- Tourmaline Oil‘s 2Q Earnings Per Share (EPS) fell short of expectations at C$0.72, compared to C$1.49 the previous year and below the estimated C$0.98.
- Average production for the quarter reached 561,787 barrels of oil equivalent per day (boe/d), up 13% year-over-year but slightly below the estimate of 565,217 boe/d.
- Natural Gas Liquids (NGL) production averaged 92,920 barrels per day, surpassing the estimate of 89,925 barrels per day.
- Average natural gas production for the quarter was 2.54 million Mcf/d.
- Light and medium crude oil average daily production stood at 45,986 barrels, an increase of 8.1% year-over-year, though short of the 48,960 barrels estimated.
- The full-year 2024 average production guidance has been adjusted to a range of 575,000-585,000 boe/d, down from the previous range of 580,000-590,000 boe/d.
- Tourmaline Oil remains committed to a long-term net debt target of $1.2-$1.4 billion and aims to make progress towards this goal throughout 2024.
- For 2024, using strip pricing as of July 15, 2024, the company anticipates generating cash flow of $3.4 billion (equivalent to $9.62 per diluted share) and free cash flow of $1.3 billion ($3.63 per diluted share) on exploration and production (EP) expenditures of $2.0 billion.
- The company expects to generate over $1.0 billion in free cash flow annually as part of its five-year EP Plan.
- Analyst ratings include 14 buys, 2 holds, and 0 sells.
A look at Tourmaline Oil Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Tourmaline Oil Corp. shows promising signs for its long-term outlook. With a solid score in Value, indicating that the company may be undervalued compared to its peers, investors could potentially benefit from future growth. Additionally, its Growth score suggests that Tourmaline Oil is well-positioned for expansion in the crude oil and natural gas sector, aligning with its strategic focus on long-term growth in the Western Canadian Sedimentary Basin.
Although Tourmaline Oil Corp. does not score the highest in Dividend, Resilience, or Momentum, the company’s overall Smart Scores paint a positive picture for its future prospects. With a strong emphasis on exploration, development, production, and acquisition programs, Tourmaline Oil‘s long-term outlook appears to be on a favorable trajectory for potential investors seeking opportunities in the energy industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
