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Tullow Oil

LSE:TLW
Snowflake Description

Limited growth with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TLW
LSE
£3B
Market Cap
  1. Home
  2. GB
  3. Energy
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 25 days ago. More info.


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TLW Share Price and Events
7 Day Returns
13.1%
LSE:TLW
-2.6%
GB Oil and Gas
-1.7%
GB Market
1 Year Returns
-6.3%
LSE:TLW
-3.3%
GB Oil and Gas
-5.7%
GB Market
TLW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tullow Oil (TLW) 13.1% 1.5% -11.2% -6.3% -13.3% -71.3%
GB Oil and Gas -2.6% -6.4% -7.5% -3.3% 18.2% -11.9%
GB Market -1.7% -4.6% -3.2% -5.7% 4% 0.2%
1 Year Return vs Industry and Market
  • TLW underperformed the Oil and Gas industry which returned -3.3% over the past year.
  • TLW matched the United Kingdom of Great Britain and Northern Ireland Market (-5.7%) over the past year.
Price Volatility
TLW
Industry
5yr Volatility vs Market

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 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.9%
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 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.9 (1 + (1- 19%) (138.83%))
1.611
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.61
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.611 * 6.65%)
11.94%

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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

LSE:TLW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.94%)
2020 561.90 Analyst x11 501.97
2021 439.68 Analyst x5 350.89
2022 501.87 Analyst x3 357.79
2023 269.00 Analyst x2 171.32
2024 235.27 Est @ -12.54% 133.86
2025 215.48 Est @ -8.41% 109.52
2026 203.59 Est @ -5.52% 92.44
2027 196.48 Est @ -3.49% 79.70
2028 192.39 Est @ -2.08% 69.72
2029 190.30 Est @ -1.09% 61.60
Present value of next 10 years cash flows $1,928.80
LSE:TLW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $190.30 × (1 + 1.23%) ÷ (11.94% – 1.23%)
$1,798.19
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,798.19 ÷ (1 + 11.94%)10
$582.08
LSE:TLW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,928.80 + $582.08
$2,510.89
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,510.89 / 1,403.60
$1.79
LSE:TLW Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:TLW)
0.823
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $1.79 x 0.823
£1.47
Value per share (GBP) From above. £1.47
Current discount Discount to share price of £2.03
= -1 x (£2.03 - £1.47) / £1.47
-37.5%

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

  • The current share price of Tullow Oil is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 (2019-06-30) in USD $0.10
LSE:TLW Share Price ** LSE (2019-08-16) in GBP £2.03
LSE:TLW Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.215 $2.46
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PE Ratio Median Figure of 34 Publicly-Listed Oil and Gas Companies 8.18x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 793 Publicly-Listed Companies 15.83x

* 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)

= 2.46 ÷ 0.10

25.6x

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 25.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
14%per year
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PEG Ratio Median Figure of 18 Publicly-Listed Oil and Gas Companies 0.62x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 570 Publicly-Listed Companies 1.41x

*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

= 25.6x ÷ 14%

1.83x

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 (2019-06-30) in USD $2.00
LSE:TLW Share Price * LSE (2019-08-16) in GBP £2.03
LSE:TLW Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.215 $2.46
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry PB Ratio Median Figure of 102 Publicly-Listed Oil and Gas Companies 0.71x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,370 Publicly-Listed Companies 1.39x
LSE:TLW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:TLW Share Price ÷ Book Value per Share (both in USD)

= 2.46 ÷ 2.00

1.23x

* 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.
X
Value checks
We assess Tullow Oil's value by looking at:
  1. 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. )
  2. 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)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Tullow Oil has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    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 16 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!
Annual Growth Rate
14%
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 16 Analysts 14%
LSE:TLW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 0.6%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 7.6%
United Kingdom of Great Britain and Northern Ireland Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.1%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*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 (1 month ago) See Below
Future Estimates Average of up to 16 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 2,017 1,310 409 4
2022-12-31 2,061 1,323 455 4
2021-12-31 2,067 1,339 373 14
2020-12-31 2,102 1,375 346 16
2019-12-31 2,002 1,326 273 16
LSE:TLW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,826 1,042 134
2019-03-31 1,843 1,123 109
2018-12-31 1,859 1,204 85
2018-09-30 1,850 1,342 155
2018-06-30 1,840 1,480 225
2018-03-31 1,781 1,352 25
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tullow Oil's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
  • Tullow Oil's revenue is expected to grow by 0.6% 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 (1 month ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Tullow Oil Company Filings, last reported 1 month 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 0.27 0.40 0.10 3.00
2022-12-31 0.30 0.40 0.14 3.00
2021-12-31 0.27 0.45 0.10 12.00
2020-12-31 0.24 0.40 0.10 14.00
2019-12-31 0.17 0.27 0.09 14.00
LSE:TLW Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.10
2019-03-31 0.08
2018-12-31 0.06
2018-09-30 0.11
2018-06-30 0.16
2018-03-31 0.02
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

