Canada NewsWire
CALGARY, AB, March 2, 2022
CALGARY, AB, March 2, 2022 /CNW/ - Tourmaline Oil Corp. (TSX:TOU) ("Tourmaline" or the "Company") is pleased to release financial and operating results for the full year and fourth quarter of 2021 as well as 2021 reserves.
HIGHLIGHTS
PRODUCTION UPDATE
FINANCIAL HIGHLIGHTS
2021/2022 BUDGET AND OUTLOOK
2021 RESERVES
MARKETING UPDATE
EP UPDATE
EXPLORATION PROGRAM
ACQUISITION UPDATE
SUSTAINABILITY AND ENVIRONMENTAL PERFORMANCE IMPROVEMENT
DIVIDEND
___________ | |
(1) | This news release contains certain specified financial measures consisting of non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures. See "Non-GAAP and Other Financial Measures" in this news release for information regarding the following non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release: "cash flow", "capital expenditures", "free cash flow", "operating netback", "operating netback per boe", "cash flow per boe", "adjusted working capital" and "net debt". Since these specified financial measures do not have standardized meanings under International Financial Reporting Standards ("GAAP"), securities regulations require that, among other things, they be identified, defined, qualified and, where required, reconciled with their nearest GAAP measure and compared to the prior period. See "Non-GAAP and Other Financial Measures" in this news release and in the Company's Management's Discussion and Analysis for the year ended December 31, 2021 (the "Annual MD&A"),which information is incorporated by reference into this news release, for further information on the composition of and, where required, reconciliation of these measures. |
(2) | "Cash flow per diluted share" is a non-GAAP financial ratio. Cash flow, a non-GAAP financial measure, is used as a component of the non-GAAP financial ratio. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(3) | "Free cash flow" is a non-GAAP financial measure defined as cash flow less capital expenditures, excluding acquisitions and dispositions. Free cash flow is prior to dividend payments. See "Non-GAAP and Other Financial Measures" in this news release. |
(4) | "Net debt" is a capital management measure. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(5) | 2P, TP and PDP reserve value per share is calculated as the before tax net present value of the reserves at December 31, 2021 discounted at 10% divided by total diluted shares outstanding at December 31, 2021. |
(6) | Supplementary financial measure. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(7) | Supplementary financial measure. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(8) | Total revenue from commodity sales and premium (loss) on risk management activities and realized gain (loss) on financial instruments. |
(9) | Based on oil and gas commodity strip pricing at February 15, 2022. |
(10) | Non-GAAP financial ratio. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(11) | Non-GAAP financial ratio. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. The recycle ratio is calculated by dividing the cash flow per boe by the appropriate F&D or FD&A costs related to the reserve additions for that year. |
(12) | Non-GAAP financial ratio. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(13) | Non-GAAP financial ratio. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(14) | Capital efficiencies are calculated as capital expenditures divided by estimated production added over the period. |
CORPORATE SUMMARY – DECEMBER 31, 2021
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||
OPERATIONS | |||||||||||
Production | |||||||||||
Natural gas (mcf/d) | 2,269,290 | 1,592,010 | 43% | 2,063,455 | 1,476,613 | 40% | |||||
Crude oil, condensate and NGL (bbl/d) | 106,863 | 70,990 | 51% | 97,206 | 64,496 | 51% | |||||
Oil equivalent (boe/d) | 485,078 | 336,325 | 44% | 441,115 | 310,598 | 42% | |||||
Product prices(1) | |||||||||||
Natural gas ($/mcf) | $ | 4.66 | $ | 3.19 | 46% | $ | 3.94 | $ | 2.68 | 47% | |
Crude oil, condensate and NGL ($/bbl) | $ | 56.66 | $ | 33.85 | 67% | $ | 47.89 | $ | 30.87 | 55% | |
Operating expenses ($/boe) (2) | $ | 3.95 | $ | 3.25 | 22% | $ | 3.77 | $ | 3.14 | 20% | |
Transportation costs ($/boe) (3) | $ | 4.45 | $ | 4.42 | 1% | $ | 4.25 | $ | 4.48 | (5)% | |
Operating netback ($/boe) (4) | $ | 22.10 | $ | 13.65 | 62% | $ | 18.57 | $ | 10.93 | 70% | |
Cash general and | $ | 0.49 | $ | 0.50 | (2)% | $ | 0.54 | $ | 0.56 | (4)% | |
FINANCIAL | |||||||||||
Total revenue from commodity sales and realized gains | 1,529,345 | 688,374 | 122% | 4,669,263 | 2,174,903 | 115% | |||||
Royalties | 168,168 | 28,623 | 488% | 387,914 | 65,523 | 492% | |||||
Cash flow | 968,236 | 396,869 | 144% | 2,929,126 | 1,185,687 | 147% | |||||
Cash flow per share (diluted) | $ | 2.88 | $ | 1.44 | 100% | $ | 9.25 | $ | 4.36 | 112% | |
Net earnings | 996,248 | 629,191 | 58% | 2,025,991 | 618,311 | 228% | |||||
Net earnings per share (diluted) | $ | 2.96 | $ | 2.28 | 30% | $ | 6.40 | $ | 2.27 | 182% | |
Capital expenditures (net of dispositions)(6) | 447,461 | 271,284 | 65% | 1,590,371 | 1,083,625 | 47% | |||||
Weighted average shares outstanding (diluted) | 316,788,967 | 272,079,590 | 16% | ||||||||
Net debt | (972,979) | (1,784,920) | (45)% | ||||||||
PROVED + | |||||||||||
Natural gas (bcf) | 19,487.1 | 15,459.2 | 26% | ||||||||
Crude oil (mbbls) | 98,345 | 102,843 | (4)% | ||||||||
Natural gas liquids (mbbls) | 896,793 | 634,890 | 41% | ||||||||
Mboe | 4,242,981 | 3,314,264 | 28% |
(1) | Product prices include realized gains and losses on risk management activities and financial instrument contracts. |
(2) | Supplementary financial measure. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(3) | Supplementary financial measure. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(4) | Excluding interest and financing charges. Non-GAAP financial measure and non-GAAP ratio. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(5) | Non-GAAP financial measure and non-GAAP ratio. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(6) | Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. |
(7) | Reserves are "Company gross reserves", which are defined as the working interest share of reserves prior to the deduction of interest owned by others (burdens). Royalty interest reserves are not included in Company gross reserves. |
2021 RESERVE SUMMARY
The following tables summarize the Company's gross reserves defined as the working interest share of reserves prior to the deduction of interest owned by others (burdens). Royalty interest reserves are not included in Company gross reserves. Company net reserves are defined as the working net carried and royalty interest reserves after deduction of all applicable burdens.
