Tullow Oil Sticks to Capricorn Merger Plans, $200M Cashflow Guidance

Shadia Nasralla
Wednesday, September 14, 2022

Africa-focused Tullow Oil said on Wednesday it would stick to the current form of its plan all-share merger plan with Capricorn Energy CNE.L, shrugging off criticism from some Capricorn investors who say the deal undervalues the company.

Capricorn's board supports the merger, but the group also said last week it was exploring alternative deals after unnamed parties expressed interest.

Capricorn shareholders Madison Avenue, Legal & General IM, and Schroders, as well as some other investors, have come out against the merger plan.

The deal requires approval from at least 75% of Capricorn shareholders, a threshold that might be in jeopardy if hedge fund investors who have been critical of the deal turn their derivative investments into direct shareholdings.

Tullow on Wednesday reiterated its guidance for full-year free cash flow of $200 million at an oil price of $95 a barrel after recording $205 million negative cash flow in the first half after an acquisition and an arbitration payment.

Tullow, which had a market capitalization of around $835 million as of Tuesday, had net debt of around $2.3 billion at the end of the first half. It forecasts its net debt to core profit ratio, or gearing, to fall to 1.5 times by year-end.

 (Reuters - Reporting by Shadia Nasralla; editing by Jason Neely)

Categories: People & Company News Energy Industry News Activity Africa

Related Stories

BP, Equinor, Shell and TotalEnergies Pledge $500M to Boost Energy Access

Global OTEC Presents OTEC Power Module for Remote Offshore Platforms

Bourbon to Support Oil and Gas Major’s Drilling Campaign Off Namibia

Current News

Oil Edges to 2-Week High on Ukraine News

EMGS to Conduct CSEM Survey Offshore India

Poland to Open New Areas for Offshore Wind Development in Baltic Sea

Swedish Firm Eyes Multi-Megawatt Wave Energy Farm Off Grenada

Subscribe for OE Digital E‑News