Canada's Tourmaline Oil Q3 earnings jump
Overview
Canada natural gas producer's Q3 net earnings rose 237% yr/yr to C$641.5 mln
Q3 production fell 6% yr/yr due to deferrals and storage injections for higher future prices
Company raised quarterly base dividend by 5% and repurchased 1.3 mln shares in Q4
Outlook
Tourmaline expects Q4 2026 average production of 635,000–645,000 boepd
Company anticipates 2026 exit production of 670,000 boepd or greater, including storage withdrawals
Tourmaline forecasts 2027 free cash flow of C$1.8 bln at current strip pricing, up 71% from July estimate
Result Drivers
STORAGE INJECTIONS AND DEFERRALS - Co said Q3 production was slightly below guidance due to deferrals and storage injections to capture higher expected prices in Q4 and Q1 2027
HIGHER REALIZED NATURAL GAS PRICES - Co benefited from average realized natural gas prices significantly above the AECO 5A benchmark due to its diversified marketing and hedging
LOWER OPERATING COSTS - Operating costs fell 7% yr/yr, contributing to improved margins
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | C$1.64 | ||
Q3 Net Income | C$641.50 mln | ||
Q3 Cash Flow Per Share | C$2.02 | ||
Q3 Net Debt | C$1.54 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Tourmaline Oil Corp is C$70.00, about 5.6% above its November 3 closing price of C$66.28
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Nov 3 - Canada's Suncor Q3 adjusted operating earnings jump on higher upstream prices
Nov 4 - Canada's Vermilion Energy posts Q3 net loss, plans 4% dividend hike
Nov 3 - Ovintiv Q3 profit rises on higher energy prices, lower costs
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)