CALGARY, AB, July 28, 2021
/CNW/ - Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline" or the
"Company") is pleased to release financial and operating
results for the second quarter of 2021.
HIGHLIGHTS
- Second quarter 2021 cash flow(1) of $1.89 per diluted share, record free cash
flow(2) of $343.9 million,
and average production of 410,339 boepd, exceeding the high end of
expectations despite challenging operating conditions in June's
heat wave.
- The updated five-year plan, at current strip
pricing(3), delivers $1.8
billion of FCF in 2022 and $7.0
billion over the full five-year duration of the plan.
The 2022 free cash flow equates to over $5.50 per basic share, a FCF yield of
16%(4) and reduces the 2022 total payout
ratio(5) to 48%.
- Received a credit rating upgrade from BBB to BBB (high), in
July 2021, by DBRS Morningstar.
- The Company now expects to achieve year-end 2021 net
debt(6) of approximately $1
billion (less than 0.4 times debt to cash flow, and less
than one times annual FCF). As at July
15, 2021, Tourmaline's Topaz equity ownership was valued at
$939.7 million(7), which
essentially offsets the estimated year-end net debt.
- With incremental volumes on the GTN Malin/PG&E system and
the Company's recently announced Gulf Coast LNG pathway in 2023,
Tourmaline will have 905 mmcfpd exposed to export markets on firm,
long-term transport agreements at exit 2023. Tourmaline's
largest export market, PG&E California, is currently trading at
$5.50/mmbtu (US).
PRODUCTION UPDATE
- Second quarter 2021 average production was 410,339 boepd
(414,387 boepd prior to storage injections in California and Dawn), a 37% increase over Q2
2020 (299,369 boepd).
- The Company anticipates average third quarter production to
range between 450,000 - 460,000 boepd.
- The Company expects to reach the 500,000 boepd production level
in Q2 2022 primarily through the completion of Gundy Phase 2, the
Nig Creek expansion, and the ongoing Laprise development
program.
- 2021 average production of approximately 430,000 – 445,000
boepd is anticipated, including all acquisitions and associated
incremental capital spending on those assets.
FINANCIAL RESULTS
- Second quarter 2021 cash flow was $570.2
million ($1.89 per diluted
share) compared to $225.2 million
($0.83 per diluted share) in Q2
2020.
- Second quarter 2021 after tax net earnings were $420.8 million ($1.40 per diluted share) compared to $20.1 million ($0.07 per diluted share) in second quarter of
2020.
- The Company delivered free cash flow of $343.9 million on EP capital spending of
$215.9 million in Q2 2021.
- Full-year 2021 cash flow of $2.78
billion is now expected with estimated free cash flow of
$1.47 billion.
- The Company received a credit rating upgrade in July 2021, following the close of the Black Swan
acquisition, to BBB (high) from BBB, by DBRS Morningstar, for both
the Issuer Rating and the Senior Unsecured Notes. According
to DBRS Morningstar, the rating upgrades reflect the improvement in
both the Company's business risk and financial risk profiles.
The credit rating upgrade is expected to result in lower
effective interest rates on Company debt which are already
extremely low and in the top tier at 1.72% for the second quarter
of 2021.
CAPITAL PROGRAM AND FINANCIAL OUTLOOK
- Second quarter 2021 EP capital spending was $215.9 million.
- Full-year 2021 EP capital spending of $1.27 billion is currently expected.
- Net debt at June 30, 2021, was
$1.7 billion, which excludes the two
NEBC transactions with Topaz, yielding $390
million in cash, both of which are expected to close in the
third quarter of 2021. Exit Q3 2021 expected net debt is
approximately $1.4 billion, including
the impact of all acquisitions completed to date in 2021. The
Company now expects to achieve year-end 2021 net debt of
approximately $1 billion (less than
0.4 times debt to cash flow, and less than one times annual FCF).
As at July 15, 2021,
Tourmaline's Topaz equity ownership was valued at $939.7 million, which essentially offsets the
estimated 2021 year-end net debt.
- The updated five-year plan, at current strip pricing, delivers
$1.8 billion of FCF in 2022 and
$7.0 billion over the full five-year
duration of the plan.
