Tourmaline Achieves Record Production, Adds 829 Million BOE of 2P Reserves and Reduces 2026 EP Capex
Press Release
Calgary, Alberta – 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 2025.
HIGHLIGHTS
⦁ Record Q4 2025 average production of 659,204 boepd and January 2026 average production of over 685,000 boepd.
⦁ 829 million boe proved plus probable (“2P”) reserve addition in 2025, including a corporate record single year organic 2P reserve addition of 457 million boe, both after accounting for 2025 production.
⦁ Continued corporate operating costs reduction in Q4 2025, down over 9% from the first half of 2025 to $4.66/boe.
⦁ Peace River High (“PRH”) asset sale completed in February 2026 for proceeds of $765 million, prior to customary closing adjustments.
⦁ 2026 forecasted EP capital expenditures reduced by $350 million as the Company remains focused on optimizing free cash flow(1)(2) (“FCF”).
⦁ Quarterly base dividend of $0.50/share to be paid on March 31, 2026 to shareholders of record at the close of business on March 16, 2026.
⦁ Net debt(3) at year-end 2025 of $1.5 billion, inclusive of the impact of the PRH asset sale, or 0.45x forecasted 2026 cash flow(4) (“CF”), down from Q3 2025 net debt of $2.3 billion.
(1) This news release contains certain specified financial measures consisting of non-GAAP financial measures, non-GAAP financial ratios, capital management measures and supplementary financial measures. See “Non-GAAP and Other Financial Measures” in this news release for information regarding the following specified financial measures: “cash flow”, “capital expenditures”, “EP expenditures”, “free cash flow”, “operating netback”, “operating netback per boe”, “cash flow per diluted share”, “free cash flow per diluted share”, “adjusted working capital”, “net debt”, “reserve value per diluted share”, “operating expenses per boe”, “cash general and administrative expenses per boe” and “transportation costs per boe”. 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 as at and for the year ended December 31, 2025 (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.
(1) “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.
(1) “Net debt” is a capital management measure. See “Non-GAAP and Other Financial Measures” in this news release and in the Annual MD&A.
(1) “Cash flow” is a non-GAAP financial measure defined as cash flow from operating activities adjusted for the change in non-cash working capital (deficit) and current taxes. See “Non-GAAP and Other Financial Measures” in this news release and in the Annual MD&A.
PRODUCTION UPDATE
⦁ Record Q4 2025 average production of 659,204 boepd, within the previous Q4 guidance range of 655,000 – 665,000 boepd.
⦁ Q4 2025 average liquids production (oil, condensate, NGLs) was also a record at 152,673 bbls/d.
⦁ January 2026 production averaged over 685,000 boepd prior to the impact of the PRH asset sale, a new record and ahead of expectations.
⦁ First quarter 2026 average production of 660,000 – 670,000 boepd is anticipated, after taking into account the sale of the PRH assets which closed on February 2, 2026.
⦁ In order to improve operating netbacks(5), Tourmaline has elected to terminate its discretionary deep cut gas plant deliveries in the Alberta Deep Basin in 2026 as contracts expire. This will reduce corporate average ethane production volumes by approximately 20,000 bpd on a full year basis but is expected to increase forecasted 2026 operating netback by approximately $65 million and forecasted 2027 operating netback by approximately $110 million through the elimination of deep cut processing fees as well as C2+ transportation and fractionation fees.
IBF4
