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Bullboard - Stock Discussion Forum 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... see more

TSX:TOU - Post Discussion

Tourmaline Oil Corp (Alberta) > Big Dividends product of Big Ideas
View:
Post by MyHoneyPot on Jan 26, 2022 12:14pm

Big Dividends product of Big Ideas

People need to realize that TOU will still be growing, and the growth will be a lot more strategic. 

Not Sweating
  • Share Buybacks
  • Unsustainable Dividends (Special Divvy Policy)
  • Debt Buydown
So what is Mike Rose doing now that the TOU machine is just spewing out cash with no debt, and over 3 million acres of resouce, do you think he has gone into retirement.

No other energy company is positioned the way TOU is, they just paid out 400 million in a special dividend, and they are still zero debt. Do you think if the right investment came along he would not buy it if it was accretive to TOU.

TOU just does not want cash sitting on the balance sheet.

TOU likely has twice the opportunities as it had before the special divvy and it tools are now, (TPZ, Small Valuable Share Float, Zero Debt Balance Sheet, 3 million acres, 3rd largest gas processing infastructure, Fiscal Flexibility, and Management Ownership, 2% borrowing, with its stellar credit rating)

This is just the start of a new phase of growth for TOU, that other companies can not even imagine. 

IMHO
Comment by fishcarrier on Jan 26, 2022 12:44pm
"with no debt"  Give or take $1B...lol
Comment by Beakr123 on Jan 26, 2022 1:07pm
He didnt mention it in his rant but TOU's ownership of Topaz is worth about a billion so while not literally debt free, they could offload their shares and be debt free.
Comment by realcdn on Jan 26, 2022 1:09pm
Yeah, I don't know why he keeps saying zero debt... doen't make him sound very credible.
Comment by bagcheese on Jan 26, 2022 1:26pm
I 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 ...more  
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