Tourmaline Oil Corp (Alberta) T.TOU

Non Linear Opportunity - TOU

[MyHoneyPot]

Tourmaline is a Debt Free company (Including Topaz Shares), and Topaz was just added to the S&P/TSX Composite Index, on Dec 03,2021.

This is an amazing accomplishment, In about two years they have gone from concept, to company, to being included in the TSX index. This is an illustration of how management can create value, in an enviroment with tuff gas markets, with significant debt on the balance sheet and with a portion of their current cash flow. 

How does this change the way the Company Operates?

Leadership - Mike Rose has been leading a company with debt, and in Q3 2018 it produced 250,000 boe day, with 1.7 Billion in Net Debt and a 20 dollar share price. 

Today TOU is zero debt, 500,000 boe day, and a 40 dollars share price. On its was to 560,000 boe day in 2025.

Asset Base (3 million acres, 2.0 billion 2P reserves)

It is clear that TOU has the best asset base in the entire market, and the ability to take other peoples play indea's incorporate it into your porfolio and make it work, is not something every company can do well. 

Mike Rose now has the best land assets, best bank financing (2%), most efficient operations, and he has nothing to fix in Tourmaline. 

Future Opportunites

Tourmaline production is now on a yearly oportunistic growth profile:

1. They can take on large capital projects
2. They are generate tons of cash flow (2 billion)
3. They have the very best assets
4. They can acquire addional assets that are accretive
5. Soon they will have a premium evaluation

My feeling is to get where the company is now, has been hard work, and while the rest of the world is fixing it balance sheet, buying back shares, Toumaline is setting a new path going forward for energy companies, and i expect even better things in the future.

Mike Rose has done all this in a tuff enviroment many time with hand cuff by banks, equity markets, and limited cash flow. I am really excited what is going to happen in Tourmaline in the future. 

IMHO