Eric Nuttall BUY
Tourmaline Oil Corp(TOU-T)
02/04/2024
Canada's go-to natural gas name. Great CEO, much insider share ownership, decades of high-quality inventory, and quality infrastructure. Everyone wants to own nat gas now, because next year will see a big buildout of LNG capacity which will raise nat gas prices. Now, there's a lot of nat gas in storage because last winter was so mild. The next few quarters will be nasty for the nat gas price, but the market knows this. At $4 nat gas in 2025, TOU would trade at 5x cash flow and 10% free cash flow yield, a premium to its peers. $89 price target or 42% upside.
Oil / Gas
Eric Nuttall
$62.860
Owned