A British oil stock tanked 60% after the shock resignation of the CEO and head of exploration

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  • Tullow Oil, a British oil company, tanked on Monday morning after the company announced the resignation of its CEO and exploration director as well as cutting its production guidance.
  • Tullow's board also suspended its dividend.
  • As of Friday's close, Tullow Oil's market cap was just under $1.2 billion (£890 million).
  • The stock tanked 60% in the first hour of trading in London, wiping over $700 million (£534 million) from its market cap.
  • View Business Insider's homepage for more stories.

Tullow Oil, a British oil company, tanked on Monday morning after the company announced the resignation of its CEO and exploration director as well as cutting its production guidance. Tullow's board also suspended its dividend.

As of Friday's close, Tullow Oil was worth just under $1.2 billion (£890 million). The stock tanked 60% in the first hour of trading in London, wiping over $700 million (£534 million) from its market cap.

The oil company announced on Monday that its CEO, Paul McDade, and Angus McCoss, exploration director resigned with immediate effect, and the firm will cut production guidance for this year and 2020.

"We are taking decisive action to restore performance, reduce our cost base and deliver sustainable free cash flow," the company said in a statement announcing the changes.

"A number of factors have been identified that have caused this reduction in production guidance," including "significantly reduced offtake of gas by the Ghana National Gas Company," as well as "increased water cut on some wells, and lower facility uptime," the company said in the statement.

Dorothy Thompson will now move to the executive chair on a temporary basis among as part of other moves at the top of the company.

Thompson added that the board was disappointed with the financial performance of the company and was reviewing operations.

"A full financial and operational update will be provided at Tullow's Full Year Results on 12 February 2020, with an update on progress to be given in the Group's Trading Statement on 15 January 2020."

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