Tullow Oil

LSE:TLW

Snowflake Description

Moderate growth potential with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

TLW

LSE

£3B

Market Cap

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Last updated 2019/05/21 20:46

Company description

Tullow Oil plc engages in the oil and gas exploration, development, and production activities primarily in Africa and South America. The last earnings update was 81 days ago. More info.

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TLW Share Price and Events

7 Day Returns

5.7%

LSE:TLW

3.3%

GB Oil and Gas

1.5%

GB Market

1 Year Returns

-15.6%

LSE:TLW

2.2%

GB Oil and Gas

-6.3%

GB Market

TLW Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Tullow Oil (TLW)	5.7%	-4.8%	-0.5%	-15.6%	-4.8%	-72.8%
GB Oil and Gas	3.3%	-1.9%	5%	2.2%	49.9%	-10.3%
GB Market	1.5%	-2.1%	1.8%	-6.3%	15.4%	2%

1 Year Return vs Industry and Market

TLW underperformed the Oil and Gas industry which returned 2.2% over the past year.
TLW underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.3% over the past year.

Price Volatility

TLW

Industry

5yr Volatility vs Market

Related Companies

Value

Is Tullow Oil undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Tullow Oil to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tullow Oil.

LSE:TLW Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 14 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	11.2%
Perpetual Growth Rate	10-Year GB Government Bond Rate	1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:TLW
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year GB Govt Bond Rate	1.2%
Equity Risk Premium	S&P Global	6.7%
Oil and Gas Unlevered Beta	Simply Wall St/ S&P Global	0.92
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.915 (1 + (1- 19%) (112.34%))	1.501
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1.5
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 1.23% + (1.501 * 6.65%)	11.21%

Discounted Cash Flow Calculation for LSE:TLW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tullow Oil is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:TLW DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (USD, Millions)	Source	Present Value Discounted (@ 11.21%)
2019	628.84	Analyst x7	565.46
2020	607.74	Analyst x7	491.40
2021	493.40	Analyst x3	358.74
2022	614.67	Analyst x3	401.86
2023	455.00	Analyst x1	267.49
2024	436.89	Est @ -3.98%	230.95
2025	426.32	Est @ -2.42%	202.65
2026	420.67	Est @ -1.32%	179.81
2027	418.32	Est @ -0.56%	160.78
2028	418.22	Est @ -0.02%	144.54
Present value of next 10 years cash flows			$3,003.70

LSE:TLW DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = $418.22 × (1 + 1.23%) ÷ (11.21% – 1.23%)	$4,241.08
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = $4,241.08 ÷ (1 + 11.21%)¹⁰	$1,465.79

LSE:TLW Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = $3,003.70 + $1,465.79	$4,469.49
Equity Value per Share (USD)	= Total value / Shares Outstanding = $4,469.49 / 1,402.49	$3.19

LSE:TLW Discount to Share Price
	Calculation	Result
Exchange Rate	USD/GBP (Reporting currency to currency of LSE:TLW)	0.784
Value per Share (GBP)	= Value per Share in USD x Exchange Rate (USD/GBP) = $3.19 x 0.784	£2.5
Value per share (GBP)	From above.	£2.50
Current discount	Discount to share price of £2.30 = -1 x (£2.30 - £2.50) / £2.50	7.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Tullow Oil is available for.

Share price is £2.3 vs Future cash flow value of £2.5

Current Discount Checks

For Tullow Oil to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Tullow Oil's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Tullow Oil's share price is below the future cash flow value, but not at a substantial discount (< 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tullow Oil's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Tullow Oil's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

LSE:TLW PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in USD	$0.06
LSE:TLW Share Price **	LSE (2019-05-21) in GBP	£2.3
LSE:TLW Share Price converted to USD reporting currency	Exchange rate (GBP/ USD) 1.276	$2.94
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PE Ratio	Median Figure of 32 Publicly-Listed Oil and Gas Companies	9.19x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio	Median Figure of 789 Publicly-Listed Companies	16.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tullow Oil.

LSE:TLW PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= LSE:TLW Share Price ÷ EPS (both in USD) = 2.94 ÷ 0.06	48.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Tullow Oil is overvalued based on earnings compared to the GB Oil and Gas industry average.
Tullow Oil is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.

Price based on expected Growth

Does Tullow Oil's expected growth come at a high price?

Raw Data

LSE:TLW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	48.22x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts	21.5%per year
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PEG Ratio	Median Figure of 20 Publicly-Listed Oil and Gas Companies	0.71x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio	Median Figure of 575 Publicly-Listed Companies	1.5x

*Line of best fit is calculated by linear regression .

