Q1 2025 Tourmaline Oil Corp Earnings Call Transcript
Key Points
- Tourmaline Oil Corp (TRMLF) reported an 8% increase in average production for Q1 2025 compared to Q1 2024, reaching 638,000 BOEs per day.
- The company generated $963 million in cash flow for Q1 2025, with a net free cash flow of $150 million.
- Tourmaline Oil Corp (TRMLF) declared a special dividend of $0.35 per share and plans a quarterly dividend of $0.50 per share.
- The company is strategically consolidating the Northeast BC Montney, a profitable gas play, and expanding its infrastructure ahead of expected improvements in natural gas markets.
- Tourmaline Oil Corp (TRMLF) has entered into agreements for two acquisitions in the North Montney and South Montney, adding significant production and reserves potential.
- Q2 2025 production is expected to decrease to between 615,000 and 625,000 BOEs per day due to maintenance and weaker prices.
- First quarter earnings were $213 million, or $0.56 per fully diluted share, which may not meet some investor expectations.
- The company plans to defer some Q2 frac activity to Q3 due to weak gas prices, potentially impacting short-term production growth.
- Tourmaline Oil Corp (TRMLF) faces backwardation in the strip pricing, affecting long-term free cash flow projections.
- The company issued stock for recent acquisitions, which may dilute existing shareholders, instead of using cash despite a strong balance sheet.
Good morning, ladies and gentlemen, and welcome to the Tourmaline Q1 2025 results conference call. (Operator Instructions)
This call is being recorded on Thursday, May 8, 2025. I would now like to turn the conference over to Scott Kirker. Please go ahead.
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Thank you, operator, and welcome everyone to our discussion of Tourmaline's financial and operating results as it March 31, 2025, for the three months ended March 31, 2025 and 2024. My name is Scott Kirker. I'm the Chief Legal Officer here at Tourmaline Oil.
Before we get started, I refer you to the advisories on overlooking statements contained in the news release, as well as the advisories contained in the Tourmaline annual information form and our MDNA available on SEDAR and on our website. I also draw your attention to the material factors and assumptions in those advisories.
I'm here with Mike Rose, Tourmaline's President and Chief Executive Officer; Brian Robinson,
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