BNS on TourmalineOUR TAKE: Positive. We see TOU's deal to acquire Black Swan Energy Ltd. (private) as another big win on the acquisition front. In our view, the Black Swan assets are among the most attractive in the North Montney region, with strong productivity and low costs from the core Aitken area and significant long-term upside potential in the Laprise and Jedney areas. The assets are contiguous with TOU's existing Conroy / Laprise assets and will establish the company as the dominant player in the North Montney. TOU expects to generate material free cash flow from the assets and has increased its dividend by ~6.25% to $0.17/sh quarterly effective Q3/21. We see the dividend funded by <10% of cash flow (and <20% of free cash flow), leaving the company ample flexibility for further acquisitions and shareholder returns. TOU continues to be our top pick, with 1) a top-tier asset base (~1.8x weighted-average well-level PIR), 2) a well-timed consolidation strategy, 3) a strong free cash flow yield (~15% 2020 FCFf yield vs. North American large cap peers at ~12%), and 4) attractive valuation (~3.7x 2022E DACF versus peers at ~4.9x). We maintain our SO rating and have increased our Target Price to $47 per share on the accretion from the acquisition.