MARKETING UPDATE
- Average realized natural gas price in Q2 2021 was $3.25/mcf as the Company benefited from rising
commodity prices, select hedging, and the Company's broad natural
gas market diversification portfolio throughout North America.
- Following the Black Swan Energy acquisition, Tourmaline has an
average of 822 mmcfpd hedged for 2021 at a weighted average fixed
price of CAD $2.69/mcf, an average of
125 mmcfpd hedged at a basis to AECO of USD $(0.35) /mcf and an average of 562 mmcf per day
of incremental volume exposed to export markets, including Dawn,
Iroquois, Empress/McNeill,
Chicago, Ventura, Sumas, Malin, and
PG&E.
- With incremental volumes on the GTN Malin/PG&E system and
the Company's recently announced Gulf Coast LNG pathway in 2023,
Tourmaline will have 905 mmcfpd exposed to export markets on firm,
long-term transport agreements at exit 2023.
- The accelerated Gundy Phase 2 expansion project is expected to
be onstream in January 2022 so as to
take advantage of potential winter gas price premiums.
- The PG&E California market continues to be a very strong
market with an average Q2 benchmark price of $4.00/mmbtu (US) and strip pricing at
July 23, 2021 of $5.48/mmbtu (US) for the remainder of 2021.
- NGL price realizations in Q2 2021 were up 130% over Q2 2020.
Tourmaline is Canada's
largest NGL producer, averaging 55,543 bpd during the second
quarter.
EP UPDATE
- Tourmaline drilled 113.75 net wells in 1H 2021 and expects to
drill approximately 250 net wells for full-year 2021, completing
approximately 220 (net) of those wells by year end.
- Tourmaline is currently operating 12 drilling rigs and will add
an additional rig on the former Black Swan lands in September, as
originally planned.
- The Company expects to bring approximately 140 (net) wells
onstream through the balance of 2021.
- Improved time and cost performance for drilling and completion
operations has largely offset modest inflationary cost
pressures.
- Drilling times have been materially reduced in all three core
complexes through the application of multiple evolving
technologies. Recent horizontals in the Laprise BC
Montney area are now being drilled
to TD in five days. Overall, the 2H 2021 EP capital program
is being executed ahead of schedule.
ENVIRONMENTAL PERFORMANCE IMPROVEMENT
- Tourmaline intends to invest $20
- $40 million per year in
environmental performance improvement initiatives, primarily in the
areas of diesel displacement for EP drilling and completion
operations, methane emission reduction and ultimate elimination,
gas plant emission reduction and waste heat recovery installation,
and multiple water management projects. The majority of these
environment-related capital investments do generate a modest
positive return, albeit not as strong as the Company's EP
investments.
- The Company estimates that environmental initiatives to date
have reduced annual emissions by approximately 250,000 tonnes per
year thus far.
- Tourmaline has now installed over 200 zero emission electric
chemical injection pumps with an estimated GHG reduction of 40,000
tonnes CO2e/year.
- The first Tier 4 frac unit has been delivered and will be
pumping on Tourmaline's BC Montney
pads in 2H 2021.
- Evolving zero methane emission technology is being implemented
on all new well sites in all Company operated areas.
- Engineering design has been completed for the NGIF Emissions
testing centre. The East
Edson facility is expected to be fully operational in late
Q3 2021.
_________________________________
|
(1)
|
"Cash flow" is
defined as cash provided by operations before changes in non-cash
operating working capital. See "Non-GAAP Financial Measures"
in this news release and in the Company's Q2 2021 Management's
Discussion and Analysis.
|
(2)
|
"Free cash flow"
or "FCF" is defined as cash flow less total net capital
expenditures. Total net capital expenditures is defined as
total capital spending before acquisitions and non-core
dispositions. Free cash flow is prior to dividend
payments. See "Non-GAAP Financial Measures" in this news
release and the Company's Q2 2021 Management's Discussion and
Analysis.
|
(3)
|
Based on oil and
gas commodity strip pricing at July 15, 2021.
|
(4)
|
Based on a share
price of $34 per common share.
|
(5)
|
The total payout
ratio for 2022 is calculated as the sum of dividends paid and total
net capital spending divided by annual cash flow.