Reserves and Future Net Revenue Data (Forecast Prices and Costs)
Summary of Crude Oil, Natural Gas and Natural Gas Liquids Reserves and
Net Present Values of Future Net Revenue
as of December 31, 2021
Forecast Prices and Costs(1)
Light & Medium Crude | Conventional Natural | Shale Natural Gas(2) | Natural Gas Liquids | Total Oil Equivalent | ||||||||||||||||
Reserves Category | Company | Company | Company | Company | Company | Company | Company | Company | Company (Mboe) | Company Net (Mboe) | ||||||||||
Proved Producing | 13,666 | 11,294 | 2,316,261 | 2,081,062 | 2,151,299 | 1,759,736 | 189,034 | 156,708 | 947,293 | 808,135 | ||||||||||
Proved Developed Non-Producing | 1,695 | 1,263 | 56,830 | 51,128 | 291,228 | 243,333 | 17,399 | 14,473 | 77,104 | 64,812 | ||||||||||
Proved Undeveloped | 35,322 | 28,459 | 2,290,336 | 2,071,498 | 3,089,713 | 2,554,843 | 231,476 | 196,134 | 1,163,473 | 995,650 | ||||||||||
Total Proved | 50,682 | 41,016 | 4,663,427 | 4,203,689 | 5,532,239 | 4,557,912 | 437,910 | 367,315 | 2,187,870 | 1,868,597 | ||||||||||
Total Probable | 47,662 | 38,626 | 3,098,317 | 2,773,983 | 6,193,076 | 5,006,345 | 458,883 | 373,721 | 2,055,111 | 1,709,069 | ||||||||||
Total Proved Plus Probable | 98,345 | 79,642 | 7,761,744 | 6,977,672 | 11,725,316 | 9,564,257 | 896,793 | 741,036 | 4,242,981 | 3,577,666 |
Net Present Values of Future Net Revenue ($000s) | |||||||||||||||||||||||||||||
Before Income Taxes Discounted at (2) | After Income Taxes Discounted at (2) (3) | Unit Value Before | |||||||||||||||||||||||||||
Reserves Category | 0 | 5 | 8 | 10 | 15 | 20 | 0 | 5 | 8 | 10 | 15 | 20 | ($/Boe) | ($/Mcfe) | |||||||||||||||
Proved Producing | 15,895,760 | 13,323,539 | 12,106,290 | 11,411,616 | 9,996,380 | 8,984,527 | 13,793,015 | 11,724,576 | 10,726,715 | 10,153,628 | 8,978,499 | 8,079,741 | 14.12 | 2.35 | |||||||||||||||
Proved Developed Non-Producing | 1,862,980 | 1,352,921 | 1,156,872 | 1,054,529 | 864,456 | 735,753 | 1,435,838 | 1,027,731 | 874,366 | 795,234 | 650,130 | 552,567 | 16.27 | 2.71 | |||||||||||||||
Proved Undeveloped | 20,460,819 | 12,839,140 | 10,095,313 | 8,717,048 | 6,278,640 | 4,863,857 | 15,379,706 | 9,540,902 | 7,435,008 | 6,377,707 | 4,510,673 | 3,327,238 | 8.76 | 1.46 | |||||||||||||||
Total Proved | 38,219,559 | 27,515,600 | 23,358,475 | 21,183,193 | 17,139,476 | 14,584,136 | 30,608,559 | 22,293,210 | 19,036,089 | 17,326,568 | 14,139,302 | 11,959,545 | 11.34 | 1.89 | |||||||||||||||
Total Probable | 39,372,998 | 19,788,766 | 14,264,392 | 11,773,086 | 7,807,442 | 5,744,160 | 29,287,702 | 14,637,854 | 10,499,401 | 8,634,477 | 5,671,909 | 4,005,961 | 6.89 | 1.15 | |||||||||||||||
Total Proved Plus Probable | 77,592,557 | 47,304,365 | 37,622,867 | 32,956,279 | 24,946,918 | 20,328,297 | 59,896,260 | 36,931,063 | 29,535,490 | 25,961,045 | 19,811,211 | 15,965,506 | 9.21 | 1.54 |
Notes: | |
(1) | Numbers may not add due to rounding. |
(2) | Shale Natural Gas is required to be presented separately from Conventional Natural Gas as its own product type pursuant to National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). While the Tourmaline Montney reserves do not strictly fit the definition of "shale gas" as defined in NI 51-101 because the natural gas is not "primarily adsorbed" as stated within the definition, the Montney reserves have been included as shale gas for purposes of this disclosure. |
