A financial report on Tullow Oil Essay Example | Topics and Well Written Essays - 1500 words

A financial report on Tullow Oil - Essay Example Head Quartered in London, Tullow employees more than 250 people all over the world with production capacity of approximately 80000 barrels per day. In 2007 company was drilling more than 40 wells spread across the globe. The overall global strategy of Tullow has always remained in the domain of making long term investments in assets and markets where company’s skills and expertise can make a difference. Besides investing in long term assets, Tullow follow a consistent strategy of following growth. Tullow’s focus has always remained on the exploration and exploitation of its existing resource base with more operational innovation and active portfolio management. It is because of this strategy that company is focusing on acquiring assets and making acquisitions in order to create synergy and achieve value for its stakeholders. Company is also continuously focusing on making capital expenditures and reinvesting the major portion of its profits into the business in order to fund growth of the business through its own internal resources. The beta is negative because of the fact that stock returns and market returns almost run parallel in opposite directions. The tullow stock has continuously risen in price whereas FTSE over the period of 52 weeks has shown a negative return. UK Gilts are considered as the most secure securities as they are backed up by the government of UK. In every market, all government securities issued are considered as risk free investments and returns offered by them are almost considered as risk free rate of investment. Therefore to make a direct comparison between risks free investment security and a security open to most of the risks in the market in a direct way will be little bit difficult to make. It is because of the fact that all other securities other than offered by the government are virtually open to every risk under the sky however government securities are, to some