LSE:TLW PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 48.22x ÷ 21.5%	2.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Tullow Oil is poor value based on expected growth next year.

Price based on value of assets

What value do investors place on Tullow Oil's assets?

Raw Data

LSE:TLW PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in USD	$2.08
LSE:TLW Share Price *	LSE (2019-05-21) in GBP	£2.3
LSE:TLW Share Price converted to USD reporting currency	Exchange rate (GBP/ USD) 1.276	$2.94
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PB Ratio	Median Figure of 102 Publicly-Listed Oil and Gas Companies	0.81x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio	Median Figure of 1,368 Publicly-Listed Companies	1.5x

LSE:TLW PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= LSE:TLW Share Price ÷ Book Value per Share (both in USD) = 2.94 ÷ 2.08	1.42x

* Primary Listing of Tullow Oil.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Tullow Oil is overvalued based on assets compared to the GB Oil and Gas industry average.

Value checks

We assess Tullow Oil's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

How is Tullow Oil expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

21.5%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Tullow Oil expected to grow at an attractive rate?

Tullow Oil's earnings growth is expected to exceed the low risk savings rate of 1.2%.

Growth vs Market Checks

Tullow Oil's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Tullow Oil's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Annual Growth Rates Comparison

Raw Data

LSE:TLW Future Growth Rates Data Sources
Data Point	Source	Value (per year)
LSE:TLW Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts	21.5%
LSE:TLW Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts	3.1%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Earnings Growth Rate	Market Cap Weighted Average	11.9%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Revenue Growth Rate	Market Cap Weighted Average	3.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate	Market Cap Weighted Average	11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate	Market Cap Weighted Average	5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

LSE:TLW Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (4 months ago)	See Below
Future Estimates	Average of up to 14 Analyst Estimates (S&P Global)	See Below

All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

LSE:TLW Future Estimates Data
Date (Data in USD Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2023-12-31	2,323	1,368	564	4
2022-12-31	2,193	1,401	396	4
2021-12-31	2,065	1,331	363	11
2020-12-31	2,103	1,396	331	13
2019-12-31	2,115	1,380	331	14

LSE:TLW Past Financials Data
Date (Data in USD Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	1,859	1,204	85
2018-09-30	1,850	1,342	155
2018-06-30	1,840	1,480	212
2018-03-31	1,781	1,352	11
2017-12-31	1,723	1,223	-176
2017-09-30	1,620	1,019	-577
2017-06-30	1,517	816	-977
2017-03-31	1,393	664	-789
2016-12-31	1,270	513	-600
2016-09-30	1,299	660	-769
2016-06-30	1,328	807	-937
2016-03-31	1,467	892	-986

*GAAP earnings excluding extraordinary items.

High Growth Checks

Tullow Oil's earnings are expected to grow significantly at over 20% yearly.
Tullow Oil's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

LSE:TLW Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (4 months ago)	See Below
Future Estimates	Average of up to 14 Analyst Estimates (S&P Global)	See Below

All data from Tullow Oil Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:TLW Future Estimates Data
Date (Data in USD Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2023-12-31	0.28	0.40	0.11	3.00
2022-12-31	0.28	0.40	0.14	3.00
2021-12-31	0.26	0.40	0.15	9.00
2020-12-31	0.24	0.35	0.14	10.00
2019-12-31	0.22	0.35	0.14	10.00

LSE:TLW Past Financials Data
Date (Data in USD Millions)	EPS *
2018-12-31	0.06
2018-09-30	0.11
2018-06-30	0.16
2018-03-31	0.01
2017-12-31	-0.14
2017-09-30	-0.43
2017-06-30	-0.91
2017-03-31	-0.64
2016-12-31	-0.66
2016-09-30
2016-06-30	-1.03
2016-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Tullow Oil is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).

Show me more growth companies in the Oil and Gas industry

Future performance checks

We assess Tullow Oil's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tullow Oil has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

How has Tullow Oil performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Tullow Oil's growth in the last year to its industry (Oil and Gas).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Tullow Oil has delivered over 20% year on year earnings growth in the past 5 years.
Tullow Oil has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
Tullow Oil has become profitable in the last year making it difficult to compare the GB Oil and Gas industry average.

