Tourmaline Oil Corp. · TSX:TOU
Tourmaline Oil — Q2 2025 Earnings Presentation
48 slides from Tourmaline Oil's earnings presentation, Jul 31, 2025
Slide 1: Corporate Presentation
Corporate Presentation July 2025
Slide 2: Tourmaline Overview
Tourmaline Overview 2 The Scale, Resource, and Infrastructure Required to Profitably Grow in the WCSB and Provide Returns to Shareholders July 2025 Tourmaline Overview 5.1 MM Net Acres, 5.5 Billion Boe 2P Reserves(1) • Largest natural gas producer in Canada Drilled to Date • 4th largest Canadian gas
Slide 3: Largest North American Natural Gas Producers
3 Largest North American Natural Gas Producers July 2025 Tourmaline is the largest natural gas producer in Canada, and the fourth largest gas focused producer in North America MMcf/d 2025E Natural Gas Production – Canada & US 8,000 7,000 Scale is a key component in driving down 6,000 costs, leveragi
Slide 4: Tourmaline: A Significant Canadian Liquids Producer
4 Tourmaline: A Significant Canadian Liquids Producer July 2025 Tourmaline is a significant liquids producer in Canada, with continued peer leading growth • Tourmaline is the 4th largest producer of conventional liquids , 3rd largest condensate producer, and the largest producer of NGLs (>50% larger
Slide 5: EP Growth Plan
5 EP Growth Plan(1) July 2025 1,000,000 800,000 600,000 Spirit River Boe/d 400,000 Deep Basin NEBC 200,000 - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Declared Ending After-tax After-tax E&P Capital Free Cash Base Special Surplus Prod’n Cash Flow CFPS – Program(
Slide 6: Tourmaline EP Project Summary
6 Tourmaline EP Project Summary July 2025 Tourmaline’s NEBC build out will include 2 new facilities and 4 complex expansions, 3 new liquids hubs, providing 200 mboepd of high margin volume growth into the next decade Production Outlook mboepd (Growth to 850 mboepd) 950 Updated EP Plan Future Upside
Slide 7: 2024-2031 NEBC Infrastructure Project Overview
2024-2031 NEBC 7 Infrastructure Project Overview July 2025 • This is the largest EP growth project in the WCSB over the next 5 years and is timed to the growing Canadian LNG business. • Tourmaline expects to add 1.1 bcf/d of new gas production and over 50,000 bpd of condensate and ngls over the next
Slide 8: NEBC Montney Gas/Condensate Complex
8 NEBC Montney Gas/Condensate Complex July 2025 Current Prod. 320,000 boepd Current Reserves 3,279 mmboe (Dec 31, 2024) NRM Jedney Montney Drilling In excess of 7,857 horizontal Inventory locations. (Dec 31, 2024) Aitken Complex 330 mmcf/d NRM Aitken/Hwy Current Planned Tourmaline is one of the larg
Slide 9: Alberta Deep Basin
9 Alberta Deep Basin Mar 2025 The contiguous Tourmaline interconnected Deep Basin TCPL Cretaceous gas asset is effectively Alberta’s Largest Gas Field Musreau /Kakwa • Current Production 320,000 boepd Netook • Current Reserves 1,945 mmboe (as at Dec 31, 2024) • Tourmaline Land Base 3.2 million acres
Slide 10: Peace River High Complex Triassic Oil
10 Peace River High Complex Triassic Oil Charlie Lake, Montney and Wapiti Cardium Plays Mar 2025 R. 11 R. 9 R. 7 R. 5 Peace River High • 2,428 Horizontal Locations* along Regional Play Fairways • Current Reserves of 272 mmboe (Dec 31, 2024) T. 83 Earring • Regional pools defined by >400 horizontal w
Slide 11: Tourmaline Midstream Assets
11 Tourmaline Midstream Assets July 2025 The infrastructure skeleton in all three core operated complexes is now complete This infrastructure is essentially all new and in the ‘growth’ areas of the WCSB 34 working interest1 gas plants, 19 of which are 100% owned and operated, 4 Topaz interest plants
Slide 12: North American Natural Gas Reserves
