LONDON: West Africa-focused Tullow Oil expects its 2021 free cashflow to come in higher than previously forecast at $250 million and expects this year's cash flow to come in at $100 million at an oil price of $75 a barrel, it said on Wednesday.
Tullow, with a market capitalisation of around $1 billion as of Tuesday, is focusing on reducing its $2.1 billion debt pile and has hedged 50%-75% of its output of around 60,000 barrels of oil equivalent per day between $51 and $78 a barrel to 2024.
The hedging cost is between $1.6 and $2 per barrel, it said.
Benchmark crude oil futures are trading near $90 a barrel, with much of last year's third quarter above $80. Tullow had said in November it saw its 2021 free cash flow at $100 million.
"(2021) free cash flow is expected to be $250 million, ahead of guidance, driven by continued focus on costs, supportive oil prices in the latter parts of 2021 and favourable working capital movements," Tullow said in a trading statement.
It is due to report full-year results on March 9.
Tullow is seeking new investors for its yet to be developed projects in Guyana and Kenya, having submitted a revamped $3.4 billion development plan for some of its onshore Kenyan oilfields last month, it said.
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