Tourmaline Oil (TOU) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 production, with January 2026 production over 685,000 boepd prior to asset sales.

• Completed Peace River High asset sale for CAD 765 million in February 2026, focusing on lower-cost production and debt reduction.

• Largest natural gas producer in Canada and sixth largest in North America, with 6.1 billion Boe 2P reserves as of Dec 31, 2025.

• Achieved MiQ Grade A methane certification for NEBC assets.

• Ongoing cost reduction and margin improvement initiatives, including contract terminations and operational efficiencies.

Financial highlights

• Q4 2025 cash flow was CAD 890 million (CAD 2.29 per diluted share); full year 2025 cash flow reached CAD 3.4 billion.

• Q4 2025 EP CapEx was CAD 813 million, within guidance; 2025 capital expenditures totaled $2.93 billion.

• 2026 EP CapEx program reduced by CAD 350 million to CAD 2.55 billion; total CapEx cut by CAD 400 million.

• 2026 cash flow forecasted at CAD 3.4 billion, with free cash flow over CAD 0.7 billion at strip pricing.

• Net debt at year-end 2025 was CAD 1.5 billion, down from CAD 2.3 billion in Q3 2025.

Outlook and guidance

• 2026 average production guidance is 620,000–640,000 boepd, largely unaffected by CapEx reductions.

• Additional CAD 200 million of D&C capital could be deferred in 2026 if commodity prices remain weak.

• For every $0.10/Mcf AECO price increase, 2026 cash flow rises by CAD 45 million.

• 2026 OpEx guidance set at $4.50/BOE, with further cost reductions targeted by 2031.

• EP Growth Plan targets 5% production CAGR from 2026–2031, with production rising to 800,000 boepd by 2031.