Tullow operates the Jubilee and TEN oil fields offshore Ghana and has just announced the sale of its Gabonese assets for US$300m. Current production and reserves are a substantial c55kboed and 165mmboe, including Gabon. Following a disciplined re-focusing of the business and the sale of its Gabonese assets, the company's de-leveraging targets of net debt under US$1bn and leverage under 1x are well within sight with further options to accelerate the process. Tullow has now returned to sustained profitability from 2024, we forecast. We calculate a risked NAV10 valuation of 56p/share of which core NAV represents 49p/share which compares with the current share price of 14p while, on consensus forecasts, Tullow is trading at a 22% discount to the average for peers on EV/EBITDA and a 21% discount on EV/NCG for 2025.
