Tourmaline Oil (TOU) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 average production of 638,000 BOE/d, up 8% year-over-year and above guidance.

• Two NEBC Montney acquisitions will add 20,000 BOE/d and up to 369.4 million BOE of 2P reserves, closing in June 2025.

• Board declared a special dividend of $0.35/share and intends a quarterly dividend of $0.50/share.

• Largest natural gas producer in Canada and fourth largest in North America, with 5.5 billion BOE 2P reserves and 24.8 Tcf gas reserves.

• Peer-leading cash flow growth, free cash flow generation, and lowest capital cost operator in the basin.

Financial highlights

• Q1 2025 cash flow was $963 million ($2.56/diluted share), up 11% year-over-year.

• Free cash flow for Q1 2025 was $149.1 million; H1 2025 estimate: $430 million.

• Q1 2025 net earnings were $212.7 million ($0.56/diluted share), a 13% decrease year-over-year.

• 2025E cash flow: $3.9 billion; free cash flow: $960 million; net debt: $1.84 billion as of March 31, 2025.

• Average realized natural gas price in Q1 was $4.30/MCF, $2.11/MCF above AECO 5A benchmark.

Outlook and guidance

• 2025 production guidance remains 635,000–665,000 BOE/d; Q2 2025 production expected at 615,000–625,000 BOE/d due to maintenance.

• 2025 cash flow expected at $3.9 billion and free cash flow at $960 million, based on strip pricing.

• Anticipates higher free cash flow in H2 2025 with LNG Canada startup and improved commodity prices.

• Multi-year EP plan update, including recent acquisitions and infrastructure build-out, to be released in H2 2025.

• Long-term plan targets >10% shareholder returns, evolving with business and commodity cycles.