TOURMALINE DELIVERS NET EARNINGS OF $2 BILLION CALGARY, AB, March 2, 2022 /CNW/ - Tourmaline Oil Corp. (TSX:TOU) ("Tourmaline" or the "Company") is pleased to release financial and operating results for the full year and fourth quarter of 2021 as well as 2021 reserves.
HIGHLIGHTS
- Full-year average 2021 production of 441,115 boepd was up 42% over 2020 average production of 310,598 boepd.
- Current production is ranging between 500,000-510,000 boepd, with a Q1 2022 exit of 510,000-515,000 boepd anticipated.
- Full-year 2021 after tax net earnings were $2.03 billion ($6.40 per diluted share).
- Full-year 2021 cash flow(1) was a record $2.93 billion ($9.25 per diluted share(2)) up 147% over 2020.
- Tourmaline generated a record $1.49 billion of free cash flow(3) ("FCF") in 2021.
- Exit 2021 net debt(4) was $973 million (0.25 times 2021 net debt to Q4 annualized cash flow) and below the Company's long-term net debt target of $1.0-1.2 billion.
- Year-end 2021 proved, developed producing ("PDP") reserves of 947.3 million boe were up 50%, total proved ("TP") reserves of 2.19 billion boe were up 39% and proved plus probable ("2P") reserves of 4.24 billion boe were up 33% over year-end 2020, including 2021 annual production of 161.0 million boe.
- Tourmaline replaced 677% of its 2021 annual production of 161.0 million boe with 2P additions of 1.090 billion boe including 2021 production.
- Tourmaline's 2P reserve value(5) equates to $97.54 per diluted share(6) using the January 1, 2022 engineering price deck and a 10% discount rate. TP and PDP reserve value is $62.70 and $33.77 per diluted share(7), respectively, using the same pricing and discount rates.
- After 13 years of operations, Tourmaline now has 19.5 TCF of 2P natural gas reserves, the largest in Canada and one of the largest, lowest development cost, lowest emission natural gas reserve bases in North America.
- In 2021, the Company further diversified the gas marketing portfolio by establishing a US Gulf Coast LNG pathway and entered into a long-term arrangement with Cheniere Energy Inc. In 2023, Tourmaline will become the first Canadian EP company participating in the LNG business with full exposure to JKM (Japan Korea Marker) pricing.
- The Company's exploration program has successfully tested six new horizons spread across the three operated complexes thus far.
- Tourmaline achieved its net 25% methane reduction target in 2021, three years earlier than targeted.