(3) | The after-tax net present value of the Company's oil and gas properties reflects the tax burden on the properties on a stand-alone basis. It does not consider the Company's tax situation, or tax planning. It does not provide an estimate of the value at the Company level which may be significantly different. The Company's financial statements and management's discussion and analysis should be consulted for information at the Company level. |
Total Future Net Revenue ($000s)
(Undiscounted)
as of December 31, 2021
Forecast Prices and Costs(1)
Reserves Category | Revenue | Royalties | Operating | Capital | Abandonment | Future Net | Income | Future Net | ||||||||
Proved Producing | 25,765,001 | 2,433,456 | 6,626,387 | 970 | 808,427 | 15,895,760 | 2,102,746 | 13,793,015 | ||||||||
Proved Developed Non-Producing | 2,643,209 | 210,932 | 438,012 | 104,091 | 27,195 | 1,862,980 | 427,141 | 1,435,838 | ||||||||
Proved Undeveloped | 35,978,182 | 3,195,226 | 6,318,605 | 5,691,019 | 312,513 | 20,460,819 | 5,081,114 | 15,379,706 | ||||||||
Total Proved | 64,386,393 | 5,839,614 | 13,383,004 | 5,796,080 | 1,148,135 | 38,219,559 | 7,611,001 | 30,608,559 | ||||||||
Total Probable | 66,737,385 | 7,554,755 | 14,085,762 | 5,232,675 | 491,196 | 39,372,998 | 10,085,296 | 29,287,702 | ||||||||
Total Proved Plus Probable | 131,123,778 | 13,394,369 | 27,468,766 | 11,028,755 | 1,639,331 | 77,592,557 | 17,696,296 | 59,896,260 |
Notes: | |
(1) | Numbers may not add due to rounding. |
(2) | Abandonment and Reclamation Costs includes all active and inactive assets, with or without associated reserves, inclusive of all wells (existing and undrilled), facilities and pipelines. |
(3) | The after-tax net present value of the Company's oil and gas properties reflects the tax burden on the properties on a stand-alone basis. It does not consider the Company's tax situation, or tax planning. It does not provide an estimate of the value at the Company level, which may be significantly different. The Company's financial statements and management's discussion and analysis should be consulted for information at the Company level. |
Summary of Pricing and Inflation Rate Assumptions
Forecast Prices and Costs (1)
Crude Oil and Natural Gas Liquids Pricing | |||||||||||||||||||
NYMEX WTI Near |
MSW, Light | Alberta Natural Gas Liquids | |||||||||||||||||
Year | Inflation(2) % | CAD/USD | Constant | Then | Spec | Edmonton | Edmonton | Edmonton | |||||||||||
2022 | 0.0 | 0.7967 | 72.83 | 72.83 | 86.82 | 11.48 | 43.39 | 57.49 | 91.85 | ||||||||||
2023 | 2.3 | 0.7967 | 67.21 | 68.78 | 80.73 | 10.33 | 35.92 | 50.17 | 85.53 | ||||||||||
2024 | 2.0 | 0.7967 | 63.96 | 66.76 | 78.01 | 9.81 | 34.62 | 48.53 | 82.98 | ||||||||||
2025 | 2.0 | 0.7967 | 63.95 | 68.09 | 79.57 | 10.01 | 35.31 | 49.50 | 84.63 | ||||||||||
2026 | 2.0 | 0.7967 | 63.96 | 69.45 | 81.16 | 10.22 | 36.02 | 50.49 | 86.33 | ||||||||||
2027 | 2.0 | 0.7967 | 63.95 | 70.84 | 82.78 | 10.42 | 36.74 | 51.50 | 88.05 | ||||||||||
2028 | 2.0 | 0.7967 | 63.96 | 72.26 | 84.44 | 10.64 | 37.47 | 52.53 | 89.82 | ||||||||||
2029 | 2.0 | 0.7967 | 63.95 | 73.70 | 86.13 | 10.86 | 38.22 | 53.58 | 91.61 | ||||||||||
2030 | 2.0 | 0.7967 | 63.95 | 75.18 | 87.85 | 11.08 | 38.99 | 54.65 | 93.44 | ||||||||||
2031 | 2.0 | 0.7967 | 63.95 | 76.68 | 89.60 | 11.31 | 39.77 | 55.74 | 95.32 | ||||||||||
2032 | 2.0 | 0.7967 | 63.95 | 78.21 | 91.40 | 11.53 | 40.56 | 56.86 | 97.22 | ||||||||||
2033 | 2.0 | 0.7967 | 63.96 | 79.78 | 93.23 | 11.77 | 41.37 | 58.00 | 99.17 | ||||||||||
2034 | 2.0 | 0.7967 | 63.96 | 81.38 | 95.09 | 12.00 | 42.20 | 59.15 | 101.15 | ||||||||||
