TourmalineTOU released earnings last night. I think they were pretty good, but I do not follow the company closely.
Just some of the highlights:
- Production is 75% nat gas and 25% liquid (not very different from Crew)
- Q2 production was up 13% vs last year (I do not think Crew will have higher production this year vs last)
- CF exceeded capex with $433M of FCF
- They pay a dividend, a special dividend, and net debt was down.
How do they do it? Crew claims they have one of the lowest production cost. Fair, Crew is much smaller and one cannot compare TOU (clearly a leader on many fronts) vs a marginal player. But they are in the same business, with the same prodcution mix and Crew's production costs are low.
I still think Crew will give us
- lower production vs last year
- CF in line with capex
- no dividend
- debt will stay flat or increase slightly
I guess we will see on Aug. 7.