TOURMALINE DELIVERS RECORD CASH FLOW, FREE CASH FLOW AND EARNINGS IN 2022, INCREASES 2P RESERVES TO 4.5 BILLION BOE AND DECLARES DIVIDEND FOR Q1 2023

CALGARY, AB, Mar. 1, 2023 /CNW/ – Tourmaline Oil Corp. (TSX:TOU.TO) (“Tourmaline” or the “Company”) is pleased to release financial and operating results for the full year and fourth quarter of 2022, as well as 2022 reserves.

Read more at newswire.ca

HIGHLIGHTS

• Full-year 2022 cash flow⁽¹⁾ (“CF”) was a record $4.9 billion ($14.26 per diluted share⁽²⁾) up 67% over 2021. Fourth quarter 2022 CF was $1.4 billion ($4.08 per diluted share).
  
• Tourmaline generated a record $3.2 billion of free cash flow⁽³⁾ (“FCF”) in 2022.
  
• Full-year 2022 after tax net earnings were $4.5 billion ($13.10 per diluted share).
  
• Tourmaline paid $7.90/share in base and special dividends to shareholders in 2022, a 12% trailing yield⁽⁴⁾ based on an average 2022 share price of $66.94.
  
• Tourmaline’s proved plus probable (“2P”) reserve value per diluted share⁽⁵⁾⁽⁶⁾ before tax is $143 ($109 after tax) using the January 1, 2023 engineering price deck and a 10% discount rate. Total proved (“TP”) and proved, developed producing (“PDP”) reserve values per diluted share are $97 and $54 before tax, respectively ($75 and $44 after tax, respectively) using the same pricing and discount rates.
  
• Full-year 2022 average production of 500,832 boepd was up 14% over 2021 average production of 441,115 boepd.
  
• Current production is ranging between 520,000-530,000 boepd, consistent with the expected first quarter average.
  
• At current strip pricing⁽⁷⁾, the Company expects to generate 2023 cash flow of $3.8 billion ($11.12 per diluted share) and free cash flow of $2.0 billion ($5.72 per diluted share) on unchanged EP capital expenditures⁽⁸⁾ of $1.675 billion (as per January 12, 2023 news release). Based on a current share price of $60, Tourmaline is trading at an approximate 10% free cash flow yield⁽⁹⁾.
  
• Exit 2022 net debt⁽¹⁰⁾ was $494 million (0.1 times Q4 2022 annualized cash flow) and well below the Company’s long-term net debt target of $1.0-1.2 billion.
  
• Year-end 2022 PDP reserves of 1.001 billion boe were up 25%, TP reserves of 2.32 billion boe were up 14% and 2P reserves of 4.50 billion boe were up 10% over year-end 2021, after including 2022 annual production of 183 million boe.
  
• Tourmaline replaced 240% of its 2022 annual production of 183 million boe with 2P additions of 440 million boe including 2022 production, with 88% of the addition from the organic EP program.
  
• After 14 years of operations, Tourmaline now has 20.7 Tcf of 2P natural gas reserves, the largest in Canada and one of the largest, lowest development cost, lowest emission natural gas reserve bases in North America.
  
• In January 2023, Tourmaline began delivering gas to the US Gulf Coast, becoming the first Canadian EP company participating in the LNG business with full exposure to JKM (Japan Korea Marker) pricing.