Independent Research, Turtles all the way down

Turtles all the way down

Writing short articles about mis-priced boring stocks around the world.

Independent Research

Equity Bottom-Up

<p>One of lowest cost producer in North America at $1.5/mcf FCF break even. Trading at &gt;10% FW FCF yield at $2.8/mcf gas prices with &gt;10% ROIC. Debt free by 2022. Depreciation overstated due to significant cost reductions in F&amp;D costs in past years. 2/3 of North American natural gas supply will show muted reaction to higher natural gas prices. Consolidation and investor focus on FCF will provide incentive against production growth. Let’s start with why Tourmaline is cheap.</p>

One of lowest cost producer in North America at $1.5/mcf FCF break even. Trading at &gt;10% FW FCF yield at $2.8/mcf gas prices with &gt;10% ROIC. Debt free by 2022. Depreciation overstated due to significant cost reductions in F&amp;D costs in past years. 2/3 of North American natural gas supply will show muted reaction to higher natural gas prices. Consolidation and investor focus on FCF will provide incentive against production growth. Let’s start with why Tourmaline is cheap.

Tourmaline Oil

Tourmaline Oil