Tourmaline Oil (TOU) Q2 2025 earnings summary

Executive summary

• Q2 2025 average production reached 620,757 BOEs per day, up 10% year-over-year and at the midpoint of guidance.

• Peer-leading cash flow and free cash flow generation, with Q2 cash flow of $823 million ($2.16 per diluted share) and free cash flow of $317 million ($0.83 per share).

• Net earnings for Q2 2025 were $515 million ($1.35 per diluted share), up 101% year-over-year.

• Special dividend of $0.35 per share declared, payable August 20, 2025, due to strong free cash flow.

• Entered a new long-term LNG feed gas supply agreement with Uniper, starting November 2028, providing international price exposure.

Financial highlights

• Market capitalization of $25.6B and enterprise value of $26.6B as of June 30, 2025.

• Net debt at June 30, 2025, was $1.9 billion, about 0.5x forecast cash flow.

• 2025 guidance: production 635,000–650,000 BOEs per day, cash flow $3.73B, E&P capital program $2.6–$2.85B, FCF $755M.

• Q2 2025 capital expenditures were $505.2 million; EP expenditures were $489.8 million, $70 million below forecast due to activity deferrals.

• Average realized natural gas price in Q2 was $3.34/Mcf, 94% above AECO 5A benchmark.

Outlook and guidance

• Full year 2025 average production expected at 635,000–650,000 BOEs per day; 2025 exit production guidance: 680,000–690,000 BOEs per day; 2026 average: 690,000–710,000 BOEs per day.

• Multi-year plan targets growth to 850,000 BOEs per day by 2031, with $2.5–$3 billion annual free cash flow at flat pricing.

• Free cash flow generation expected to increase 2.5x as margin expansion and maintenance capital are achieved.

• Capital budget for 2025 remains $2.6–$2.85 billion.

• Flexibility to defer or accelerate capital spending based on commodity prices.