Earnings and Revenue History

Tullow Oil's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Tullow Oil Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:TLW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	1,859.20	84.80	91.60
2018-09-30	1,849.65	155.05	97.25
2018-06-30	1,840.10	212.10	102.90
2018-03-31	1,781.30	11.30	98.30
2017-12-31	1,722.50	-176.30	93.70
2017-09-30	1,619.65	-576.80	96.70
2017-06-30	1,516.80	-977.30	99.70
2017-03-31	1,393.35	-788.60	108.30
2016-12-31	1,269.90	-599.90	116.90
2016-09-30	1,298.75	-768.55	136.50
2016-06-30	1,327.60	-937.20	156.10
2016-03-31	1,467.10	-986.00	171.90
2015-12-31	1,606.60	-1,034.80	187.70
2015-09-30	1,687.25	-1,291.55	180.05
2015-06-30	1,767.90	-1,548.30	172.40
2015-03-31	1,990.40	-1,552.00	182.40
2014-12-31	2,212.90	-1,555.70	192.40
2014-09-30	2,388.70	-877.10	221.15
2014-06-30	2,564.50	-198.50	249.90
2014-03-31	2,605.70	-14.75	234.20
2013-12-31	2,646.90	169.00	218.50
2013-09-30	2,585.40	269.65	201.45
2013-06-30	2,523.90	370.30	184.40
2013-03-31	2,434.00	497.30	187.80
2012-12-31	2,344.10	624.30	191.20
2012-09-30	2,376.55	745.60	236.55
2012-06-30	2,409.00	866.90	281.90

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Tullow Oil has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Tullow Oil used its assets less efficiently than the GB Oil and Gas industry average last year based on Return on Assets.
Tullow Oil has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).

Past performance checks

We assess Tullow Oil's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tullow Oil has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

How is Tullow Oil's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tullow Oil's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Tullow Oil is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Tullow Oil's long term commitments exceed its cash and other short term assets.

Balance sheet

This treemap shows a more detailed breakdown of Tullow Oil's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.5x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Tullow Oil Company Filings, last reported 4 months ago.

LSE:TLW Past Debt and Equity Data
Date (Data in USD Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	2,893.20	4,631.30	179.80
2018-09-30	2,893.20	4,631.30	179.80
2018-06-30	2,584.30	4,943.10	393.40
2018-03-31	2,584.30	4,943.10	393.40
2017-12-31	2,716.40	5,152.00	284.00
2017-09-30	2,716.40	5,152.00	284.00
2017-06-30	2,704.00	4,091.20	318.40
2017-03-31	2,704.00	4,091.20	318.40
2016-12-31	2,242.50	5,007.40	281.90
2016-09-30	2,242.50	5,007.40	281.90
2016-06-30	2,925.20	5,016.90	303.70
2016-03-31	2,925.20	5,016.90	303.70
2015-12-31	3,174.70	4,366.30	355.70
2015-09-30	3,174.70	4,366.30	355.70
2015-06-30	3,781.50	4,035.10	488.10
2015-03-31	3,781.50	4,035.10	488.10
2014-12-31	4,020.30	3,373.30	319.00
2014-09-30	4,020.30	3,373.30	319.00
2014-06-30	5,248.70	3,144.50	410.90
2014-03-31	5,248.70	3,144.50	410.90
2013-12-31	5,446.40	2,189.50	352.90
2013-09-30	5,446.40	2,189.50	352.90
2013-06-30	5,520.30	2,180.60	560.20
2013-03-31	5,520.30	2,180.60	560.20
2012-12-31	5,321.60	1,208.10	330.20
2012-09-30	5,321.60	1,208.10	330.20
2012-06-30	5,251.30	1,045.80	417.30

Tullow Oil's level of debt (160.1%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has increased over the past 5 years (40.4% vs 160.1% today).
Debt is well covered by operating cash flow (26%, greater than 20% of total debt).
Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x coverage).

Financial health checks

We assess Tullow Oil's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

Dividends

What is Tullow Oil's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

1.63%

Current annual income from Tullow Oil dividends. Estimated to be 2.7% next year.

