#ENCORE ENERGY DRILLING FULL#
#ENCORE ENERGY DRILLING FREE#

The Company intends to continue to return the majority of FCF (greater than 60% in 2022, 50-75% in 2023) to shareholders through base dividend increases, special dividends, and share buybacks.

#ENCORE ENERGY DRILLING FREE#

The magnitude of these special dividends will be a function of commodity prices and available quarterly free cash flow. Tourmaline intends to pay quarterly special dividends through the balance of 20.Total trailing twelve-month dividends of $6.28/share (inclusive of the August 2022 special dividend) have provided for a dividend yield of 9% (8).The special dividends are designated as “eligible dividends” for Canadian income tax purposes. The Company has also declared a Q3 2022 special dividend of $2.00/share that will be paid on Augto shareholders of record on August 5, 2022. Given the strong commodity price outlook and anticipated record free cash flow in 2022, Tourmaline intends to return a minimum of 60% of FCF to shareholders in 2022.

At current strip pricing ( July 18, 2022), full-year 2022 cash flow of $5.0 billion is now anticipated ( $14.69 per diluted share).

Second quarter 2022 free cash flow was a record $1.1 billion ( $3.25 per diluted share).Second quarter 2022 cash flow was a record $1.35 billion ( $3.95 per diluted share), a 137% increase over second quarter 2021 cash flow.Full-year 2022 average liquids production of over 115,000 boepd is expected, up 19% from average 2021 levels (condensate, oil, NGLs).(“Rising Star”) acquisition from August onwards (as further described below). A full-year 2022 average production forecast of 507,000 boepd is now anticipated, including the impact of the Rising Star Resources Ltd. The modest EP activity increase post break-up will lead to a higher Q4 2022 production forecast of 520,000 to 525,000 boepd, up from 510,000 boepd in the previous forecast.A third quarter 2022 average production range of 485,000-495,000 boepd is forecast reflecting planned facility turnarounds, temporary in-field frac-related shut-ins, and incorporating considerable third-party pipeline maintenance in August.Second quarter 2022 production average was 502,937 boepd (506,086 boepd prior to storage injections in California and Dawn), within the previously disclosed guidance range and a 23% increase over second quarter 2021 production of 410,339 boepd.Average annual production growth during the plan is approximately 6%, total production growth over the period of the plan is 40%. The new EP growth plan (2022-2028) generates $31.4 billion of CF and $18.0 billion of FCF at strip pricing ( July 18, 2022) on total EP spending of $12.7 billion.The new EP growth plan extends through 2028 and incorporates the current 12-13 drilling rig fleet in 2H 2022 and through the balance of the plan and also includes phase 1 of the Conroy North Montney development project, commencing production through new Tourmaline facilities in Q1 2026 and phase 2 in 2028.The EP program is expected to deliver an annual average production of 545,000 boepd, and cash flow at strip pricing of $5.1 billion, yielding FCF of $3.5 billion in 2023.

#ENCORE ENERGY DRILLING FULL#

Tourmaline’s 2023 EP capital program is estimated at $1.6 billion reflecting the 12-13 rig program for the full year and increased inflation contingencies over the May 2022 plan.

At current strip pricing, full-year 2022 CF of $5.0 billion (7) is now anticipated ( $14.69 per diluted share).

Second quarter 2022 net earnings were $822.9 million ( $2.40 per diluted share).

Second quarter 2022 EP capital spending was $228.9 million, within previous guidance.

Tourmaline’s trailing 12-months of distributed dividends now total $6.28 per share (inclusive of this August 2022 special dividend), an implied 9% trailing yield (6). Second quarter 2022 free cash flow was a record $1.1 billion ( $3.25 per diluted share) enabling the Company to declare a special dividend of $2.00 per common share to be paid Augto shareholders of record on August 5, 2022.This places Tourmaline in an excellent position to concurrently fund the Conroy project and to continue its free cash flow (5) (“FCF”) allocation strategy. Net debt (4) at June 30, 2022, was $430.0 million, well below the long-term debt target of $1.0– $1.2 billion.Second quarter 2022 cash flow (1)(2) (“CF”) was a record $1.35 billion ( $3.95 per diluted share (3)), a 137% increase over second quarter 2021 cash flow.

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