Tourmaline Oil (TOU) investor relations material

Executive summary

• Q2 2026 cash flow reached $786.1 million (CAD 786 million), with $192.1 million in free cash flow generated in the quarter.

• Entered a long-term agreement to boost propane and butane exports via the AltaGas REEF terminal, increasing LPG export exposure by 55% and improving realized margins.

• NEBC Montney infrastructure buildout is on schedule, with five of six pipelines completed and Aitken plant expansion set for Q4 2026.

• Announced a one-year pause between phases of the B.C./NEBC infrastructure build-out to enhance free cash flow and shareholder returns in 2027–2028.

• Largest natural gas producer in Canada and sixth largest in North America, with 6.1 billion Boe 2P reserves and 27.7 Tcf gas reserves.

Financial highlights

• Q2 2026 average production was 594,198 boepd, slightly below guidance due to storage injections and price-related shut-ins.

• Net debt as of June 30, 2026, was $1.5 billion (CAD 1.5 billion), below the long-term target of $1.75 billion.

• Operating costs per boe were $4.59, down 10% year-over-year and 3% sequentially; full-year 2026 OpEx expected at $4.50–$4.60/boe.

• 2026 EP capital budget remains at $2.55 billion after a $350 million reduction earlier in the year.

• Estimated 2026 free cash flow at current strip pricing is $880 million.

Outlook and guidance

• Full-year 2026 production guidance remains 620,000–640,000 boepd, with a year-end exit target of 660,000 boepd.

• 2027 and 2028 EP spending revised to $2.55 billion and $2.3 billion, respectively, due to the infrastructure pause, with estimated FCF over $1 billion each year.

• Free cash flow benefit from LNG export-linked contracts (JKM, TTF) expected to continue through 2026 and 2027.

• Production expected to grow to 800,000 boepd by 2032, with a 4% CAGR from 2026–2032.

• Board intends to declare a quarterly dividend of $0.50/share, payable September 29, 2026.