2035 | 2.0 | 0.7967 | 63.96 | 83.00 | 96.99 | 12.24 | 43.04 | 60.34 | 103.17 | ||||||||||
2036 | 2.0 | 0.7967 | 63.96 | 84.66 | 98.93 | 12.49 | 43.91 | 61.54 | 105.24 | ||||||||||
2037 | 2.0 | 0.7967 | 63.96 | +2.0%/yr | +2.0%/yr | +2.0%/yr | +2.0%/yr | +2.0%/yr | +2.0%/yr |
Natural Gas and Sulphur Pricing | ||||||||||||||||||||||
Alberta Plant Gate | British Columbia | |||||||||||||||||||||
NYMEX Henry Hub | Midwest | AECO/NIT Spot |
Dawn Price @ Ontario Then | Spot | ||||||||||||||||||
Year | Constant | Then Current | Constant 2021 | Then Current | ARP $Cdn/ | Sumas Spot | Westcoast | Spot Plant | ||||||||||||||
2022 | 3.85 | 3.85 | 3.71 | 3.56 | 3.78 | 3.31 | 3.31 | 3.29 | 3.66 | 3.48 | 3.23 | |||||||||||
2023 | 3.36 | 3.44 | 3.30 | 3.20 | 3.37 | 2.89 | 2.96 | 2.93 | 3.28 | 3.14 | 2.89 | |||||||||||
2024 | 3.04 | 3.17 | 3.03 | 3.05 | 3.10 | 2.68 | 2.80 | 2.77 | 3.01 | 2.98 | 2.73 | |||||||||||
2025 | 3.04 | 3.24 | 3.09 | 3.10 | 3.16 | 2.68 | 2.86 | 2.83 | 3.07 | 3.04 | 2.79 | |||||||||||
2026 | 3.04 | 3.30 | 3.16 | 3.17 | 3.23 | 2.69 | 2.92 | 2.89 | 3.14 | 3.10 | 2.85 | |||||||||||
2027 | 3.04 | 3.37 | 3.22 | 3.23 | 3.29 | 2.69 | 2.98 | 2.95 | 3.20 | 3.16 | 2.91 | |||||||||||
2028 | 3.04 | 3.44 | 3.29 | 3.30 | 3.36 | 2.69 | 3.04 | 3.01 | 3.26 | 3.22 | 2.97 | |||||||||||
2029 | 3.04 | 3.51 | 3.36 | 3.36 | 3.43 | 2.70 | 3.11 | 3.08 | 3.33 | 3.29 | 3.04 | |||||||||||
2030 | 3.04 | 3.57 | 3.43 | 3.43 | 3.49 | 2.69 | 3.17 | 3.14 | 3.40 | 3.35 | 3.10 | |||||||||||
2031 | 3.04 | 3.65 | 3.50 | 3.50 | 3.57 | 2.70 | 3.24 | 3.21 | 3.47 | 3.42 | 3.17 | |||||||||||
2032 | 3.04 | 3.72 | 3.57 | 3.57 | 3.64 | 2.70 | 3.30 | 3.28 | 3.54 | 3.49 | 3.23 | |||||||||||
2033 | 3.04 | 3.79 | 3.64 | 3.64 | 3.71 | 2.70 | 3.37 | 3.34 | 3.61 | 3.56 | 3.29 | |||||||||||
2034 | 3.04 | 3.87 | 3.71 | 3.71 | 3.78 | 2.70 | 3.44 | 3.41 | 3.68 | 3.63 | 3.36 | |||||||||||
2035 | 3.04 | 3.95 | 3.79 | 3.79 | 3.86 | 2.70 | 3.51 | 3.48 | 3.76 | 3.70 | 3.43 | |||||||||||
2036 | 3.04 | 4.03 | 3.87 | 3.86 | 3.94 | 2.70 | 3.58 | 3.55 | 3.83 | 3.78 | 3.49 | |||||||||||
2037 | 3.04 | +2.0%/yr | +2.0%/yr | +2.0%/yr | +2.0%/yr | 2.70 | +2.0%/yr | +2.0%/yr | +2.0%/yr | +2.0%/yr | +2.0%/yr | |||||||||||
Notes: | |
(1) | Crude oil and natural gas benchmark reference pricing, inflation and exchange rates utilized by GLJ in the GLJ Reserve Report and Deloitte in the Deloitte Reserve Report, were an average of forecast prices and costs published by Sproule Associates Ltd. as at December 31, 2021 and GLJ and McDaniel & Associates Consultants Ltd. as at January 1, 2022 (each of which is available on their respective websites at www.sproule.com, www.gljpc.com, and www.mcdan.com). GLJ assigns a value to the Company's existing physical diversification contracts for natural gas for consuming markets at Dawn, Chicago, Ventura, Malin, PG&E, Iroquois, Kingsgate, US Gulf Coast and JKM based on forecasted differentials to NYMEX Henry Hub as per the aforementioned consultant average price forecast, contracted volumes and transportation costs. No incremental value is assigned to potential future contracts which were not in place as of December 31, 2021. |
(2) | Inflation rates used for forecasting prices and costs. |
(3) | Exchange rates used to generate the benchmark reference prices in this table. |
RESERVES PERFORMANCE RATIOS
The following tables highlight Tourmaline's reserves, F&D and FD&A costs as well as the associated recycle ratios.
