Q2 2024 Tourmaline Oil Corp (Alberta) Earnings Call Transcript
Key Points
- Tourmaline Oil Corp (TRMLF) reported a 13% increase in second-quarter average production compared to the same period last year, reaching 562,000 boes per day.
- The company generated strong free cash flow of $434 million in Q2 2024, allowing for a 3% increase in the quarterly base dividend.
- Tourmaline Oil Corp (TRMLF) reduced its net debt by $137 million during the second quarter, aligning with its long-term net debt target.
- The company has successfully diversified its market exposure, achieving an average realized natural gas price significantly higher than the AECO 5A index price.
- Tourmaline Oil Corp (TRMLF) is advancing its North Montney development, with key facility components expected to add significant production capacity in the coming years.
- The company revised its full-year 2024 average production guidance down by 5,000 boes per day due to select third-quarter frac deferrals.
- Tourmaline Oil Corp (TRMLF) is operating in an extremely weak natural gas pricing environment, which could impact future profitability.
- Despite strong free cash flow, the company cannot fund all initiatives, leading to prioritization of debt reduction and dividends over other investments.
- The company faces potential challenges in maintaining production growth if natural gas prices do not improve as anticipated.
- Tourmaline Oil Corp (TRMLF) has significant exposure to AECO and Station 2, which are subject to volatile pricing conditions.
Good morning, ladies and gentlemen, and welcome to the Tourmaline Q2 2024 results conference call. (Operator Instructions) This call is being recorded on Thursday, August 1, 2024.
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 at June 30, 2024, and for the three and six months ended June 30, 2024, and 2023. My name is Scott Kirker, and I'm the Chief Legal Officer here at Tourmaline Oil.
Before we get started, I refer you to the advisories on forward-looking statements contained in the news release as well as the advisories contained in the Tourmaline annual information form and our MD&A that's 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
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