12 North American Natural Gas Reserves July 2025 Companies that own the largest, lowest development cost, transport-integrated natural gas reserves, will increasingly dominate the Energy space in the next 20 – 30 years 26 Rockies LNG 25 St. 2 2P Reserves (Tcf) Montney LNG Canada 8 Deep 7 Sumas Basin
Slide 13: Multiple Decades of Tier Inventory
13 Multiple Decades of Tier 1 Inventory July 2025 Tourmaline’s deep inventory ownership provides multiple decades of very profitable development, plus no need to pursue large “resource reloads” in A&D market Drilled to Date $6.00 75 yrs of 2025 Drilling Drilling A.Tax Break-Even Gas Price (C$/GJ AEC
Slide 14: A Unique, Expanding Exploration Program
14 A Unique, Expanding Exploration Program 2024 Highlights and Significant Planned 2025 Wells July 2025 Conroy Exploration program success has created significant incremental value in existing core complexes, the majority of Mntn 2025 New Zone Test Birley the discoveries can access Tourmaline infras
Slide 15: Continuous D&C Performance / Cost Improvements
15 Continuous D&C Performance / Cost Improvements Mar 2025 Wells Placed on Production Feet Average Lateral Feet per Well 180 An increasingly NEBC dominated 10,000 development program 159 ~50% increase in corporate 160 142 lateral length since 2018 137 140 9,000 140 124 120 112 107 101 101 106 108 8,
Slide 16: Continuous Capital Efficiency Improvements
16 Continuous Capital Efficiency Improvements July 2025 $22,500 $20,900 $20,000 $17,500 $15,500 Tourmaline maintains best in class capital efficiencies $15,000 $12,500 $12,500 $11,800 $/boepd $11,200 $10,700 $10,000 $9,500 $9,500 $8,650 $8,900 $8,000 $7,300 $7,500 $5,000 $2,500 $- (1) 2014 2015 2016
Slide 17: 2025 Natural Gas Transportation and Marketing Overview
17 2025 Natural Gas Transportation and Marketing Overview July 2025 Natural Gas Price Exposure 5% 3% 1% 17% 38% 50% 51% 52% 37% 20% Station 2 14% 14% 15% 16% 12% 2% 2% 2% 2% 2% 10% 14% 14% 12% 14% 14% 8% 5% 5% 5% 5% 3% 2% 1% 1% 3% 9% 5% 8% 8% 8% 2025 2026 2027 2028 2029 AECO US Gulf/LNG US Midwest D
Slide 18: Tourmaline LNG Overview
18 Tourmaline LNG Overview July 2025 Tourmaline continues to grow its international pricing exposure Rockies LNG - Partner • A partnership of Western Canadian natural gas producers working together to develop LNG export opportunities for Canadian natural gas • Ksi Lisims site secured through project
Slide 19: The Growing Tourmaline Liquids Business
19 The Growing Tourmaline Liquids Business July 2025 Tourmaline’s diverse and profitable liquids marketing business • Liquids receive diversified pricing: WTI, FSPL, Namao/Peace, CRW, Mt. Belvieu, Conway, Far East Index, and Polypropylene netbacks • NGL volumes are meaningfully exposed to all Canadi
Slide 20: Liquids & Midstream Investment
20 Liquids & Midstream Investment Mar 2025 Tourmaline has repeatedly driven midstream related costs down through acquisition, investment and expansion, while also driving liquids revenue higher through international marketing and integration North Montney: Aitken North Montney: Gundy South Montney:
Slide 21: Growing Corporate Margins Through NEBC Development
21 Growing Corporate Margins Through NEBC Development July 2025 Tourmaline’s NEBC growth projects improve realizations, while lowering costs driving margin growth; $1/boe in lower operating & transport costs, with $1/bbl liquids mix uplift drives ~$400mm in annual additional margin Opex & Transport
Slide 22: Guidance
22 Guidance July 2025 2025(1) Production – Boe/d 635,000 – 650,000 Cash Flow(i) - $MM $3,730 (at 640,000 boepd) CFPS - Diluted(i) $9.71 (at 640,000 boepd) E&P Capital Program(ii) - $MM $2,600 – $2,850 Capital Expenditures(i) - $MM $2,850 - $3,100 Free Cash Flow(iii) - $MM $755 (at 640,000 boepd) (1)
Slide 23: Tourmaline 2026 After Tax Cash Flow Sensitivity & Allocation
