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Tourmaline Oil Corp (Alberta) T.TOU

Alternate Symbol(s):  TRMLF

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.


TSX:TOU - Post by User

Comment by bagcheeseon Jan 26, 2022 1:26pm
145 Views
Post# 34363244

RE:RE:RE:Big Dividends product of Big Ideas

RE:RE:RE:Big Dividends product of Big IdeasI think what he means is, with annual revenue of ~1.5 billion, carrying a billion in debt at a prefered rate due to the companies bond level rating doesn't effect the balance sheet due to the debt to revenue ratio Tourmaline enjoys.

Then consider the cash on hand and return on debt vs the debt rate. It's essentially the same as having no debt due to the money being generated from the debt as well as the annual revenue and revenue projections. If they paid of the debt it wouldn't be as advantageous as using low interest debt to generate higher returns on implementing infrastucture and cap ex. In short, the company is further ahead having this level of debt due to the additional revenue being generated and annual revenue being higher that total debts versus the interest repayment rate and the pricipal amount is responsible given the revenue and cash on hand and cash flow. 1B is nothing for a company with the profile of Tourmaline. (Canada's Largest NAt Gas producer).
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