Reserves, Capital Expenditures and Cash Flow(1)
As at December 31, | 2021 | 2020 | 2019 |
Reserves (Mboe) | |||
Proved Producing | 947,293 | 736,448 | 527,361 |
Total Proved | 2,187,870 | 1,691,056 | 1,294,439 |
Proved Plus Probable | 4,242,981 | 3,314,264 | 2,601,928 |
Capital Expenditures ($ millions) | |||
Exploration and Development(2) | 1,437 | 912 | 1,069 |
Net Property Acquisitions (Dispositions)(3) | 196 | 172 | 219 |
Net Corporate Acquisitions (Dispositions)(3) | 1,232 | 794 | - |
Less: Topaz Property Acquisitions(4) | (161) | (119) | - |
Total(5) | 2,704 | 1,759 | 1,287 |
Cash Flow ($/boe) | |||
Cash Flow | 18.19 | 10.43 | 11.36 |
Cash Flow - Three Year Average | 13.97 | 11.67 | 12.75 |
Notes: | |
(1) | Cash flow is defined as cash provided by operations before changes in non-cash operating working capital. See "Non-GAAP and Other Financial Measures" below and in the Annual MD&A for further discussion. |
(2) | Includes capitalized G&A of $38 million, $32 million and $30 million for 2021, 2020 and 2019 respectively. |
(3) | Includes purchase price (cash and/or common shares) plus net debt, if applicable. |
(4) | Includes property acquisitions incurred by Topaz from non-related parties, prior to June 8, 2021, when it was a controlled subsidiary of Tourmaline. |
(5) | Represents the capital expenditures used for purposes of F&D and FD&A calculations. |
Finding and Development Costs
Finding and Development Costs, Excluding FDC | 2021 | 2020 | 2019 | 3-Year Avg. |
Total Proved | ||||
Reserve Additions (MMboe) | 257.6 | 185.4 | 160.7 | |
F&D Costs ($/boe) | 5.58 | 4.92 | 6.65 | 5.66 |
F&D Recycle Ratio(1) | 3.3 | 2.1 | 1.7 | 2.5 |
Total Proved Plus Probable | ||||
Reserve Additions (MMboe) | 232.2 | 210.5 | 180.4 | |
F&D Costs ($/boe) | 6.19 | 4.33 | 5.92 | 5.48 |
F&D Recycle Ratio(1) | 2.9 | 2.4 | 1.9 | 2.5 |
Finding and Development Costs, Including FDC | 2021 | 2020 | 2019 | 3-Year Avg. |
Total Proved | ||||
Change in FDC ($ millions) | 197.2 | (286.0) | (275.2) | |
Reserve Additions (MMboe) | 257.6 | 185.4 | 160.7 | |
F&D Costs ($/boe) | 6.34 | 3.38 | 4.94 | 5.06 |
F&D Recycle Ratio(1) | 2.9 | 3.1 | 2.3 | 2.8 |
Total Proved Plus Probable | ||||
Change in FDC ($ millions) | 41.6 | (566.3) | (589.4) | |
Reserve Additions (MMboe) | 232.2 | 210.5 | 180.4 | |
F&D Costs ($/boe) | 6.37 | 1.64 | 2.66 | 3.70 |
F&D Recycle Ratio(1) | 2.9 | 6.4 | 4.3 | 3.8 |
Finding, Development and Acquisition Costs
Finding, Development and Acquisition Costs, | 2021 | 2020 | 2019 | 3-Year Avg. |
Total Proved | ||||
Reserve Additions (MMboe) | 657.8 | 510.3 | 194.2 | |
FD&A Costs ($/boe) | 4.11 | 3.45 | 6.63 | 4.22 |
FD&A Recycle Ratio(1) | 4.4 | 3.0 | 1.7 | 3.3 |
Total Proved Plus Probable | ||||
Reserve Additions (MMboe) | 1,089.7 | 826.0 | 250.7 | |
FD&A Costs ($/boe) | 2.48 | 2.13 | 5.13 | 2.65 |
FD&A Recycle Ratio(1) | 7.3 | 4.9 | 2.2 | 5.3 |
Finding, Development and Acquisition Costs, | 2021 | 2020 | 2019 | 3-Year Avg. |
Total Proved | ||||
Change in FDC ($ millions) | 1,201.1 | 723.3 | (93.4) | |
Reserve Additions (MMboe) | 657.8 | 510.3 | 194.2 | |
FD&A Costs ($/boe) | 5.94 | 4.86 | 6.15 | 5.57 |
FD&A Recycle Ratio(1) | 3.1 | 2.1 | 1.8 | 2.5 |
Total Proved Plus Probable | ||||
Change in FDC ($ millions) | 2,241.2 | 1,383.5 | (218.0) | |
Reserve Additions (MMboe) | 1,089.7 | 826.0 | 250.7 | |
FD&A Costs ($/boe) | 4.54 | 3.80 | 4.26 | 4.23 |
FD&A Recycle Ratio(1) | 4.0 | 2.7 | 2.7 | 3.3 |
Note: | |
(1) | The recycle ratio is calculated by dividing the cash flow per boe by the appropriate F&D or FD&A costs related to the reserve additions for that year. |
Conference Call Tomorrow at 9:00 a.m. MT (11:00 a.m. ET)
Tourmaline will host a conference call tomorrow, March 3, 2022 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 1-416-764-8650, a few minutes prior to the conference call.
