Tourmaline Oil Corp announced a portfolio of transactions completed this year which is expected to generate higher cash flow in 2022.
Also raises average 2021 production guidance to a range between 405,000 and 420,000 boepd from a previous guidance of 400,000 at the midpoint.
Continuous Consolidation to Boost Cash Flow
Brokerage Raymond James (raises TP to C$33 “outperform”) says encouraged by the improved near-term free cash flow profile and enhanced longer-term growth opportunities provided by the transactions announced.
Adds transcation are expected to be additive to the free cash flow outlook over the duration of the 5-year plan, with cumulative free cash flow now guided to $4.5 bln vs. $4.1 bln previously.
TPH Energy Research says its analysis of the Saguaro well results suggests the asset is very similar in quality to Gundy, which it view as one of the top gas assets in North America (raises TP to $37,”strong buy”).
BMO Capital Markets (raises TP to C$38) says TOU shares are attractively valued and is uniquely positioned to generate impressive levels of free cash flow, which could be used to bolster its balance sheet or increase returns to shareholders.
Also raises 2021 cash flow estimate to $7.96/share from $7.85 and 2022 estimate to $7.18/share from $7.00/share.