23 Tourmaline 2026 After Tax Cash Flow Sensitivity & Allocation July 2025 Tourmaline’s low cost structure drives sustainable return on, and of, capital opportunities • TOU’s maintenance budget, and dividend is fully funded at US$2.15/mcf NYMEX & C$2.15/Mcf AECO • TOU will manage growth capital in ea
Slide 24: Tourmaline Long Term Value Progression
24 Tourmaline Long Term Value Progression Illustrative ‘Flat Deck’ CF & FCF Outlook July 2025 Investments in NEBC will double FCF generation through volume growth, margin expansion, and a migration to maintenance capital to enhance shareholder returns at 850 mboepd • 30% production growth facilitate
Slide 25: Tourmaline Free Cash Flow Allocation & Dividend Growth Track Record
Tourmaline Free Cash Flow Allocation & 25 Dividend Growth Track Record July 2025 The majority of Tourmaline’s free cash flow will be returned to shareholders; a growing base dividend and special dividends will be the preferred method of shareholder returns • Base dividend will continue to grow along
Slide 26: Tourmaline Long Term Business Plan
26 Tourmaline Long Term Business Plan Growth & Leading Shareholder Returns July 2025 2026 2028 2030 2032 850 Production Growth mboepd Deep Basin Growth 800 Continued Modest Growth Evolving Towards 1-2% NEBC Growth Production Growth with 700 Enhanced FCF Harvest Base Business 600 Large Project Sequen
Slide 27: Market Leading Return on and of Capital
27 Market Leading Return on and of Capital July 2025 Tourmaline’s return on capital employed (“ROCE”) will inflect to >10% with base and special dividends offering a future income yield in the mid to high single digits with upside in stronger commodity price environments 33% The ‘Magnificent 7’ have
Slide 28: Appendix
APPENDIX
Slide 29: Historical EP Performance
29 Historical EP Performance Mar 2025 Production Per Share* Reserves Per Share* 600 16 500 14 12 Boe / 000 Shares Boe / Share 400 10 300 8 200 6 4 100 2 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Operating Costs / BOE Cash Flow P
Slide 30: Independently Recognized Canadian 2P Reserves
30 Independently Recognized Canadian 2P Reserves(1) May 2025 Tcf Natural Gas 2P Reserves MMbbl Conventional Liquid 2P Reserves 30 2,500 25 25 2,000 20 1,500 1,356 15 1,000 10 500 5 0 0 Peer TOU Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer TOU Peer Peer Peer Peer Peer Peer Pe
Slide 31: Significant Montney Growth Potential
31 Significant Montney Growth Potential July 2025 Tourmaline has access to significant potential Montney growth through fully delineated assets that are economic on current strip Mboepd Tourmaline Montney BC and Alberta Montney Peers 500 >450 450 North Montney Ph2 • 425 South Montney Ph1/2 • 400 357
Slide 32: The Ever-Evolving Tourmaline Development Approach
32 The Ever-Evolving Tourmaline Development Approach Mar 2025 In the Alberta Deep Basin and the BC Montney Tourmaline is constantly seeking the balance between maximizing deliverability (growth), EUR (value), and overall economic return (CF/FCF). Tourmaline ultimately prioritizes IRR maximization, t
Slide 33: Gas Development Location Inventory and Economics
33 Gas Development Location Inventory and Economics(1) Mar 2025 AB Deep Basin AB Deep Basin NEBC Gundy NEBC North NEBC South PRH PRH North & West South MNTN MNTN MNTN Charlie Lake Montney Horizontal Horizontal Horizontal Horizontal Horizontal Horizontal Horizontal Total Well Costs (Drill, Case, Comp
Slide 34: Environmental Performance Investment
34 Environmental Performance Investment Mar 2025 Focusing on investment opportunities that maximize cost savings & environmental impact • Water: recycling, & pipeline infrastructure; ~95% recycling in NEBC, advancing AB towards 100% • Air: diesel displacement, pneumatic / venting reduction, power (h
Slide 35: Environmental Performance Improvement