|
(6)
|
"Net debt" is
defined as bank debt and senior unsecured notes plus working
capital deficit (adjusted for the fair value of financial
instruments, short-term lease liabilities, short-term
decommissioning obligations and unrealized foreign exchange in
working capital deficit). See "Non-GAAP Financial Measures" in this
news release and in the Company's Q2 2021 Management's Discussion
and Analysis.
|
(7)
|
Based on a Topaz
closing price on the TSX of $16.16 per common share.
|
CORPORATE SUMMARY – SECOND QUARTER 2021
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
2020
|
Change
|
|
2021
|
2020
|
Change
|
OPERATIONS
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
Natural gas
(mcf/d)
|
1,915,630
|
1,425,199
|
34%
|
|
1,916,633
|
1,449,940
|
32%
|
Crude oil, condensate
and NGL (bbl/d)
|
91,067
|
61,836
|
47%
|
|
91,516
|
62,203
|
47%
|
Oil equivalent
(boe/d)
|
410,339
|
299,369
|
37%
|
|
410,955
|
303,860
|
35%
|
Product
prices(1)
|
|
|
|
|
|
|
|
Natural gas
($/mcf)
|
$
|
3.25
|
$
|
2.41
|
35%
|
|
$
|
3.55
|
$
|
2.43
|
46%
|
Crude oil, condensate
and NGL ($/bbl)
|
$
|
42.84
|
$
|
23.24
|
84%
|
|
$
|
41.95
|
$
|
28.93
|
45%
|
Operating expenses
($/boe)
|
$
|
3.70
|
$
|
3.06
|
21%
|
|
$
|
3.67
|
$
|
3.01
|
22%
|
Transportation costs
($/boe)
|
$
|
3.99
|
$
|
4.60
|
(13)%
|
|
$
|
4.17
|
$
|
4.48
|
(7)%
|
Operating
netback(3) ($/boe)
|
$
|
15.47
|
$
|
8.20
|
89%
|
|
$
|
16.58
|
$
|
9.51
|
74%
|
Cash general and
administrative
expenses ($/boe)(2)
|
$
|
0.56
|
$
|
0.63
|
(11)%
|
|
$
|
0.59
|
$
|
0.60
|
(2)%
|
FINANCIAL
($000, except share and per share)
|
|
|
|
|
|
|
|
Total revenue from
commodity sales and realized gains
|
921,278
|
443,553
|
108%
|
|
1,926,542
|
968,468
|
99%
|
Royalties
|
56,547
|
11,375
|
397%
|
|
110,323
|
28,304
|
290%
|
Cash
flow(3)
|
570,232
|
225,177
|
153%
|
|
1,199,557
|
508,895
|
136%
|
Cash flow per share
(diluted)(3)
|
$
|
1.89
|
$
|
0.83
|
128%
|
|
$
|
4.00
|
$
|
1.88
|
113%
|
Net earnings
(loss)
|
420,849
|
20,106
|
1,993%
|
|
668,686
|
(15,706)
|
4,358%
|
Net earnings (loss)
per share (diluted)
|
$
|
1.40
|
$
|
0.07
|
1,900%
|
|
$
|
2.23
|
$
|
(0.06)
|
3,817%
|
Capital expenditures
(net of dispositions)
|
664,696
|
140,032
|
375%
|
|
1,086,802
|
457,646
|
137%
|
Weighted average
shares outstanding (diluted)
|
|
|
|
|
299,967,134
|
270,858,022
|
11%
|
Net
debt(3)
|
|
|
|
|
(1,728,794)
|
(1,689,823)
|
2%
|
(1)
|
Product prices
include realized gains and losses on risk management and financial
instrument contracts.
|
(2)
|
Excluding interest
and financing charges.
|
(3)
|
See "Non-GAAP
Financial Measures" in this news release and in the Company's Q2
2021 Management's Discussion and Analysis.
|
Conference Call Tomorrow at 9:00 a.m. MT
(11:00 a.m. ET)
Tourmaline will host a conference call tomorrow, July 29, 2021 starting at 9:00 a.m. MT (11:00 a.m.
ET). To participate, please dial 1-888-664-6383
(toll-free in North America), or
international dial-in 416-764-8650, a few minutes prior to the
conference call.