Conference ID is 68524395.
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 2022 and beyond; expected free cash flow and cash flow levels for 2022 and beyond; targeted 2022 exit net debt to cash flow ratio; 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 expenditures 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 2022 and over the five year development plan; expectations that in 2023 Tourmaline will become the first Canadian EP company participating in the LNG business with full exposure to JKM pricing; the anticipated amount to be invested per year on environmental performance improvement initiatives; 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 and interest rates; applicable royalty rates and tax laws; 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; ability to maintain its investment grade credit rating; 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; climate change risks; inflation; supply chain risks and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
In addition, wars (including Russia's military actions in Ukraine), hostilities, civil insurrections, 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. Ongoing military actions between Russia and Ukraine have the potential to threaten the supply of oil and gas from the region. The long-term impacts of the actions between these nations remains uncertain. 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 the COVID-19 pandemic.
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.
RESERVES DATA
The reserves data set forth above is based upon the reports of GLJ Ltd. ("GLJ") and Deloitte LLP, each dated effective December 31, 2021, which have been consolidated into one report by GLJ and adjusted to apply certain of GLJ's assumptions and methodologies and pricing and cost assumptions. The price forecast used in the reserve evaluations is an average of the January 1, 2022 price forecasts for GLJ, Sproule Associates Ltd. and McDaniel & Associates Consultants Ltd., each of which is available on their respective websites, www.gljpc.com, www.sproule.com and www.mcdan.com, and will be contained in the Company's Annual Information Form for the year ended December 31, 2021, which will be filed on SEDAR (accessible at www.sedar.com) on or before March 31, 2022.
There are numerous uncertainties inherent in estimating quantities of crude oil, natural gas and NGL reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable crude oil, natural gas and NGL reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially. For those reasons, estimates of the economically recoverable crude oil, NGL and natural gas reserves attributable to any particular group of properties, classification of such reserves based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. The Company's actual production, revenues, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material.
All evaluations and reviews of future net revenue are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. The after-tax net present value of the Company's oil and gas properties reflects the tax burden on the properties on a stand-alone basis and utilizes the Company's tax pools. It does not consider the corporate tax situation, or tax planning. It does not provide an estimate of the after-tax value of the Company, which may be significantly different. The Company's financial statements and the management's discussion and analysis should be consulted for information at the level of the Company.
The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to effects of aggregations. The estimated values of future net revenue disclosed in this news release do not represent fair market value. There is no assurance that the forecast prices and cost assumptions used in the reserve evaluations will be attained and variances could be material.
The reserve data provided in this news release presents only a portion of the disclosure required under National Instrument 51-101. All of the required information will be contained in the Company's Annual Information Form for the year ended December 31, 2021, which will be filed on SEDAR (accessible at www.sedar.com) on or before March 31, 2022.
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.
INDUSTRY METRICS
This news release contains metrics commonly used in the oil and natural gas industry. Each of these metrics is determined by the Company as set out below or elsewhere in this news release. These metrics are "reserve replacement", "F&D" costs, "FD&A" costs, "recycle ratio", "F&D recycle ratio", and "FD&A recycle ratio". These metrics are considered "non-GAAP ratios" and do not have standardized meanings and may not be comparable to similar measures presented by other companies. As such, they should not be used to make comparisons. See "Non-GAAP and Other Financial Measures" in this news release and in the Annual MD&A. The non-GAAP financial measures used as a component of these non-GAAP ratios are capital expenditures and cash flow.
Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare the Company's performance over time, however, such measures are not reliable indicators of the Company's future performance and future performance may not compare to the performance in previous periods.
"F&D" costs are calculated by dividing the sum of the total capital expenditures for the year (in dollars) by the change in reserves within the applicable reserves category (in boe). F&D costs, including FDC, includes all capital expenditures in the year as well as the change in FDC required to bring the reserves within the specified reserves category on production.
"FD&A" costs are calculated by dividing the sum of the total capital expenditures for the year inclusive of the net acquisition costs and disposition proceeds (in dollars) by the change in reserves within the applicable reserves category inclusive of changes due to acquisitions and dispositions (in boe). FD&A costs, including FDC, includes all capital expenditures in the year inclusive of the net acquisition costs and disposition proceeds as well as the change in FDC required to bring the reserves within the specified reserves category on production.
The "recycle ratio" is calculated by dividing the cash flow per boe by the appropriate F&D or FD&A costs related to the reserve additions for that year.
The Company uses F&D and FD&A as a measure of the efficiency of its overall capital program including the effect of acquisitions and dispositions. The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.
FINANCIAL OUTLOOKS
Also included in this news release are estimates of Tourmaline's 2022 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 2022 production of 500,000 boepd, 2022 commodity price assumptions for natural gas (NYMEX (US) - $4.49/mcf; AECO - $4.20/mcf) crude oil (WTI (US) - $83.95/bbl) and an exchange rate assumption of $0.79 (US/CAD). To the extent such estimates constitute financial outlooks, they were approved by management and the Board of Directors of Tourmaline on March 2, 2022 and are included to provide readers with an understanding of Tourmaline's anticipated cash flow and free cash flow based on the capital expenditure, production and other assumptions described herein and readers are cautioned that the information may not be appropriate for other purposes.
