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Highlights

  • Tourmaline Oil’s total revenue for Q1 rose 16.3% YoY, fueled by hedging gains, better marketing, and a 19.1% boost in royalty income
  • The company is undertaking two strategic acquisitions in the NEBC Montney region
  • For FY25, the company plans to drill 364 net wells and has issued production guidance targeting an average annual output of 635,000 to 665,000 boepd

Tourmaline Oil Corp (TSX: TOU) is a leading Canadian energy company specializing in the acquisition, exploration, development, and production of natural gas and crude oil assets within the Western Canadian Sedimentary Basin.

In the first quarter of 2025 (Q1 2025), TOU’s total revenue grew by 16.3% year-over-year, driven by gains from hedging future contracts, improved marketing activities, and a 19.1% increase in royalty income. Although revenue increased, rising costs partially offset earnings, with net income significantly impacted by higher depreciation and depletion expenses. This was a result of increased capital expenditure and an expanded production base. This led to a decline in net earnings by 13.1% compared to Q1 2024.

Recent Business Update  

The company has announced two strategic acquisitions in the NEBC Montney region: the first involves acquiring the remaining Laprise-Conroy assets in North Montney through the purchase of Saguaro Resources Ltd., and the second adds assets in the Greater Septimus area of South Montney.  The company’s management has declared a special dividend of CAD 0.35 per share and signaled a motive for a CAD 0.50 per share quarterly dividend.

Company Outlook

For FY25, the company plans to drill 364 net wells. The production guidance for 2025 targets an average annual production between 635,000 and 665,000 barrels of oil equivalent per day (boepd). Exploration and production (E&P) capital expenditures for the full year 2025 are projected to range from CAD 2.6 billion to CAD 2.85 billion.

Top 10 Shareholders

The top ten shareholders of TOU collectively hold approximately 36.29% of the company’s outstanding shares. Among them, Capital World Investors and Capital Research Global Investors are the largest stakeholders, owning about 9.64% and 6.99% of the company’s stake, respectively.

Stock Performance

The stock price of TOU has appreciated by around 7.09%  and ~1.01% in the past month and past six months, respectively. The stock’s 52-week low and high span from CAD 55.27 to CAD 70.83. As of May 12, 2025, the stock’s closing price is CAD 63.69.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is May 12. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.