*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%).
X
Future performance checks
We assess Tullow Oil's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. 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)
  3. 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)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. 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 2/6, 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's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Tullow Oil's 1-year earnings growth is negative, it can't be compared to 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 1 month 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 R&D Expenses
2019-06-30 1,826.40 134.10 86.30
2019-03-31 1,842.80 109.45 88.95
2018-12-31 1,859.20 84.80 91.60
2018-09-30 1,849.65 155.05 97.25
2018-06-30 1,840.10 225.30 102.90
2018-03-31 1,781.30 24.50 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

*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).
X
Past performance checks
We assess Tullow Oil's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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 0.8x 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 1 month ago.

LSE:TLW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 2,811.50 3,285.40 362.30
2019-03-31 2,811.50 3,285.40 362.30
2018-12-31 2,893.20 3,219.10 179.80
2018-09-30 2,893.20 3,219.10 179.80
2018-06-30 2,584.30 3,475.30 393.40
2018-03-31 2,584.30 3,475.30 393.40
2017-12-31 2,716.40 3,606.40 284.00
2017-09-30 2,716.40 3,606.40 284.00
2017-06-30 2,704.00 4,065.50 318.40
2017-03-31 2,704.00 4,065.50 318.40
2016-12-31 2,242.50 4,980.90 281.90
2016-09-30 2,242.50 4,980.90 281.90
2016-06-30 2,925.20 4,989.60 303.70
2016-03-31 2,925.20 4,989.60 303.70
2015-12-31 3,174.70 4,338.30 355.70
2015-09-30 3,174.70 4,338.30 355.70
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 3,343.90 319.00
2014-09-30 4,020.30 3,343.90 319.00
2014-06-30 5,248.70 3,116.10 410.90
2014-03-31 5,248.70 3,116.10 410.90
2013-12-31 5,446.40 2,158.90 352.90
2013-09-30 5,446.40 2,158.90 352.90
2013-06-30 5,520.30 2,046.10 560.20
2013-03-31 5,520.30 2,046.10 560.20
2012-12-31 5,321.60 1,176.50 330.20
2012-09-30 5,321.60 1,176.50 330.20
  • Tullow Oil's level of debt (116.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (59.5% vs 116.9% today).
  • Debt is well covered by operating cash flow (31.7%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Tullow Oil's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tullow Oil has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.95%
Current annual income from Tullow Oil dividends. Estimated to be 3.18% next year.
If you bought £2,000 of Tullow Oil shares you are expected to receive £39 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 (2.08%).
  • Tullow Oil's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.77%).
Upcoming dividend payment

Purchase Tullow Oil before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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 16 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 12 Stocks 5.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 699 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.1%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.8%

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 17.00
2020-12-31 0.08 19.00
2019-12-31 0.08 19.00
LSE:TLW Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-07 0.048 1.766
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
2009-03-11 0.083 0.575
2008-08-27 0.082 0.987

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Tullow Oil's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Tullow Oil's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. Tullow Oil has a total score of 2/6, see the detailed checks below.