NON-GAAP AND OTHER FINANCIAL MEASURES
This news release contains the terms cash flow, capital expenditures, free cash flow, and operating netback which are considered "non-GAAP financial measures" and cash flow per diluted share, operating netback per boe, cash flow per boe, finding and development costs, finding, development and acquisition costs and recycle ratio, which are considered "non-GAAP ratios". These terms do not have a standardized meaning prescribed by GAAP. In addition, this news release contains the terms adjusted working capital and net debt, which are considered "capital management measures" and do not have standardized meanings prescribed by GAAP. This news release also contains the terms reserve value per diluted share, operating expenses ($/boe), and transportation costs ($/boe), which are considered "supplementary financial measures" and do not have standardized meanings prescribed by GAAP. Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Investors are cautioned that these measures should not be construed as an alternative to net income determined in accordance with GAAP and these measures should not be considered to be more meaningful than GAAP measures in evaluating the Company's performance.
Non-GAAP Financial Measures
Cash Flow
Management uses the term "cash flow" for its own performance measure 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 its future growth expenditures, to repay debt or to pay dividends. The most directly comparable GAAP measure for cash flow is cash flow from operating activities. A summary of the reconciliation of cash flow from operating activities to cash flow, is set forth below:
Three Months Ended | Years Ended | |||||||
(000s) | 2021 | 2020 | 2021 | 2020 | ||||
Cash flow from operating activities (per GAAP) | $ | 1,058,460 | $ | 326,526 | $ | 2,847,117 | $ | 1,125,136 |
Change in non-cash working capital (deficit) | (90,224) | 70,343 | 82,009 | 60,551 | ||||
Cash flow | $ | 968,236 | $ | 396,869 | $ | 2,929,126 | $ | 1,185,687 |
Capital Expenditures
Management uses the term "capital expenditures" as a measure of capital investment in exploration and production activity, as well as property acquisitions and divestitures, and such spending is compared to the Company's annual budgeted capital expenditures. The most directly comparable GAAP measure for capital expenditures is cash flow used in investing activities. A summary of the reconciliation of cash flow used in investing activities to capital expenditures, is set forth below:
Three Months Ended | Years Ended | |||||||
(000s) | 2021 | 2020 | 2021 | 2020 | ||||
Cash flow used in investing activities (per GAAP) | $ | 468,384 | $ | 326,526 | $ | 1,380,111 | $ | 1,162,271 |
Corporate acquisitions | - | (73,750) | - | (100,822) | ||||
Proceeds from sale of investments | - | - | 103,824 | - | ||||
Change in non-cash working capital (deficit) | (20,923) | 794 | 106,436 | 22,176 | ||||
Capital expenditures | $ | 447,461 | $ | 271,284 | $ | 1,590,371 | $ | 1,083,625 |
Free Cash Flow
Management uses the term "free cash flow" for its own performance measure 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 its future growth expenditures, to repay debt and provide shareholder returns. Free cash flow is defined as cash flow less capital expenditures, excluding acquisitions and dispositions. Free cash flow is prior to dividend payment. The most directly comparable GAAP measure for cash flow is cash flow from operating activities. See "Non-GAAP Financial Measures – Cash Flow" and " Non-GAAP Financial Measures – Capital Expenditures" above.
Operating Netback
Management uses the term "operating netback" as a key performance indicator and one that is commonly presented by other oil and natural gas producers. Operating netback is defined as the sum of commodity sales from production, premium (loss) on risk management activities and realized gains (loss) on financial instruments less the sum of royalties, transportation costs and operating expenses. A summary of the reconciliation of operating netback from commodity sales from production, which is a GAAP measure, is set forth below:
Three Months Ended | Years Ended | |||||||
($/boe) | 2021 | 2020 | 2021 | 2020 | ||||
Commodity sales from production | $ | 1,709,063 | $ | 688,269 | $ | 5,053,611 | $ | 2,200,911 |
Premium (loss) on risk management activities | 21,579 | (10,913) | 13,943 | (106,001) | ||||
Realized gain (loss) on financial instruments | (201,297) | 11,018 | (398,291) | 79,993 | ||||
Royalties | (168,168) | (28,623) | (387,914) | (65,523) | ||||
Transportation costs | (198,537) | (136,875) | (683,737) | (509,520) | ||||
Operating expenses | (176,360) | (100,590) | (607,292) | (356,674) | ||||
Operating netback | $ | 986,280 | $ | 422,286 | $ | 2,990,320 | $ | 1,243,186 |
Non-GAAP Financial Ratios
Operating Netback per-boe
Management calculates "operating netback per-boe" as operating netback divided by total production for the period. Netback per-boe is a key performance indicator and measure of operational efficiency and one that is commonly presented by other oil and natural gas producers. A summary of the calculation of operating netback per boe, is set forth below:
Three Months Ended | Years Ended | |||||||
($/boe) | 2021 | 2020 | 2021 | 2020 | ||||
Revenue, excluding processing income | $ | 34.27 | $ | 22.25 | $ | 29.00 | $ | 19.13 |
Royalties | (3.77) | (0.93) | (2.41) | (0.58) | ||||
Transportation costs | (4.45) | (4.42) | (4.25) | (4.48) | ||||
Operating expenses | (3.95) | (3.25) | (3.77) | (3.14) | ||||
Operating netback | $ | 22.10 | $ | 13.65 | $ | 18.57 | $ | 10.93 |
Cash Flow per-boe
Management uses cash flow per boe to highlight how much cash flow is generated by each boe produced. The ratio is calculated by dividing cash flow by total production for the period. See "Non-GAAP Financial Measures – Cash Flow". See "Reserve Performance Ratios" section for information on annual cash flow per boe and comparative period data used.