If you bought £2,000 of Tullow Oil shares you are expected to receive £33 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Tullow Oil's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2%).
Tullow Oil's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.27%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

LSE:TLW Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 14 Analyst Estimates (S&P Global)	See Below
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Average Dividend Yield	Market Cap Weighted Average of 13 Stocks	5.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield	Market Cap Weighted Average of 705 Stocks	4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield	10th Percentile	1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield	25th Percentile	2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield	75th Percentile	5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:TLW Future Dividends Estimate Data
Date (Data in $)	Dividend per Share (annual)	Avg. No. Analysts
2023-12-31	0.07	3.00
2022-12-31	0.07	3.00
2021-12-31	0.08	13.00
2020-12-31	0.08	15.00
2019-12-31	0.07	13.00

LSE:TLW Past Annualized Dividends Data
Date (Data in $)	Dividend per share (annual)	Avg. Yield (%)
2019-03-07	0.048	1.595
2016-03-15	0.000	0.000
2016-02-10	0.000	0.000
2015-07-29	0.000	0.000
2015-02-11	0.000	0.000
2014-07-30	0.180	2.413
2014-02-12	0.198	1.468
2013-07-31	0.182	1.285
2013-02-13	0.178	1.092
2012-03-14	0.184	0.877
2011-03-09	0.092	0.453
2010-03-10	0.086	0.486

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Tullow Oil has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
Tullow Oil has only been paying a dividend for 9 years, and since then dividends per share have fallen.

Current Payout to shareholders

What portion of Tullow Oil's earnings are paid to the shareholders as a dividend.

Dividends paid are covered by earnings (1.3x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).

Income/ dividend checks

We assess Tullow Oil's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Tullow Oil afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

Management

What is the CEO of Tullow Oil's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Paul McDade

COMPENSATION	$2,759,684
AGE	55
TENURE AS CEO	2.1 years

CEO Bio

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 Oil Plc from 2004 to April 26, 2017. He served as General Manager of Tullow Oil UK at Tullow Oil Plc since April 2004 and served as its Technical Director and Director of Operations for UK since June 2001. He joined Tullow in 2001. He is an Engineer with over 20 years' experience and worked in various operational, commercial and management roles with Conoco, Lasmo and ERC. He has broad international experience having worked in the UK North Sea, Latin America, Africa and South East Asia. Mr. McDade holds degrees in Civil Engineering and Petroleum Engineering.

CEO Compensation

Paul's compensation has increased in line with Tullow Oil recently becoming profitable.
Paul's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Management Team Tenure

Average tenure and age of the Tullow Oil management team in years:

2.3

Average Tenure

55.5

Average Age

The tenure for the Tullow Oil management team is about average.

19.3 yrs

Executive Vice President of East Africa

Board of Directors Tenure

Average tenure and age of the Tullow Oil board of directors in years:

2.1

Average Tenure

Average Age

The average tenure for the Tullow Oil board of directors is less than 3 years, this suggests a new board.

2.1 yrs

Sheila Khama

TITLE

Non-Executive Director

TENURE

0.1 yrs

Genevieve Sangudi

TITLE

Non-Executive Director

AGE

41

TENURE

0.1 yrs

Who owns this company?

Recent Insider Trading

More shares have been bought than sold by Tullow Oil insiders in the past 3 months, but not in substantial volumes.

Show me more companies with insider buying in the Oil and Gas industry

Recent Insider Transactions

Announced	Type	Name	Entity	Role		Start	End	Shares	Max Price (£)	Value (£)
07. Mar 19	Buy	Angus McCoss	Individual			06. Mar 19	06. Mar 19	8,550	£2.31	£19,731

Management checks

We assess Tullow Oil's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Share Price Volatility Should You Expect For Tullow Oil plc (LON:TLW)?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St - 3 weeks ago – Full article

Is Tullow Oil plc's (LON:TLW) PE Ratio A Signal To Buy For Investors?

Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … Breaking down the P/E ratio

Simply Wall St - 9 months ago – Full article

Does Tullow Oil plc's (LON:TLW) Debt Level Pose A Problem?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Tullow Oil plc (LON:TLW), with a market cap of US$3.48b, are often out of the spotlight. … Don’t forget that this is a general and concentrated examination of Tullow Oil’s financial health, so you should conduct further analysis. … Check out our latest analysis for Tullow Oil

Simply Wall St - 10 months ago – Full article

Tullow Oil plc's (LON:TLW) Profit Outlook

I’ve put together a brief outline of industry analyst expectations for TLW, its year of breakeven and its implied growth rate. … Working backwards from analyst estimates, it turns out that they expect the company to grow 36.15% year-on-year, on average, which is extremely buoyant. … LSE:TLW Past Future Earnings Jun 3rd 18 Underlying developments driving TLW’s growth isn’t the focus of this broad overview, however, keep in mind that generally an oil and gas business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating.

Simply Wall St - 11 months ago – Full article

Should You Have Tullow Oil plc's (LON:TLW) In Your Portfolio?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Any stock with a beta of greater than one is considered more volatile than the market, and those with a beta less than one is generally less volatile. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.