Conference ID is 49598553.
Reader Advisories
CURRENCY
All amounts in this news release are stated in Canadian dollars
unless otherwise specified.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information and
statements (collectively, "forward-looking information") within the
meaning of applicable securities laws. The use of any of the words
"forecast", "expect", "anticipate", "continue", "estimate",
"objective", "ongoing", "on track", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information. More particularly
and without limitation, this news release contains forward-looking
information concerning Tourmaline's plans and other aspects of its
anticipated future operations, management focus, objectives,
strategies, financial, operating and production results and
business opportunities, including the following: anticipated
petroleum and natural gas production and production growth for
various periods including estimated production levels for 2021 and
beyond; expected FCF in 2022 and in the aggregate over the duration
of the full five-year plan; expected total payout ratio in 2022;
anticipated third quarter production levels and expected production
levels in 2021 and 2022; expected full-year 2021 EP capital
spending levels; the number of expected wells to be brought
onstream through the balance of 2021; the amount of capital to be
invested in environmental performance improvement initiatives
including diesel displacement for EP drilling and completion
operations, methane emission reduction and ultimate elimination,
gas plant emission reduction and waste heat recovery installation,
and multiple water management projects; estimates of the annual
emission reductions to date; the timing for the East Edson facility to become fully
operational; targeted 2021 exit net debt to cash flow ratio;
statements relating to the five-year plan; the future declaration
and payment of dividends and the timing and amount thereof
including any future increase; cash flow and free cash flow levels;
production levels supported by certain of the Company's reserves
and drilling inventory; capital spending over various periods; cost
reduction initiatives; improvements in capital efficiency;
projected operating and drilling costs; the timing for facility
expansions and facility start-up dates; sustainability and
environmental improvement initiatives; anticipated future commodity
prices including the expectation for future increases above current
levels; the ability to generate, and the amount of, anticipated
cash flow and free cash flow including in 2021 and over the
five-year plan; as well as Tourmaline's future drilling prospects
and plans, business strategy, future development and growth
opportunities, prospects and asset base. The forward-looking
information is based on certain key expectations and assumptions
made by Tourmaline, including expectations and assumptions
concerning the following: prevailing and future commodity prices
and currency exchange rates; prevailing and future commodity prices
and currency exchange rates; applicable royalty rates and tax laws;
interest rates; future well production rates and reserve volumes;
operating costs, the timing of receipt of regulatory approvals; the
performance of existing wells; the success obtained in drilling new
wells; anticipated timing and results of capital expenditures; the
sufficiency of budgeted capital expenditures in carrying out
planned activities; the timing, location and extent of future
drilling operations; the successful completion of acquisitions and
dispositions and the benefits to be derived therefrom; the state of
the economy and the exploration and production business; the
availability and cost of financing, labour and services; and
ability to market crude oil, natural gas and NGL successfully.
Without limitation of the foregoing, future dividend payments, if
any, and the level thereof is uncertain, as the Company's dividend
policy and the funds available for the payment of dividends from
time to time is dependent upon, among other things, free cash flow,
financial requirements for the Company's operations and the
execution of its growth strategy, fluctuations in working capital
and the timing and amount of capital expenditures, debt service
requirements and other factors beyond the Company's control.
Further, the ability of Tourmaline to pay dividends will be subject
to applicable laws (including the satisfaction of the solvency test
contained in applicable corporate legislation) and contractual
restrictions contained in the instruments governing its
indebtedness, including its credit facility.
Statements relating to "reserves" are also deemed to be forward
looking information, as they involve the implied assessment, based
on certain estimates and assumptions, that the reserves described
exist in the quantities predicted or estimated and that the
reserves can be profitably produced in the future.
Although Tourmaline believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking information because Tourmaline can give no
assurances that it will prove to be correct. Since forward-looking
information addresses future events and conditions, by its very
nature it involves inherent risks and uncertainties. Actual results
could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to:
the risks associated with the oil and natural gas industry in
general such as operational risks in development, exploration and
production; delays or changes in plans with respect to exploration
or development projects or capital expenditures; the uncertainty of
estimates and projections relating to reserves, production,
revenues, costs and expenses; health, safety and environmental
risks; commodity price and exchange rate fluctuations; interest
rate fluctuations; marketing and transportation; loss of markets;
environmental risks; competition; incorrect assessment of the value
of acquisitions; failure to complete or realize the anticipated
benefits of acquisitions or dispositions; ability to access
sufficient capital from internal and external sources; failure to
obtain required regulatory and other approvals; and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations.
