Canada NewsWire
CALGARY, May 8, 2019
CALGARY, May 8, 2019 /CNW/ - Tourmaline Oil Corp. (TSX:TOU) ("Tourmaline" or the "Company") is pleased to release financial and operating results for the first quarter of 2019.
HIGHLIGHTS
PRODUCTION UPDATE
Q1 2019 FINANCIAL RESULTS
2019 CAPITAL PROGRAM
DIVIDEND
COST MANAGEMENT
GUNDY B.C. PROJECT UPDATE
SUNRISE-DOE COMPLEX
________________________________________ | |
(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 Q1 2019 Management's Discussion and Analysis. |
(2) | "See "Non-GAAP Financial Measures" in this news release and the Company's Q1 2019 Management's Discussion and Analysis. |
(3) | "Free cash flow" 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 Q1 2019 Management's Discussion and Analysis. |
(4) | "General and administrative expenses" ("G&A") exclude interest and financing charges. |
(5) | "Net debt" is defined as bank debt plus working capital (adjusted for the fair value of financial instruments and lease liabilities). See "Non-GAAP Financial Measures" in this news release and in the Company's Q1 2019 Management's Discussion and Analysis. |
CORPORATE SUMMARY – FIRST QUARTER 2019 | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | Change | |||||
OPERATIONS | |||||||
Production | |||||||
Natural gas (mcf/d) | 1,439,212 | 1,328,733 | 8% | ||||
Crude oil, condensate and NGL (bbl/d) | 53,565 | 47,070 | 14% | ||||
Oil equivalent (boe/d) | 293,434 | 268,526 | 9% | ||||
Product prices(1) | |||||||
Natural gas ($/mcf) | $ | 3.59 | $ | 2.97 | 21% | ||
Crude oil, condensate and NGL ($/bbl) | $ | 41.43 | $ | 46.08 | (10)% | ||
Operating expenses ($/boe) | $ | 3.49 | $ | 3.36 | 4% | ||
Transportation costs ($/boe) | $ | 3.81 | $ | 3.32 | 15% | ||
Operating netback(3) ($/boe) | $ | 16.65 | $ | 15.25 | 9% | ||
Cash general and | $ | 0.46 | $ | 0.48 | (4)% | ||
FINANCIAL | |||||||
Total revenue from commodity sales | 664,301 | 550,166 | 21% | ||||
Royalties | 31,623 | 20,119 | 57% | ||||
Cash flow(3) | 419,242 | 352,248 | 19% | ||||
Cash flow per share (diluted)(3) | $ | 1.54 | $ | 1.30 | 18% | ||
Net earnings | 87,710 | 129,588 | (32)% | ||||
Net earnings per share (diluted) | $ | 0.32 | $ | 0.48 | (33)% | ||
Capital expenditures (net of dispositions) | 384,384 | 217,551 | 77% | ||||
Weighted average shares outstanding (diluted) | 272,043,159 | 271,083,946 | -% | ||||
Net debt(3) | (1,713,032) | (1,623,620) | 6% |
(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 Q1 2019 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, May 9, 2019 starting at 9:00 a.m. MT (11:00 a.m. ET). To participate, please dial 1-888-231-8191 (toll-free in North America), or international dial-in 647-427-7450, a few minutes prior to the conference call.
Conference ID is 2877142.
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 2019; the future declaration and payment of dividends and the timing and amount thereof including any future increase; cash flow; cash flow per share; free cash flow; net debt-to-cash flow levels; production levels supported by certain of the Company's reserves and drilling inventory; capital spending; cost reduction initiatives; projected operating and drilling costs including anticipated reductions in operating costs per boe; the timing for facility expansions and facility start-up dates; 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 including in the case of 2019 production estimates, commodity price assumptions for natural gas (NYMEX (US) - $3.00/mcf for 2019, AECO - $1.80/mcf for 2019), and crude oil (WTI (US) - $60.00/bbl for 2019) and an exchange rate assumption of $0.77 (US/CAD) for 2019; 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; 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 statements, 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 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. 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.
NON-GAAP FINANCIAL MEASURES
This news release includes references to "free cash flow", "cash flow", "net debt" and "net capital expenditures" 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 financial measures presented by other companies. Management uses the term "free cash flow", "cash flow", "net debt" and "net capital expenditures" 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 financial 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. Cash flow is defined as cash provided by operations before changes in non-cash operating working capital. Net debt is defined as bank debt plus working capital (adjusted for the fair value of financial instruments and lease liabilities). 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 recently filed Management's Discussion and Analysis for additional information regarding these non-GAAP financial measures including reconciliations to the most directly comparable GAAP financial measures.
BOE EQUIVALENCY
Per barrel of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent (6:1). Barrel of oil equivalents (boe) 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.
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.
GENERAL
See also "Forward-Looking Statements", and "Non-GAAP Financial Measures" in the most recently filed Management's Discussion and Analysis.
CERTAIN DEFINITIONS: | ||
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 | |
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 | |
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 March 31, 2019 and 2018, please refer to SEDAR (www.sedar.com) or Tourmaline's website at www.tourmalineoil.com.
About Tourmaline Oil Corp.
Tourmaline is a Canadian senior crude oil and natural gas exploration and production company focused on long-term growth through an aggressive exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin.
SOURCE Tourmaline Oil Corp.
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