Tourmaline Delivers Strong Free Cash Flow in the Third Quarter, Updates Five Year EP Plan with Significantly Increased Free Cash Flow
Press Release
Calgary, Alberta – Tourmaline Oil Corp. (TSX:TOU) (“Tourmaline” or the “Company”) is pleased to release financial and operating results for the third quarter of 2023.
HIGHLIGHTS
• Third quarter cash flow (1)(2) of $878.5 million ($2.55 per diluted share(3)).
• Generated Q3 free cash flow (4) (“FCF”) of $332.3 million ($0.96 per diluted share) enabling the Company to declare a special dividend of $1.00 per common share paid on November 1, 2023 to holders of record on October 24, 2023. Tourmaline has distributed total dividends of $6.52 per share (inclusive of this November 1, 2023 special dividend) since December 1, 2022, an implied 9% trailing yield (5).
• Full-year 2023 free cash flow forecast of $1.9 billion(6) (2022 free cash flow – $3.2 billion).
• September 30, 2023 net debt(7) of $879.8 million or 0.3 times Q3 2023 annualized cash flow of $3.5 billion.
• Tourmaline Q3 2023 net earnings of $274.7 million ($0.80 per diluted share).
• In October 2023, the Company entered into an agreement to acquire all of the shares of Bonavista Energy Corporation (“Bonavista”) for $1.45 billion, consisting of $725 million in Tourmaline common shares and $725 million of cash, less Bonavista’s net debt (8) at closing. The closing of the transaction is expected to occur in the second half of November 2023, subject to customary regulatory and stock exchange approvals.
(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”, “free cash flow”, “operating netback”, “operating netback per boe”, “cash flow per diluted share”, “free cash flow per diluted share”, “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 most recently filed Management’s Discussion and Analysis (the “Q3 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” 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 income taxes. See “Non-GAAP and Other Financial Measures” in this news release.
(3) “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 Q3 MD&A.
(4) “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.
(5) Calculated as the dividend per common share for the stated period divided by the closing stock price of $69.46 on October 13, 2023.
(6) Based on oil and gas commodity strip pricing at October 13, 2023.
(7) “Net debt” is a capital management measure. See “Non-GAAP and Other Financial Measures” in this news release and in the Q3 MD&A.
(8) For the purposes of the Bonavista acquisition only, net debt is defined as all indebtedness (including bank debt) plus working capital (excludes commodity hedging) and includes all transaction and related costs.
IBF4
