CALGARY, AB–(Marketwired – March 09, 2015) – Tourmaline Oil Corp. (TSX: TOU) (“Tourmaline” or the “Company”) achieved exceptional growth in reserves (45%), production (51%) and cash flow(1) (76%) in 2014 while delivering strong profitability. The Company posted record after-tax earnings of $488.9 million for the 2014 fiscal year.
HIGHLIGHTS
- Record full year after-tax earnings of $488.9 million ($2.41 per diluted share), a 230% increase over 2013, underscoring the fundamental full-cycle profitability of Tourmaline’s natural gas business.
- Included in the full year 2014 earnings is a one-time pre-tax gain of $266.2 million on the disposition of 25% of the Company’s Peace River High Charlie Lake resource play for gross proceeds of $500.0 million.
- Industry-leading financial position with year end net debt(2) of $1.1 billion, 1.2 times debt to trailing cash flow or 1.1 times debt to forecast 2015 cash flow.
- 2014 cash flow of $929.0 million ($4.58 per diluted share), a 76% increase over 2013 (64% per diluted share).
- 2014 annual production growth of 51% (40% per diluted share), and forecast 2015 production growth of 46% over 2014.
- Q4 2014 average production of 130,944 boepd, a 52% increase over the fourth quarter of 2013 and a 21% increase over the previous quarter.
- Current production ranging between 145,000 – 150,000 boepd. The Company presently expects to achieve the 2015 average production target of 164,500 boepd in late April 2015.
- 2014 average operating netback(3) of $23.35/boe.
- Continued industry-leading all-in cost structure of $8.07/boe (operating costs, transportation, general and administrative, and financing costs).
- Q4 2014 operating costs were $4.07/boe, down 25% from Q3 2014. The Company is forecasting 2015 operating costs in the range of $4.25 – $4.35/boe, down from 2014 average operating costs of $4.87.
- Total 2P reserve additions of 307.0 mmboe in 2014 (179.4 mmboe 2013), representing 52% growth over 2013 total 2P reserves before 2014 production (45% per diluted share).
- Year end 2014 2P reserve value of $7.7 billion (10% discount, before tax), representing 24% growth over year end 2013 2P reserve value of $6.2 billion, a net present value increase in 2014 of $1.5 billion.
- 2014 2P finding, development and acquisition costs (“FD&A”) including future development costs (“FDC”) were $10.40/boe, 12% lower than 2013 FD&A including FDC costs ($11.84/boe).
- 2015 capital program was previously reduced to $1.2 billion from $1.6 billion with no impact on forecast 2015 production or cash flow.
| (1) | Cash flow is defined as cash provided by operations before changes in non-cash operating working capital. See “Non-GAAP Financial Measures” in the attached Management’s Discussion and Analysis. | |
| (2) | Net debt is defined as long-term debt plus working capital (adjusted for the fair value of financial instruments). See “Non-GAAP Financial Measures” in the attached Management’s Discussion and Analysis. | |
| (3) | Operating netback is calculated on a per-boe basis and is defined as revenue (excluding processing income) less royalties, transportation costs and operating expenses. See “Non-GAAP Financial Measures” in the attached Management’s Discussion and Analysis. | |
| CORPORATE SUMMARY – DECEMBER 31, 2014 | |||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
| 2014 | 2013 | Change | 2014 | 2013 | Change | ||||||||||||
| OPERATIONS | |||||||||||||||||
| Production | |||||||||||||||||
| Natural gas (mcf/d) | 692,604 | 446,337 | 55% | 586,456 | 397,487 | 48% | |||||||||||
| Crude oil and NGL (bbl/d) | 15,510 | 11,700 | 33% | 15,186 | 8,548 | 78% | |||||||||||
| Oil equivalent (boe/d) | 130,944 | 86,089 | 52% | 112,929 | 74,796 | 51% | |||||||||||
| Product prices(1) | |||||||||||||||||
| Natural gas ($/mcf) | $ | 4.09 | $ | 3.84 | 7% | $ | 4.58 | $ | 3.65 | 25% | |||||||
| Crude oil and NGL ($/bbl) | $ | 55.91 | $ | 71.83 | (22)% | $ | 68.78 | $ | 83.25 | (17)% | |||||||
| Operating expenses ($/boe) | $ | 4.07 | $ | 4.44 | (8)% | $ | 4.87 | $ | 4.35 | 12% | |||||||
| Transportation costs ($/boe) | $ | 1.99 | $ | 2.25 | (12)% | $ | 1.91 | $ | 2.07 | (8)% | |||||||
| Operating netback(4)($/boe) | $ | 20.23 | $ | 21.29 | (5)% | $ | 23.35 | $ | 20.37 | 15% | |||||||
| Cash general and administrative expenses ($/boe)(2) | $ | 0.56 | $ | 0.68 | (18)% | $ | 0.60 | $ | 0.74 | (19)% | |||||||
| FINANCIAL | |||||||||||||||||
| ($000, except share and per share) | |||||||||||||||||
| Revenue | 340,326 | 235,113 | 45% | 1,362,116 | 788,863 | 73% | |||||||||||
| Royalties | 23,604 | 13,489 | 75% | 120,191 | 57,504 | 109% | |||||||||||
| Cash flow(4) | 233,238 | 160,732 | 45% | 929,002 | 526,761 | 76% | |||||||||||
| Cash flow per share (diluted)(4) | $ | 1.14 | $ | 0.83 | 37% | $ | 4.58 | $ | 2.80 | 64% | |||||||
| Net earnings | 265,210 | 56,763 | 367% | 488,872 | 148,114 | 230% | |||||||||||
| Net earnings per share (diluted) | $ | 1.29 | $ | 0.29 | 345% | $ | 2.41 | $ | 0.79 | 205% | |||||||
| Capital expenditures (net of dispositions) | 152,135 | 497,941 | (69)% | 1,563,566 | 1,315,416 | 19% | |||||||||||
| Weighted average shares outstanding (diluted) | 202,776,972 | 188,244,300 | 8% | ||||||||||||||
| Net debt(4) | (1,142,509) | (832,942) | 37% | ||||||||||||||
| PROVED + PROBABLE RESERVES(3) | |||||||||||||||||
| Natural gas (bcf) | 4,344.5 | 3,026.1 | 44% | ||||||||||||||
| Crude oil (mbbls) | 37,661 | 26,960 | 40% | ||||||||||||||
| Natural gas liquids (mbbls) | 94,050 | 58,590 | 61% | ||||||||||||||
| Mboe | 855,793 | 589,904 | 45% | ||||||||||||||
| (1) | Product prices include realized gains and losses on financial instrument contracts. | |
| (2) | Excluding interest and financing charges. | |
| (3) | Reserves are “Company gross reserves”, which are defined as the working interest share of reserves prior to the deduction of interest owned by others (burdens). Royalty interest reserves are not included in Company gross reserves. | |
| (4) | See “Non-GAAP Financial Measures” in the attached Management’s Discussion and Analysis. | |
Conference Call Tomorrow at 9:00 a.m. MT (11:00 a.m. ET)
Tourmaline will host a conference call tomorrow, March 10, 2015 starting at 9:00 a.m. MT (11:00 a.m. ET). To participate, please dial 1-800-355-4959 (toll-free in North America), or local dial-in 416-340-2216, a few minutes prior to the conference call.
The conference call ID number is 4210791.
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