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    Canada’s Tourmaline sees record Q1 cash flows

Summary

Production records were also set.

by: Dale Lunan

Posted in:

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

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.