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) > RBC

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Comment by retiredcfon Mar 07, 2024 9:04am

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Post# 35920080

RE:RBC

Key Points:

Q4/23 production of 556,957 boe/d (24% liquids) compared to RBCe at 556,180 (Street: 556,600 boe/d) and drove AFFO of $2.62 slightly ahead of our estimate of $2.59/sh (Street: $2.48/sh).
Capital investment of $636 million compared to Street expectations at $630 million as $282 million in FCF was generated in the quarter.
The company increased its base dividend by 7% to $1.20/sh (annualized, from $1.12/sh) and announced a $0.50/sh special dividend to shareholders of record on March 14, 2024.
2024 guidance was revised at 580-590 mboe/d on $2bn of EP capital from 600 mboe/d at the midpoint on $2.15bn of capital spend, resulting in +5% YoY growth and $1.1 billion in FCF (though the reduction was driven by gas, as liquids were largely static). The 5-year plan was also updated and details the company now reaching 715,000 boe/d by 2028 (previously 720,000 boe/d). 2024 reductions include rig count and deferral of select exploration and facility projects.
TOU’s 2P reserve book increased by 10% to 4,967 mmboe (2022: 4,500 mmboe), while PDP reserves also increased by 20% to 1,180 mmboe primarily thru its Bonavista acquisition (see more - here). 2P reserves were added at a FD&A cost of $9.80/boe (2022: $10.59/boe), which when combined with field netbacks of $19.80/boe yields a respectable recycle ratio of 2.0x.

• Recent operational highlights include (1) The company now expects to drill ~271 net wells in 2024; (2) The Horse 10-26 three well Wilrich C pad tested 29.3 mmcf/d over a 70 hour test in January; (3) The Kakwa 10-2 three-well Wilrich pad had a rate of 20 mmcf/d over a 112 test period and brought onstream in February; (4) The Caroline 16-35 two-well Glauconite pad had an average IP30 of 5.1 mmcf/d and 166 bbl/d of liquids; (5) Tested two down-dip Glauconite wells (7.7 mmcf & 946 bbl/d liquids; 8 mmcf/d & 2020 bbl/d liquids) over a 134 hour flow test (now onstream) and IP7; (6) Drilled its first monobore design within the Glauconite which it expects to reduce drilling costs by 15-20%.