Capital Management Measures
Adjusted Working Capital
Management uses the term "adjusted working capital" for its own performance measures and to provide shareholders and potential investors with a measurement of the Company's liquidity. A summary of the composition of adjusted working capital (deficit), is set forth below:
As at December 31, | ||||
(000s) | 2021 | 2020 | ||
Working capital (deficit) | $ | (361,034) | $ | 111,744 |
Fair value of financial instruments – short-term liability | 240,970 | 36,115 | ||
Lease liabilities – short-term | 2,997 | 3,412 | ||
Decommissioning obligations – short-term | 20,103 | 4,618 | ||
Unrealized foreign exchange in working capital – (asset) liability | (6,441) | 1,450 | ||
Adjusted working capital (deficit) | $ | (103,405) | $ | 157,339 |
Net Debt
Management uses the term "net debt", as a key measure for evaluating its capital structure and to provide shareholders and potential investors with a measurement of the Company's total indebtedness. A summary of the composition of net debt, is set forth below:
As at December 31, | ||||
(000s) | 2021 | 2020 | ||
Bank debt | $ | (421,539) | $ | (1,942,259) |
Senior unsecured notes | (448,035) | - | ||
Adjusted working capital (deficit) | (103,405) | 157,339 | ||
Net debt | $ | (972,979) | $ | (1,784,920) |
Supplementary Financial Measures
The following measures are supplementary financial measures: reserve value per diluted share, operating expenses ($/boe), and transportation costs ($/boe). These measures are calculated by dividing the numerator by a diluted share count or by total production for the period, depending on the financial measure discussed.
Finding and Development Costs, Finding, Development and Acquisition Costs and Recycle Ratio
See "Reserves Performance Ratios" and "Industry Metrics" for information on the composition of, the non-GAAP financial measures used as a component of and comparative period data for finding and development costs, finding, development and acquisition costs and recycle ratio.
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.
ESTIMATES OF DRILLING LOCATIONS
Unbooked drilling locations are the internal estimates of Tourmaline based on Tourmaline's prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources (including contingent and prospective). Unbooked locations have been identified by Tourmaline's management as an estimation of Tourmaline's multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that Tourmaline will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and natural gas reserves, resources or production. The drilling locations on which Tourmaline will actually drill wells, including the number and timing thereof is ultimately dependent upon the availability of funding, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While a certain number of the unbooked drilling locations have been de-risked by Tourmaline drilling existing wells in relative close proximity to such unbooked drilling locations, the majority of other unbooked drilling locations are farther away from existing wells where management of Tourmaline has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.
SUPPLEMENTAL INFORMATION REGARDING PRODUCT TYPES
This news release includes references to 2021 average daily production, Q4 2021 average daily production, current average daily production, Q1 2022 average daily production and 2022 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 | Conventional | Shale Natural Gas | Natural Gas | Oil Equivalent | ||||||
Company Gross | Company Gross | Company Gross | Company Gross | Company Gross | ||||||
2021 Annual Production | 13,725,460 | 462,324,351 | 290,836,724 | 21,754,730 | 161,007,036 | |||||
2021 Average Daily Production | 37,604 | 1,266,642 | 796,813 | 59,602 | 441,115 | |||||
Q4 2021 Average Daily Production | 40,880 | 1,299,980 | 969,310 | 65,983 | 485,078 | |||||
Current Average Daily Production | 42,000 | 1,280,000 | 1,060,000 | 73,000 | 505,000 | |||||
2022 Average Daily Production | 42,600 | 1,225,000 | 1,084,000 | 72,600 | 500,000 |
(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. |
INITIAL PRODUCTION RATES
Any references in this news release to initial production rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.
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 and Other 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 Consolidated Financial Statements for the years ended December 31, 2021 and 2020, please refer to SEDAR (www.sedar.com) or Tourmaline's website at www.tourmalineoil.com.
ABOUT TOURMALINE OIL CORP.
Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest-emission and lowest-cost natural gas in North America. We are an investment grade exploration and production company providing strong and predictable operating and financial performance through the development of our three core areas in the Western Canadian Sedimentary Basin. With our existing large reserve base, decades-long drilling inventory, relentless focus on execution and cost management, and industry-leading environmental performance, we are excited to provide shareholders an excellent return on capital, and an attractive source of income through our base dividend and surplus free cash flow distribution strategies.
SOURCE Tourmaline Oil Corp.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2022/02/c8391.html
We use cookies to tailor your experience, measure site performance and present relevant offers and advertisements. By clicking ‘Accept’ or any content on this site, you agree that cookies can be placed on your browser. You can view our privacy policy to learn more.
If you would like to get more data, alerts and access to Real Vision videos, join us as an Insider Tracking Advantage Ultra member