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 56
TENURE AS CEO 2.3 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 by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • 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:

2.6
Average Tenure
56.5
Average Age
  • The tenure for the Tullow Oil management team is about average.
Management Team

Paul McDade

TITLE
CEO & Executive Director
COMPENSATION
$3M
AGE
56
TENURE
2.3 yrs

Les Wood

TITLE
CFO & Executive Director
COMPENSATION
$2M
AGE
57
TENURE
2.2 yrs

Angus McCoss

TITLE
Exploration Director & Executive Director
COMPENSATION
$2M
AGE
57

Sandy Stash

TITLE
Executive Vice President of Safety & Sustainability
TENURE
2.6 yrs

Brian Williams

TITLE
Vice President of Corporate Finance
TENURE
19.6 yrs

Chris Perry

TITLE
Head of IR and VP of IR & Communications

Gary Thompson

TITLE
Executive Vice President of West Africa
TENURE
2.6 yrs

Claire Hawkings

TITLE
Executive VP of Organisation Strategy & Company Performance
AGE
49

Ian Cloke

TITLE
Executive Vice President of New Ventures
TENURE
2.6 yrs

Mark MacFarlane

TITLE
Executive Vice President of East Africa
Board of Directors Tenure

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

2.3
Average Tenure
57
Average Age
  • The average tenure for the Tullow Oil board of directors is less than 3 years, this suggests a new board.
Board of Directors

Dorothy Thompson

TITLE
Chairman of the Board
COMPENSATION
$140K
AGE
58
TENURE
1.1 yrs

Paul McDade

TITLE
CEO & Executive Director
COMPENSATION
$3M
AGE
56
TENURE
13.4 yrs

Les Wood

TITLE
CFO & Executive Director
COMPENSATION
$2M
AGE
57
TENURE
2.2 yrs

Angus McCoss

TITLE
Exploration Director & Executive Director
COMPENSATION
$2M
AGE
57
TENURE
12.7 yrs

Steve Lucas

TITLE
Non Executive Director
COMPENSATION
$81K
AGE
64
TENURE
7.4 yrs

Mike Daly

TITLE
Non-Executive Director
COMPENSATION
$70K
AGE
65
TENURE
5.2 yrs

Jeremy Wilson

TITLE
Senior Independent Director
COMPENSATION
$93K
AGE
54
TENURE
2.3 yrs

Sheila Khama

TITLE
Non-Executive Director
TENURE
0.3 yrs

Genevieve Sangudi

TITLE
Non-Executive Director
AGE
42
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
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
X
Management checks
We assess Tullow Oil's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tullow Oil has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


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

How Tullow Oil plc (LON:TLW) Can Impact Your Portfolio Volatility

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. … What this means for you: Since Tullow Oil has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

Here's Why Tullow Oil (LON:TLW) Has A Meaningful Debt Burden

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … LSE:TLW Historical Debt, July 24th 2019 How Strong Is Tullow Oil's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching Tullow Oil's balance sheet over time.

Simply Wall St -

Based On Its ROE, Is Tullow Oil plc (LON:TLW) A High Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Tullow Oil: 3.0% = US$85m ÷ US$2.9b (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … How Does Debt Impact Return On Equity?

Simply Wall St -

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 -

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 -

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 -

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 -

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.

Simply Wall St -

Have Investors Priced In Tullow Oil plc's (LON:TLW) Growth?

What’s more interesting is that, Tullow Oil’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. … Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TLW.

Simply Wall St -

Is Tullow Oil plc's (LON:TLW) Balance Sheet A Threat To Its Future?

On top of this, TLW has produced US$1.22B in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 23.74%, indicating that TLW’s current level of operating cash is high enough to cover debt. … Next Steps: TLW’s debt and cash flow levels indicate room for improvement. … Its cash flow coverage of less than a quarter of debt means that operating efficiency could be an issue.

Simply Wall St -

Company Info

Description

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 in 17 countries. The company was founded in 1985 and is headquartered in London, the United Kingdom.

Details
Name: Tullow Oil plc
TLW
Exchange: LSE
Founded: 1985
£2,842,284,001
1,403,597,038
Website: http://www.tullowoil.com
Address: Tullow Oil plc
9 Chiswick Park,
566 Chiswick High Road,
London,
Greater London, W4 5XT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE TLW Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK TUWL.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB TQW Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
ISE TQW Ordinary Shares Irish Stock Exchange IE EUR 02. Jan 1992
BATS-CHIXE TLWL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK TUWO.Y ADR Pink Sheets LLC US USD 07. Dec 2009
GHSE TLW GBP0.1 Ghana Stock Exchange GH GHS 06. Jun 2019
Number of employees
Current staff
Staff numbers
893
Tullow Oil employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 20:38
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/15
Last earnings filing: 2019/07/24
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.