Strategy & Company Performance
- Tenure: 0yrs
Ian Cloke
Executive Vice President of New Ventures
- Tenure: 2.9yrs
Les Wood (57yo)
CFO & Executive Director
- Tenure: 2.5yrs
- Compensation: US$1.64m
Board Members
Jeremy Wilson (54yo)
Senior Independent Director
- Tenure: 2.7yrs
- Compensation: US$92.53k
Steve Lucas (64yo)
Non Executive Director
- Tenure: 7.8yrs
- Compensation: US$80.99k
Paul McDade (56yo)
CEO & Executive Director
- Tenure: 2.7yrs
- Compensation: US$2.76m
Martin Greenslade (54yo)
Non-Executive Director
- Tenure: 0.08yrs
Dorothy Thompson (58yo)
Independent Chairman of the Board
- Tenure: 1.4yrs
- Compensation: US$139.95k
Mike Daly (65yo)
Non-Executive Director
- Tenure: 5.5yrs
- Compensation: US$70.25k
Angus McCoss (57yo)
Exploration Director & Executive Director
- Tenure: 13yrs
- Compensation: US$1.56m
Genevieve Sangudi (42yo)
Non-Executive Director
- Tenure: 0.7yrs
Sheila Khama
Non-Executive Director
- Tenure: 0.7yrs
Les Wood (57yo)
CFO & Executive Director
- Tenure: 2.5yrs
- Compensation: US$1.64m
Company Information
Tullow Oil plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Tullow Oil plc
- Ticker: TLW
- Exchange: LSE
- Founded: 1985
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: UK£641.963m
- Shares outstanding: 1.41b
- Website: https://www.tullowoil.com
Number of Employees
Location
- Tullow Oil plc
- 9 Chiswick Park
- 566 Chiswick High Road
- London
- Greater London
- W4 5XT
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TUWL.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| TLW | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| TQW | ISE (Irish Stock Exchange) | Yes | Ordinary Shares | IE | EUR | Jan 1992 |
| TQW | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| TLWL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| TUWO.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Dec 2009 | |
| TLW | GHSE (Ghana Stock Exchange) | GBP0.1 | GH | GHS | Jun 2019 |
Biography
Tullow Oil plc engages in the oil and gas exploration, development, and production activities primarily in Africa and South America. Its portfolio comprises 87 licenses covering 267,649 square kilometers i ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/10 20:39 |
| End of Day Share Price | 2019/12/10 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.