In addition, pandemics, epidemics or outbreaks of an infectious
disease in Canada or worldwide,
including COVID-19 or other illnesses could have an adverse impact
on the Company's results, business, financial condition or
liquidity. If the pandemic is further prolonged, including through
subsequent waves, or if additional variants of COVID-19 emerge
which are more transmissible or cause more severe disease, or if
other diseases emerge with similar effects, the adverse impact on
the economy could worsen. It remains uncertain how the
macroeconomic environment, and societal and business norms will be
impacted following this COVID-19 pandemic. Unexpected developments
in financial markets, regulatory environments, or consumer
behaviour may also have adverse impacts on the Company's results,
business, financial condition or liquidity, for a substantial
period of time. The Company's business, financial condition,
results of operations, cash flows, reputation, access to capital,
cost of borrowing, access to liquidity, and/or business plans may,
in particular, and without limitation, be adversely impacted as a
result of the pandemic and/or decline in commodity prices as a
result of: the shut-down of facilities or the delay or
suspension of work on major capital projects due to workforce
disruption or labour shortages caused by workers becoming infected
with COVID-19, or government or health authority mandated
restrictions on travel by workers or closure of facilities or
worksites; suppliers and third-party vendors experiencing
similar workforce disruption or being ordered to cease
operations; reduced cash flows resulting in less funds from
operations being available to fund capital expenditure
budgets; reduced commodity prices resulting in a reduction in
the volumes and value of reserves; crude oil storage
constraints resulting in the curtailment or shutting in of
production; counterparties being unable to fulfill their
contractual obligations on a timely basis or at all; the
inability to deliver products to customers or otherwise get
products to market caused by border restrictions, road or port
closures or pipeline shut-ins, including as a result of pipeline
companies suffering workforce disruptions or otherwise being unable
to continue to operate; and the ability to obtain additional
capital including, but not limited to, debt and equity financing
being adversely impacted as a result of unpredictable financial
markets, commodity prices and/or a change in market fundamentals.
The COVID-19 pandemic has also created additional operational risks
for the Company, including the need to provide enhanced safety
measures for its employees and customers; comply with rapidly
changing regulatory guidance; address the risk of, attempted
fraudulent activity and cybersecurity threat behaviour; and protect
the integrity and functionality of the Company's systems, networks,
and data as a larger number of employees work remotely. The Company
is also exposed to human capital risks due to issues related to
health and safety matters, and other environmental stressors as a
result of measures implemented in response to the COVID-19
pandemic, as well as the potential for a significant proportion of
the Company's employees, including key executives, to be unable to
work effectively, because of illness, quarantines,
sheltering-in-place arrangements, government actions or other
restrictions in connection with the pandemic. The extent to which
the COVID-19 pandemic continues to impact the Company's results,
business, financial condition or liquidity will depend on future
developments in Canada, the U.S.
and globally, including the development and widespread availability
of efficient and accurate testing options, and effective treatment
options or vaccines. Despite the approval of certain vaccines by
the regulatory bodies in Canada
and the U.S., the ongoing evolution of the development and
distribution of an effective vaccine also continues to raise
uncertainty.
Readers are cautioned that the foregoing list of factors is not
exhaustive.
Additional information on these and other factors that could
affect Tourmaline, or its operations or financial results, are
included in the Company's most recently filed Management's
Discussion and Analysis (See "Forward-Looking Statements" therein),
Annual Information Form (See "Risk Factors" and "Forward-Looking
Statements" therein) and other reports on file with applicable
securities regulatory authorities and may be accessed through the
SEDAR website (www.sedar.com) or Tourmaline's website
(www.tourmalineoil.com).
The forward-looking information contained in this news release
is made as of the date hereof and Tourmaline undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless expressly required by applicable securities
laws.
