Canada’s Tourmaline sees record Q1 cash flows
Tourmaline Oil, Canada’s largest natural gas producer, reported record quarterly cash flows for Q1 2022 on May 5, with production 23% higher year-on-year and net earnings up 5%.
Cash flow for the quarter was a quarterly record of C$1.08bn (US$840mn), up from C$629.3mn a year ago, while free cash flow (FCF) reached a quarterly record of C$618.2mn, underpinning a special dividend of C$1.50/share to be paid May 19. Full-year FCF is forecast at C$3.9bn.
Production in Q1 2022 averaged a record 507,059 barrels of oil equivalent (boe)/day, up from 411,579 boe/day, with more than half the increase reflecting the impact of several acquisitions of producing assets in 2021. Natural gas production increased 23%, to 2.36bn ft3/day from 1.92bn ft3/day, while liquids production was also up 23%, to 113,569 barrels/day.
Tourmaline realised an average natural gas sales price of C$4.86/’000 ft3 in Q1, up from C$3.86/’000 ft3 in the same period a year ago. About 922mn ft3/day of its gas production is hedged for 2022 at a weighted average price of C$3.55/’000 ft3, while 613mn ft3/day is unhedged and exposed to export market prices at several hubs in Canada and the US, including the US Gulf Coast.