2011 Annual Report PDF - Tullow Oil plc

Capital market relationships
Tullow places great emphasis on achieving top quartile and best
practice performance in investor relations and capital market
communications. A total of 26 corporate updates were
announced during the year in addition to the six annual
programme announcements for Results, Operational Updates
and Trading Statements and Interim Management Statements.
In 2011, Senior Management and Investor Relations met with
over 370 institutions in the UK, Europe and North America and
presented at 15 investor conferences and 18 sales force
briefings. This amounted to almost 50 investor days, split over
22 cities in 13 countries.
2011 TSR amounted to 12% (2010: down 3%). This compares
with a 2% decline in the FTSE 100 TSR performance in 2011.
Five year share price performance relative to the FTSE 100
400
320
240
160
80
0
06 07 08 09 10
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Tullow FTSE 100
Tullow’s Investor Relations (IR) team was ranked twelfth in
Europe and third in the UK in the 2011 Investor Relations
Magazine perception survey. This is an excellent achievement
and recognises the Group’s continued effort to deliver best-inclass
Investor Relations and Communications. Tullow also
received the award for Best Communication of Governance and
Risk in the annual report in the 2011 Investor Relations Society
Best Practice Awards.
Substantial shareholdings
As at 13 March 2012, the Company had been notified in
accordance with the requirements of section 5.1.2 of the UK
Listing Authority’s Disclosure Rules and Transparency Rules
of the following significant holdings (being 3% or more) in the
Company’s ordinary share capital.
Shareholder Number of shares % of issued capital
BlackRock Inc 106,568,436 11.77%
Prudential plc 63,386,247 7.00%
IFG International
Trust Company
Limited
Legal & General
Group plc
More information
Page
Risk management 40
Long-term performance risks 43
Financial statements 111
38,960,366 4.30%
35,414,975 3.91%
Events since year-end
In February 2012, Tullow completed the farm-down of one third
of its Uganda interests to Total and CNOOC for a total headline
consideration of $2.9 billion paving the way for full development
of the Lake Albert Rift Basin oil and gas resources. The
Revolving Corporate Facility commitments reduced from
$650 million to $500 million following the Uganda
farm-down completion.
Financial strategy
Our financial strategy continues to be to maintain flexibility to
support the significant appraisal and development programmes
in Ghana and Uganda and effectively allocate capital across
the remainder of our business. This financial flexibility has
been materially enhanced by expansion of our debt facilities
to $4.15 billion during 2011 and by the finalisation of the
$2.9 billion Uganda farm-down in early 2012.
Outlook
The outlook is very positive for Tullow. In 2012, we expect
significant progress in Ghana and Uganda and we have an
exciting high-impact exploration and appraisal programme
with wells planned in French Guiana, Côte d’Ivoire, Ghana,
Kenya, Sierra Leone and Uganda. We are well positioned to
continue to deliver significant growth in shareholder value
over the coming years.
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BUSINESS REVIEW
Shareholder analysis by investment style
Growth 39%
Value 19%
GARP 16%
Index 14%
Other 12%
Hedge funds