TOURMALINE DELIVERS RECORD PRODUCTION, INCREASES 2P RESERVES TO 5.5 BILLION BOE, ANNOUNCES A 43% INCREASE TO THE BASE DIVIDEND AND DECLARES A SPECIAL DIVIDEND

Canada NewsWire

CALGARY, AB, March 5, 2025

CALGARY, AB, March 5, 2025 /CNW/ - 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 2024.

HIGHLIGHTS

   -- Full-year 2024 cash flow(1) ("CF") was $3.2 billion ($8.93 per diluted 
      share(2)).  Fourth quarter 2024 CF was $850.3 million ($2.27 per diluted 
      share). 
 
   -- 2025 forecast free cash flow(3) ("FCF") of $1.4 billion ($3.62 per 
      diluted share(4)) based on current strip pricing(5), up from previous 
      guidance of $1.1 billion(6).  At current strip pricing, the Company 
      forecasts it will generate 2025 CF of $4.3 billion ($11.53 per diluted 
      share). 
 
   -- Full-year 2024 net earnings were $1.3 billion ($3.51 per diluted share). 
 
   -- The Company announces a quarterly base dividend increase of 43% to $0.50 
      per share effective Q1 2025 and a special dividend of $0.35/share. 
      Tourmaline believes that with continued improvements in realized pricing, 
      the Company is well positioned to increase returns to shareholders in 
      2025 relative to 2024, in addition to pursuing a growth capital budget. 
 
   -- First quarter 2025 production range of 630,000-635,000 boepd is currently 
      anticipated. 
 
   -- Proved developed producing ("PDP") reserves(7) increased 29% in 2024 
      after accounting for production. 
 
   -- Proved plus probable ("2P") reserves increased 14% to 5.5 billion boe in 
      2024 after accounting for production. 
 
   -- Exit 2024 net debt(8) was $1.7 billion (0.4 times 2025 forecast cash 
      flow).  The Company intends to deleverage throughout 2025 and remains 
      committed to a long-term net debt target of $1.5 billion (which is 
      approximately 0.30 to 0.35 times 2025 forecast net debt to cash flow). 

PRODUCTION UPDATE

   -- Fourth quarter 2024 average production was 605,413 boepd, up 9% from Q4 
      2023.  Full-year 2024 average production of 579,173 boepd was up 11% over 
      full-year 2023 average production of 520,366 boepd. 
 
   -- 2024 average liquids production (oil, condensate, NGLs) of 138,584 bbls/d 
      was up 17% over 2023 liquids production of 118,808 bbls/d. 
 
   -- In addition to being Canada's largest and most active natural gas 
      producer, Tourmaline is the largest NGL producer and the third largest 
      condensate producer in Canada(9). Condensate and NGL production volumes 
      are expected to increase significantly over the next 5 years with the 
      Company's North Montney, West Doe-Groundbirch, South Montney, and North 
      Deep Basin growth projects. These projects are not fully captured in the 
      Company's current five-year EP plan but will be as the timelines are 
      solidified. 
 
   -- The 2025 forecast production range of 635,000 to 665,000 boepd remains 
      unchanged; the Company expects to finalize the second half 2025 EP 
      capital program during the second quarter. 
 
   -- First quarter 2025 production of 630,000 to 635,000 boepd is currently 
      anticipated. The Company has approximately 51 wells to bring 
      on-production in March which is expected to result in a first quarter 
      exit in excess of 640,000 boepd. 

FINANCIAL HIGHLIGHTS

   -- Improving strip prices have increased full-year forecast 2025 CF to $4.3 
      billion from previous guidance of $4.1 billion and full-year forecast 
      2025 FCF to $1.4 billion, from previous guidance of $1.1 billion, as 
      disclosed in November 2024. 
 
   -- Full-year 2024 CF was $3.2 billion ($8.93 per diluted share) and 
      full-year 2024 FCF was $1.0 billion ($2.75 per diluted share). 
 
   -- Fourth quarter 2024 CF was $850.3 million ($2.27 per diluted share on Q4 
      2024 average production of 605,413 boepd).  Q4 2024 FCF was $96.7 million 
      ($0.26 per diluted share). 
 
   -- Full-year 2024 earnings were $1.3 billion ($3.51 per diluted share). 
 
   -- Given the strong growth in the base business over the past three years, 
      through a combination of high margin, organic growth and accretive 
      acquisitions, Tourmaline's Board of Directors has elected to increase the 
      base quarterly dividend from $0.35 to $0.50 per share, a 43% increase, 
      effective Q1 2025. 
 
   -- Tourmaline's Board of Directors has also declared a special dividend of 
      $0.35 per share to be paid on March 25, 2025 to shareholders of record on 
      March 13, 2025.  Tourmaline intends to pay special dividends in all four 
      quarters of 2025, inclusive of this Q1 2025 special dividend. Tourmaline 
      believes that with continued improvements in realized pricing, the 
      Company is well positioned to increase returns to shareholders in 2025 
      relative to 2024, in addition to pursuing a growth capital budget. 
 
