- Given improving 2023 natural gas strip pricing(1) at several sales hubs, 2023 cash flow(2)(3) guidance has been increased to $6.58 billion, up 28% from previous guidance of $5.14 billion.
- 2023 average production guidance remains at 545,000 boepd (2.5 bcf/day of natural gas and 126,000 bpd of oil, condensate, and NGLs).
- Tourmaline expects to export approximately 926 mmcfpd of natural gas at exit 2023 including an initial 140 mmcfpd on the Gulf Coast fully exposed to JKM pricing, commencing January 1, 2023.
- As a result of the Alberta/BC pipeline maintenance and related natural gas price collapse at AECO and Station 2 in the second half of August, Tourmaline shut in approximately 100 mmcfpd of existing production and delayed the startup of several new pads from August to September/October 2022.
- In anticipation of this period of planned pipeline maintenance and resulting weaker expected prices, Tourmaline scheduled facility turnarounds and hedged higher than usual natural gas volumes during the month of August 2022. Furthermore, volumes were also impacted by an unscheduled outage at the Pembina Resthaven deep cut facility due to start-up issues which resulted in a subsequent five-day unplanned outage.
- Q3 2022 production average of 480,000 – 485,000 boepd is now anticipated, down 1.5% from previous guidance of 485,000 – 495,000 boepd.
- The Company also expects to inject approximately 3,200 boepd into storage facilities at Dawn and California during the third quarter of 2022, with the majority of those volumes to be withdrawn during winter months when natural gas prices are expected to be higher.
- Q4 2022 production guidance is expected to average between 525,000 – 530,000 boepd and average full year 2022 production of 507,000 boepd remains unchanged.
- Since July 1, 2022, Tourmaline has continued to strategically enter into additional commodity hedges. Approximately 26% of 2023 average production is now hedged at a weighted average fixed price of CAD $5.26/mcf. Additionally, for this time frame, the Company has 110 mmcfpd of natural gas hedged at a basis to NYMEX of USD $0.12/mcf.
- Since July 1, 2022, Tourmaline has continued to capitalize on strong LNG prices and has entered into an additional 20 mmcfpd of JKM hedges for April to October 2023, and 20 mmcfpd for April to October 2024. This provides fixed price protection on a portion of Tourmaline’s 140 mmcfpd Gulf Coast LNG deal which commences on January 1, 2023. The 2023 JKM strip price was $50.46 US/mmbtu as of September 6, 2022.
- Tourmaline also continues to realize strong prices through its Western-US exposure. As of September 6, 2022, the November 2022 to March 2023 strip at Malin was trading at $8.35 US/mmbtu and PG&E Citygate strip for the same period was trading at $9.07 US/mmbtu. For this term, 56% of Tourmaline’s Malin volumes and 64% of the Company’s PG&E volumes are floating and will benefit from these strong prices.
- As of September 6, 2022, the April to October 2023 strip at Malin was trading at $5.27 US/mmbtu and PG&E Citygate strip for the same period was trading at $6.63 US/mmbtu. For this term, 82% of Tourmaline’s Malin volumes and 80% of the Company’s PG&E volumes are floating and will benefit from these strong prices.
All amounts in this news release are stated in Canadian dollars unless otherwise specified.