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Tourmaline Oil reports Q4 earnings of $629 million and 12 per cent production rise

CALGARY — Tourmaline Oil Corp. is reporting higher fourth-quarter earnings and production along with a 14 per cent increase in its dividend following a year in which it completed four corporate acquisitions.

The Calgary-based company, the largest natural gas producer in Canada, says it had net income in the last three months of 2020 of $629 million or $2.28 per share, more than 10 times the $61.3 million or 23 cents it reported in the same period of 2019.

It says the increase in net earnings reflects a gain on acquisition and divestitures of $500 million in the fourth quarter of 2020 and a five per cent increase in operating netbacks. 

Tourmaline says it produced an average of about 336,000 barrels of oil equivalent per day in the fourth quarter, up 12 per cent from just under 300,000 boe/d in the year-earlier period, but current production is above 405,000 boe/d.

It says its fourth quarter average price for natural gas rose 15 per cent to $3.19 per thousand cubic feet compared with the same period of 2019.

Its realized price for oil, condensate and natural gas liquids fell by 12 per cent to $33.85 per barrel.

"Given stronger than anticipated cash flow in future years, the company is increasing its dividend by 14 per cent from 14 cents per share per quarter to 16 cents … commencing in the first quarter of 2021," it said in a news release.

Tourmaline closed deals to buy two private producers, Modern Resources Inc. and Jupiter Resources Inc., in the fourth quarter, adding 76,000 barrels of oil equivalent per day of output for a total of about $526 million in cash and shares.

This report by The Canadian Press was first published March 10, 2021.

Companies in this story: (TSX:TOU)

The Canadian Press

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