Tourmaline Oil's Surprising Strength in Weak Gas Prices
Tourmaline Oil (TSX:TOU), a Canadian energy giant, has reported record production and strong earnings in its first quarter of 2026. Despite weak natural gas prices, the company delivered average production of 666,089 barrels of oil equivalent per day within its original guidance range.
The operating cash flow was $862 million, while free cash flow (FCF) stood at $202 million with a net income of $658 million. Management allocated roughly $660 million towards capital expenditures during this period.
Tourmaline's average realized gas price in the first quarter was $3.59 per thousand cubic feet (Mcf), well above the AECO benchmark price of $2.05 per Mcf over the same period. The company sells gas into multiple markets, which has helped it maintain a higher price.
President and CEO Mike Rose highlighted the improvements in the business, citing 'well productivity to improving cost, to a fortress balance sheet, to decades of booked reserves, to an unmatched high-quality drilling inventory.'