Tullow Oil’s shares hit a record low, as the company faces a challenging financial outlook and production challenges. Tullow’s CEO, Ian Perks, is focusing on operational efficiency, cost optimization, and refinancing to address the company’s mounting debt and cash flow issues. The company is in talks with creditors to refinance its capital and explore alternative options, including ‘amend and extend’ exercises, to avoid potential defaults. Tullow’s 2025 production forecast is at the lower end of its range, and next year’s output could drop further due to natural well declines in Ghana. Despite recent asset sales and progress in Ghana, the company’s cash flow is under pressure, making refinancing crucial. Tullow expects a net debt of approximately $1.2 billion this year, an increase from its earlier forecast. The company’s shares have fallen significantly, with a 35% drop to 5.55 pence, impacting its market value. Tullow’s CEO emphasizes the need to put the company on a sustainable financial footing, with a focus on operational efficiency and cost optimization. The company’s combined credit risk is high, indicating a potential default in the next year. Tullow is also working on resolving tax disputes and refinancing its 2026 bonds to unlock upside potential. The situation highlights the challenges faced by oil producers in a rapidly changing energy landscape.