Canada’s Tourmaline rides prices to strong Q3
Tourmaline Oil, Canada’s largest natural gas producer, reported Q3 2021 earnings of C$361.1mn (US$291.4mn) on November 3, up from C$4.8mn a year ago.
Cash flow increased to C$761.3mn from C$279.9mn, with Q3 free cash flow of C$369.5mn on capital spending of C$379.7mn.
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It attributed the gains to matching 53% improvements in average production and realised commodity prices, to 456,489 barrels of oil equivalent (boe)/day and C$28.89/boe, respectively. Natural gas production increased to 2.15bn ft3/day from 1.4bn ft3/day, while the average realised price on natural gas sales rose to C$3.88/’000 ft3 from C$2.60/’000 ft3.
Most of the production gains reflected corporate and property acquisitions since Q3 2020, including the July 2021 acquisition of Black Swan Energy for a share consideration of C$896.5mn.
Crude oil and condensate realised prices rose by 45% and 40%, respectively, while natural gas liquids realised prices jumped 115%.
Tourmaline also noted that it has already reached its original methane emissions reduction goal of 25% from 2018 levels by 2023, with 2020 emissions 26% lower, at 405,487 metric tons of CO2-equivalent, than its 2018 emissions, despite production growth of 17% over the same period.
“The company will continue further reducing methane, CO2 and other atmospheric emissions throughout the [exploration & production] portfolio and will revise the five-year Environmental Performance Improvement Plan as appropriate as these targets are achieved,” Tourmaline said.