BOE EQUIVALENCY
In this news release, production and reserves information may be
presented on a "barrel of oil equivalent" or "BOE" basis. BOEs may
be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. In
addition, as the value ratio between natural gas and crude oil
based on the current prices of natural gas and crude oil is
significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value.
FINANCIAL OUTLOOKS
Also included in this news release are estimates of Tourmaline's
Q3 2021 exit net debt, 2021 exit net debt and net debt-to-cash flow
ratio as well as 2021 – 2025 cash flow and free cash flow, which
are based on, among other things, the various assumptions as to
production levels, capital expenditures, annual cash flows and
other assumptions disclosed in this news release and including
Tourmaline's estimated average production of 435,000 boepd for 2021
and 495,000, 515,000, 540,000 and 560,000 boepd for 2022 - 2025,
respectively. Commodity price assumptions for natural gas
(NYMEX (US) - $3.21/mcf, $3.20/mcf, $2.81/mcf, $2.72/mcf and $2.74/mcf for 2021 – 2025, respectively; AECO -
$3.47/mcf, $3.16/mcf, $2.66/mcf, $2.59/mcf and $2.71/mcf for 2021 – 2025, respectively), and
crude oil (WTI (US) - $66.02/bbl,
$65.10/bbl, $60.39/bbl, $56.99/bbl and $54.76/bbl for 2021 – 2025, respectively) and an
exchange rate assumption of $0.80
(CAD/US) for 2021. 0.79 for 2022 – 2024 and $0.78 for 2025. Further, in the case of years
subsequent to 2021, readers are cautioned that such estimates are
provided for illustration only and are based on budgets and
forecasts that have not been finalized and are subject to a variety
of additional factors and contingencies including prior years'
results. To the extent such estimates constitute financial
outlooks, they were approved by management and the Board of
Directors of Tourmaline on July 28,
2021 and are included to provide readers with an
understanding of Tourmaline's anticipated cash flow and free cash
flow based on the capital expenditure, production and other
assumptions described herein and readers are cautioned that the
information may not be appropriate for other purposes.
NON-GAAP FINANCIAL MEASURES
This news release includes references to "free cash flow", "cash
flow", and "net debt" which are financial measures commonly used in
the oil and gas industry and do not have a standardized meaning
prescribed by International Financial Reporting Standards ("GAAP").
Accordingly, the Company's use of these terms may not be comparable
to similarly defined measures presented by other companies.
Management uses the term "free cash flow", "cash flow", and "net
debt" for its own performance measures and to provide shareholders
and potential investors with a measurement of the Company's
efficiency and its ability to generate the cash necessary to fund a
portion of its future growth expenditures, to pay dividends or to
repay debt. Investors are cautioned that these non-GAAP measures
should not be construed as an alternative to net income or cash
from operating activities determined in accordance with GAAP as an
indication of the Company's performance. Free cash flow is
calculated as cash flow less total net capital expenditures and is
prior to dividend payments. Net capital expenditures is defined as
the sum of E&P capital program and other corporate
expenditures, net of non-core dispositions. See "Non-GAAP
Financial Measures" in the most recent Management's Discussion and
Analysis for the definition and description of these terms.
OIL AND GAS METRICS
This news release contains certain oil and gas metrics which do
not have standardized meanings or standard methods of calculation
and therefore such measures may not be comparable to similar
measures used by other companies and should not be used to make
comparisons. Such metrics have been included in this document to
provide readers with additional measures to evaluate the Company's
performance; however, such measures are not reliable indicators of
the Company's future performance and future performance may not
compare to the Company's performance in previous periods and
therefore such metrics should not be unduly relied upon.
