Tourmaline Oil Corp (Alberta) T.TOU

Alternate Symbol(s): TRMLF

Energy Oil & Gas E&P

Tourmaline Oil Corp. is a natural gas producer, which is focused on producing natural gas in North America. The Company is focused on long-term growth through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin. It operates in three basins, which include the Alberta Deep Basin, NEBC Montney Gas/Condensate and Peace River Triassic Oil. It has ownership interests in 22 natural gas plants in the Alberta Deep Basin. It owns and operates seven natural gas processing facilities with an aggregate capacity of approximately 1.0 Bcf/d with related gas gathering systems and NGL handling infrastructure in the NEBC complex. The Company owns and operates two oil batteries in the Peace River Triassic Oil basin. The Company’s operations are focused on northeast British Columbia and include a large contiguous land base with a Montney resource. Its Montney area assets include Septimus / West Septimus, Groundbirch, Monias and Tower.

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Tourmaline Oil Corp (Alberta)

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Post by Betteryear2on Nov 03, 2021 5:19pm

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Post# 34084179

Record Free Cash Flow in Third Quarter 2021

CALGARY, AB, Nov. 3, 2021 /CNW/ - Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline" or the "Company") is pleased to release financial and operating results for the third quarter of 2021.

HIGHLIGHTS

Record quarterly cash flow(1) of $761.3 million and free cash flow(2) of $369.5 million in the third quarter.
Current production is ranging between 485,000 – 490,000 boepd; the Company expects to achieve 500,000 boepd by early December, a month earlier than previously anticipated.
The Company now expects exit 2021 net debt(3) of approximately $815 million (at current strip pricing(4)), after giving effect to the special dividend of $0.75/share ($247.2 million) paid on October 7, 2021. Long term, the Company intends to keep net debt in the $1.0 - $1.2 billion range.
The Gundy and Aitken facility expansions will be completed and on production in December 2021, approximately one month earlier than expected.
The Company's original methane emission reduction target of 25% below 2018 levels by 2023 has already been achieved three years ahead of schedule.

PRODUCTION UPDATE

Current production is ranging between 485,000 – 490,000 boepd; the Company expects to achieve the exit production target of 500,000 boepd by early December - ahead of schedule.
Q3 2021 average production was 456,489 boepd. Force majeure events impacting Pembina's Redwater fractionation facilities and Pembina's Northern NGL pipeline system reduced Q3 average volumes by a total of 2,825 boepd. Pembina's Redwater fractionation facilities and Northern NGL pipeline system have both resumed operations. Because the Pembina Northern NGL pipeline system continued to be offline for the first 11 days of October, expected Q4 average volumes were reduced by 625 boepd; however, Q4 guidance remains in the 485,000 to 495,000 boepd range.
The Company expects 2022 average production of 500,000-510,000 boepd (2.31 bcf/day of natural gas, 115,000 bpd of oil, condensate, NGLs).

FINANCIAL RESULTS

Third quarter 2021 cash flow was $761.3 million ($2.32 per fully diluted share) compared to $279.9 million in Q3 2020 ($1.03 per fully diluted share).
Nine-month 2021 cash flow is $1.96 billion; full-year 2021 cash flow of $3.1 billion is now expected.
The Company delivered free cash flow of $369.5 million in Q3 2021 on EP capital spending of $379.7 million.
Third quarter 2021 earnings were $361.1 million ($1.10 per fully diluted share), compared to $4.8 million ($0.02 per fully diluted share) in Q3 2020.
The average Q3 2021 operating netback of $18.35/boe featured continued strong cash cost (operating, transportation, general and administrative, and interest) control ($8.72/boe), coupled with higher prices across the entire product price complex.