Tullow Oil Exits Gabon, Announces Asset Sale Worth $300 Million
Tullow Oil plc TUWOY, a London-based independent exploration and production company, has announced the sale of its entire portfolio of assets in Gabon. The company has signed a sale and purchase agreement to sell 100% of the shares of Tullow's subsidiary, Tullow Oil Gabon S.A., to Gabon Oil Company.
The company announced its exit from Gabon in March 2025, following which the agreement was signed for a total cash consideration of $300 million. The assets included in the transaction were expected to contribute around 100,000 barrels of oil per day (bopd) to Tullow Oil's total production guidance for the year. Furthermore, the assets also include 36 million barrels of proved plus probable reserves (2P reserves).
The completion of the sale is subject to the receipt of all necessary government and regulatory approvals. The transaction is expected to be completed by mid-2025. TUWOY has stated that the proceeds from the deal shall be utilized to reduce its net debt and improve its balance sheet. The company has stated that the sale of its Gabonese assets is beneficial to both the company and its shareholders. Tullow Oil plans to retain its focus on its core assets in Ghana.
TUWOY currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the energy sector are Diversified Energy Company plc DEC, Expand Energy Corporation EXE and RPC, Inc. RES, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Diversified Energy Company is an independent oil and natural gas producer in the United States. The company is primarily engaged in the production, transportation, and marketing of natural gas and natural gas liquids. The rising demand for natural gas as a cleaner-burning fuel, along with an uptick in the commodity's prices, is expected to positively impact DEC's bottom line.
Expand Energy is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. Natural gas is expected to play an increasingly important role in the energy transition journey. Expand Energy is poised to benefit from the rising demand for natural gas as a cleaner-burning fuel. The recent rise in natural gas prices is also anticipated to positively impact EXE's profitability.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. RPC is strongly committed to returning value to shareholders through consistent dividend payments and share buybacks, making it an attractive choice for investors seeking steady returns.
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