Tourmaline Oil (TOU) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 production, averaging 666,089 boepd, at the midpoint of guidance despite capital deferrals.

• Largest natural gas producer in Canada and sixth largest in North America, with 6.1 billion Boe 2P reserves and 5.2 million net acres.

• Major NEBC infrastructure projects (Aitken and Groundbirch) remain on schedule for Q4 2026 and Q4 2027 start-ups.

• 2026 and 2027 free cash flow outlook improved to $0.9 billion annually, driven by higher liquids and LNG pricing.

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

Financial highlights

• Q1 2026 cash flow: CAD 862 million ($2.21 per diluted share); free cash flow: CAD 202 million.

• Q1 2026 net earnings: CAD 658 million, up 209% year-over-year ($1.69 per diluted share).

• Net debt at March 31, 2026: CAD 1.5 billion, or 0.4x net debt to cash flow, below long-term target.

• Q1 2026 average production: 666,089 BOE/d, within guidance.

• Q1 OpEx: CAD 4.75/BOE, down 8% year-over-year; full-year 2026 OpEx expected at CAD 4.50/BOE, down 9% from 2025.

Outlook and guidance

• 2026 average production guidance unchanged at 620,000–640,000 BOE/d.

• Full-year 2026 E&P capital budget remains at CAD 2.55 billion after a CAD 350 million reduction.

• Additional CAD 200 million of D&C capital could be deferred if weak gas prices persist.

• 2026 and 2027 free cash flow each anticipated at $0.9 billion, supported by higher condensate, propane, and LNG pricing.

• Production expected to grow to 800,000 boepd by 2030–2031, with 5% CAGR from 2026–2031.