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    Canada’s Tourmaline reports production gains in 2023


But production guidance for 2024 has been reduced in the face of weak commodity prices. [Image credit: Tourmaline Oil]

by: Dale Lunan

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Natural Gas & LNG News, Americas, Corporate, Financials, News By Country, Canada

Canada’s Tourmaline reports production gains in 2023

Tourmaline Oil, Canada’s largest natural gas producer, said March 6 it grew total production by 4% in 2023 and 6% in Q4 2023 but has reduced its guidance for 2024 production by 2.5%, in part reflecting a decision to reduce capital expenditures this year to C$2.13bn (US$1.58bn) from C$2.35bn.

Q4 production averaged 556,957 barrels of oil equivalent (boe)/day, up from 511,590 boe/day in Q4 2022, while full year production in 2023 rose to 520,366 boe/day 500,832 boe/day.

Natural gas production in 2023 averaged 2.41bn ft3/day, up from 2.33bn ft3/day in 2022, while Q4 2023 production averaged 2.54bn ft3/day, up from 2.38bn ft3/day in the comparable 2022 quarter.

Tourmaline is now guiding to full-year 2024 production of 580,000-590,000 boe/day, a 2.5% decrease from its previous guidance, despite the reduced forecast for 2024 capital expenditures. Forecast natural gas production in 2024 has been reduced by about 100m ft3/day, while liquids production has been increased by about 1,000 barrels/day.

“Tourmaline does not believe that selling incremental gas volumes into a weak gas market is the best decision or return proposition for shareholders,” the company said. “Should natural gas pricing recover on a sustained basis during the second half of 2024, the company can pivot and materially grow production toward 2024 exit.”

Net earnings in 2023 fell 61%, to C$1.74bn from C$4.49bn in 2022, but Q4 2023 net earnings recovered to C$700.2mn from a C$30.4mn loss in Q4 2022.

Capital expenditures in 2023 increased to C$2.1bn from C$1.9bn, while free cash flow declined to C$1.7bn from C$3.2bn.