SUPPLEMENTAL INFORMATION REGARDING PRODUCT TYPES
This news release includes references to Q2 2021 average daily
production, Q3 2021 expected average daily production, Q2 2022
daily production and total 2021 average daily production. The
following table is intended to provide supplemental information
about the product type composition for each of the production
figures that are provided in this news release:
|
Light and
Medium
Crude Oil(1)
|
|
Conventional
Natural Gas
|
|
Shale Natural
Gas
|
|
Natural Gas
Liquids(1)
|
|
Oil Equivalent
Total
|
|
Company Gross
(Bbls)
|
|
Company Gross
(Mcf)
|
|
Company Gross
(Mcf)
|
|
Company Gross
(Bbls)
|
|
Company Gross
(Boe)
|
Q2 2021 Average Daily
Production
|
35,524
|
|
1,223,192
|
|
692,438
|
|
55,543
|
|
410,339
|
Q3 2021 Expected
Average Daily Production
|
38,180
|
|
1,234,830
|
|
874,530
|
|
65,260
|
|
455,000
|
Q2 2022 Daily
Production
|
40,500
|
|
1,261,650
|
|
1,048,350
|
|
74,500
|
|
500,000
|
2021 Average Daily
Production
|
36,900
|
|
1,233,900
|
|
784,500
|
|
61,700
|
|
435,000
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For the purposes
of this disclosure, condensate has been combined with Light and
Medium Crude Oil as the associated revenues and certain costs of
condensate are similar to Light and Medium Crude Oil.
Accordingly, NGLs in this disclosure exclude
condensate.
|
CREDIT RATINGS
Credit ratings are intended to provide investors with an
independent measure of credit quality of an issue of securities.
Credit ratings are not recommendations to purchase, hold or sell
securities and do not address the market price or suitability of a
specific security for a particular investor. There is no assurance
that any rating will remain in effect for any given period of time
or that any rating will not be revised or withdrawn entirely
by a rating agency in the future if, in its judgment, circumstances
so warrant.
GENERAL
See also "Forward-Looking Statements", and "Non-GAAP Financial
Measures" in the most recently filed Management's Discussion and
Analysis.
CERTAIN DEFINITIONS:
1H
|
first half
|
2H
|
second
half
|
bbl
|
barrel
|
bbls/day
|
barrels per
day
|
bbl/mmcf
|
barrels per million
cubic feet
|
bcf
|
billion cubic
feet
|
bcfe
|
billion cubic feet
equivalent
|
bpd or
bbl/d
|
barrels per
day
|
boe
|
barrel of oil
equivalent
|
boepd or
boe/d
|
barrel of oil
equivalent per day
|
bopd or
bbl/d
|
barrel of oil,
condensate or liquids per day
|
DUC
|
drilled but
uncompleted wells
|
EP
|
exploration and
production
|
gj
|
gigajoule
|
gjs/d
|
gigajoules per
day
|
mbbls
|
thousand
barrels
|
mmbbls
|
million
barrels
|
mboe
|
thousand barrels of
oil equivalent
|
mboepd
|
thousand barrels of
oil equivalent per day
|
mcf
|
thousand cubic
feet
|
mcfpd or
mcf/d
|
thousand cubic feet
per day
|
mcfe
|
thousand cubic feet
equivalent
|
mmboe
|
million barrels of
oil equivalent
|
mmbtu
|
million British
thermal units
|
mmbtu/d
|
million British
thermal units per day
|
mmcf
|
million cubic
feet
|
mmcfpd or
mmcf/d
|
million cubic feet
per day
|
MPa
|
megapascal
|
mstb
|
thousand stock tank
barrels
|
natural
gas
|
conventional natural
gas and shale gas
|
NCIB
|
normal course issuer
bid
|
NGL or
NGLs
|
natural gas
liquids
|
tcf
|
trillion cubic
feet
|
MANAGEMENT'S DISCUSSION AND ANALYSIS AND CONSOLIDATED
FINANCIAL STATEMENTS
To view Tourmaline's Management's Discussion and Analysis and
Interim Condensed Consolidated Financial Statements for the periods
ended June 30, 2021 and 2020, please
refer to SEDAR (www.sedar.com) or Tourmaline's website at
www.tourmalineoil.com.
ABOUT TOURMALINE OIL CORP.
Tourmaline is an investment grade Canadian senior crude oil and
natural gas exploration and production company focused on providing
strong and predictable long-term growth and a steady return to
shareholders through an aggressive exploration, development,
production and acquisition program in the Western Canadian
Sedimentary Basin by building its extensive asset base in its three
core exploration and production areas and exploiting and developing
these areas to increase reserves, production and cash flows at an
attractive return on invested capital.
SOURCE Tourmaline Oil Corp.