Tullow on the verge of bankruptcy
The company’s shares plunged over 70% to levels not seen since 1999
Stocks impacted: Tullow Oil plc (TLW)
Irish-founded oil exploration group cut its oil production forecasts for the coming years, suspended its dividend, and announced that its chief executive Paul McDade and its exploration director Angus McCoss had quit. The company cut its 2019 output forecast for a third time amid issues at two oil fields and now it is expected that the output for 2020 will fall to between 70,000 and 80,000 barrels of oil per day from 87,000 for this year. In a conference call, the company said it was open to receiving offers to acquire the company at the proper value. As a reminder, Tullow has debts of nearly $3 billion. Amid the news, Tullow Oil shares dipped 72% to register twenty-year lows and it was its lowest close since December 2003. On Tuesday, stocks gain around 12%.
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