TOURMALINE DELIVERS STRONG LIQUIDS GROWTH IN THE THIRD QUARTER, DECLARES SPECIAL DIVIDEND, UPDATES COST SAVING INITIATIVES, ANNOUNCES NEW GAS STORAGE ACCESS IN ALBERTA AND LNG CONTRACTS

Executive Summary

• Tourmaline reported Q3 2025 cash flow of C$719.6 M ($1.85 per diluted share) and earnings of C$190.4 M ($0.49 per fully‑diluted share), confirming profitability despite weak natural‑gas prices.
• The company declared a special dividend of $0.25 per share payable 25 Nov 2025 and reaffirmed its quarterly base dividend of $0.50 per share.
• New strategic initiatives were announced: a 6 BCF long‑term gas storage agreement with AltaGas (effective Apr 2026), three LNG supply contracts (totaling up to 130,000 MMBtu/d) beginning 2026‑2028, and exploration of a potential sale of the Peace River High complex.

Key Details

• Production – Q3 average 634,746 boe/d (high end of guidance); liquids 147,165 bpd (+4% YoY). Forecast Q4 655–665 k boe/d; 2026 guidance 690–710 k boe/d.
• Financials – Cash flow C$719.6 M (down 3% YoY); earnings C$190.4 M (‑46% YoY). EP expenditures $825.5 M; full‑year 2025 capital budget unchanged at $2.60–2.85 B. Net debt $2.3 B (0.6× FY 2026 forecast cash flow).
• Dividend – Special dividend $0.25/share payable 25 Nov 2025 (record date 14 Nov); base dividend $0.50/share to be declared in Dec 2025. Aggregate annualized dividend $3.00/share (~5% yield).
• Gas Storage Agreement – 6 BCF capacity at AltaGas Dimsdale facility, 10‑year term starting Apr 2026; option to expand to 10 BCF if Phase 2 FID occurs.
• LNG Contracts – Long‑term 50,000 MMBtu/d to Centrica Energy (Apr 2028, 10‑yr, TTF‑linked). Short‑term 50,000 MMBtu/d to EDF Trading (19 mo from Apr 2027) and 30,000 MMBtu/d to Hartree Partners (1 yr from Apr 2026), all TTF‑indexed. Total LNG exposure 213 k MMBtu/d in 2026, rising to 333 k MMBtu/d by 2028.
• Potential Asset Sale – Exploring sale of Peace River High complex; proceeds earmarked for reinvestment into higher‑return NEBC assets and to lower corporate operating costs.
• Cost‑Reduction Initiatives – Q3 corporate operating cost $4.80/boe (down $0.34/boe YoY, 7% improvement). NEBC “Build Out” expected to cut combined operating & transportation costs by ≥$1.00/boe over six years; additional 5% Deep Basin cost reduction targeted for 2026.
• Drilling Activity – Q3: 68 wells drilled, 88 completed, 38 DUCs carried into Q4. 2026 EP plan targets 370 net wells across Alberta Deep Basin, Peace River High and NEBC Montney.
• Pricing & Hedging – Average realized natural‑gas price $3.07/mcf (CAD) vs AECO benchmark $0.64/mcf. Hedged 1.2 bcf/d for remainder of 2025 at weighted avg $4.33/mcf (57 mmcf/d at $20.13 TTF, 109 mmcf/d at $6.86 US‑West).
• Outlook – EP plan projects 2026 cash flow ≈ C$4.0 B and free cash flow ≈ C$0.9 B (strip pricing assumptions). Anticipated AECO basis tightening to US$1.00/mcf could add ~$50 M per $0.10/mcf improvement.

Notable Quotes

• “The addition of another large storage position is a strategic opportunity to enhance financial performance and strengthen operational flexibility in volatile natural gas price environments.” – Tourmaline management (press release).
• “Our dividend policy continues to provide shareholders with an attractive income yield while we reinvest surplus free cash flow into higher‑return growth assets.” – Management.