   -- Tourmaline paid $3.32 per share in combined base and special dividends in 
      2024, a 5.3% trailing yield based on an average 2024 share price of 
      $62.37. 
 
   -- Full-year 2024 capital expenditures were $1.9 billion, including Q4 2024 
      capital expenditures of $460.2 million. 
 
   -- Exit 2024 net debt was $1.7 billion, approaching the Company's long-term 
      net debt target of $1.5 billion (which is approximately 0.30 to 0.35 
      times 2025 forecast net debt to cash flow).  This does not include the 
      value of the Company's Topaz shares, which was $911.5 million based on a 
      December 31, 2024 closing Topaz share price of $27.85.  Maintaining 
      balance sheet strength puts the Company in a strong position to deal with 
      any new macro challenges and to take advantage of opportunities that 
      might arise. 

2024 RESERVES

   -- Year-end 2024 PDP reserves of 1.35 billion boe were up 29% after 
      accounting for 2024 annual production of 212 million boe.  Total proved 
      ("TP") reserves of 2.91 billion boe were up 19% after accounting for 2024 
      production.  2P reserves of 5.50 billion boe were up 14% after accounting 
      for 2024 production. 
 
   -- For the second consecutive year, the EP program had an increased emphasis 
      on conversions to PDP rather than 2P reserve growth compared to previous 
      years. 
 
   -- After 16 years of operations, Tourmaline now has 24.84 TCF of economic 2P 
      natural gas reserves and 1.36 billion barrels of 2P oil, condensate and 
      NGL reserves, all of which are pipeline-connected to markets across North 
      America.  At year-end 2024, 84% of the current estimated drilling 
      inventory was not booked in the 2024 year-end reserve report. 
 
   -- Year-end 2024 oil, condensate, and NGL 2P reserves of 1.36 billion 
      barrels represent the second largest conventional liquids reserve base in 
      Canada, based on public disclosure. 
 
   -- Tourmaline has only booked 3,972 gross locations of a total drilling 
      inventory of 25,462 gross locations (16% of the overall inventory) to 
      achieve year-end 2024 2P reserves of 5.50 billion boe. 
 
   -- Tourmaline replaced 330% of its 2024 annual production of 212.0 
      million boe with 2P additions of 698.8 million boe, including 2024 
      production. 
 
   -- Tourmaline's 2024 PDP finding and development ("F&D") costs were $8.45 
      per boe including changes in future development capital ("FDC"), yielding 
      a PDP reserve recycle ratio(10)(11) of 1.8 times. 
 
   -- TP FD&A costs in 2024 were $9.44 per boe, including changes in FDCs. 
       3-year TP FD&A costs are $10.23 per boe, including changes in FDC. 
 
   -- 2P FD&A costs in 2024 were $7.28 per boe, including changes in FDC, 
      yielding a 2P recycle ratio of 2.1 times. 3-year 2P FD&A costs were $9.03 
      per boe, including changes in FDC.  The 2024 2P FD&A costs continue to 
      reflect the increased focus on conversions to PDP.  Approximately 81% of 
      the 256.5 net wells rig released in 2024 were conversions from 
      undeveloped reserves to developed reserves.  Delays in acquiring new 
      surface disturbance permits in HV1 areas in NEBC limited the ability to 
      drill delineation pads and book 2P reserves.  The Company expects this 
      situation to improve in 2025. 
 
   -- Tourmaline's 2P reserve value (before taxes) equates to $114.20 per 
      diluted share (after tax reserve value of $87.61 per diluted share) using 
      the January 1, 2025 engineering price deck at a 10% discount rate.  TP 
      reserve value (before tax) is $75.17 per diluted share and $59.18 per 
      diluted share (after tax).  PDP reserve value is $44.42 per diluted share 
      (before tax) and $37.12 per diluted share (after tax). 

2025 CAPITAL PROGRAM

   -- The full-year 2025 EP capital budget range remains unchanged at $2.60 to 
      $2.85 billion.  The Company expects steadily improving natural gas prices 
      in 2025. Should the price recovery materialize later in the year, the 
      capital program will be sequenced accordingly. 
 
   -- Facility and pipeline expenditures of $300.0 million remain in the total 
      2025 EP capital budget, including the ongoing NEBC North Montney Phase 1 
      infrastructure buildout, electrification pre-builds for the 2026-2027 
      West Doe and Groundbirch gas plant projects, and certain long-lead time 
      facility pre-orders. 
 
   -- The Company expects to finalize the sequencing of the entire future NEBC 
      infrastructure buildout during 2025 (expected to include up to four new 
      gas processing facilities in aggregate).  The Groundbirch development is 
      now expected to consist of two separate 200 mmcfpd deep-cut plants, to be 
      installed in the 2027 to 2029 time frame. 

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March 05, 2025 17:00 ET (22:00 GMT)