35 Environmental Performance Improvement Mar 2025 Tourmaline has been aggressively and successfully pursuing a comprehensive environmental performance improvement strategy for over seven years. The Company is systematically improving its performance and reducing the impact of all aspects of activiti
Slide 36: Tourmaline Financial Position
36 Tourmaline Financial Position Excellent Liquidity, Resiliency & Capacity July 2025 Tourmaline has ample liquidity and capacity to weather adverse commodity prices $mm Debt Profile, Term, Capacity Change in: 2026 Cash Flow Sensitivities $3,325 Oil US$1/bbl $25 Sensitivity remains $2,550 primarily
Slide 37: Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities
37 Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities • Cost saving via novel frac water sourcing/recycling • Waste heat recovery technology • Alternative hz frac programs/processes – Concurrent pairs, delayed flow-backs etc. • Novel drilling technology to reduce time/cost • U
Slide 38: Schedule A
38 Schedule A DRILLING LOCATIONS Estimated Drilling Inventory This presentation discloses drilling locations in four categories: (i) proved undeveloped locations; (ii) probable undeveloped locations; (iii) unbooked locations; and (iv) an aggregate total of (i), (ii) and (iii). Of the 25,462 (gross)
Slide 39: Schedule A continued
39 Schedule A continued Deep Basin Horizontal well count : • Total horizontal Deep Basin locations = 17,660 (1-2 wells per section per zone depending on zone) • Less existing horizontals, and less 20% of existing vertical producers = 2,866 • Remaining Horizontal Locations = 14,794 Deep Basin vertica
Slide 40: Schedule B
40 Schedule B Prospective locations are unbooked locations that are not included in inventory. Unbooked locations are internal estimates based on the Company's prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal revi
Slide 41: Forward Looking Information
41 Forward Looking Information Certain information contained in this presentation constitutes forward-looking information within the meaning of applicable securities laws. This information relates to future events or the Company's future performance. All information other than information of histori
Slide 42: Forward Looking Information
42 Forward Looking Information With respect to forward-looking information contained in this presentation, assumptions have been made regarding, among other things: future crude oil and natural gas prices; future interests rates and currency exchange rates; the Company's ability to obtain qualified
Slide 43: Forward Looking Statement Advisories
43 Forward Looking Statement Advisories Oil and Gas Advisories Certain crude oil and natural gas liquids ("NGLs") volumes have been converted to millions of cubic feet equivalent ("mmcfe") or thousands of cubic feet equivalent ("mcfe") on the basis of one barrel ("bbl" of crude oil or NGLs to six th
Slide 44: Forward Looking Statement Advisories
44 Forward Looking Statement Advisories Non-GAAP Financial Measures Cash Flow Management uses the term “cash flow" for its own performance measure and to provide shareholders and potential investors with a measurement of the Company’s efficiency and its ability to generate the cash (net of current i
Slide 45: Forward Looking Statement Advisories
45 Forward Looking Statement Advisories Non-GAAP Financial Measures (con’t) E&P Capital Program Management uses the term "E&P Capital Program" as a measure of capital investment in exploration and production activity, and such spending is compared to the Company's annual budgeted exploration and pro
Slide 46: Forward Looking Statement Advisories
46 Forward Looking Statement Advisories Non-GAAP Financial Measures (con’t) Operating Netback Management uses the term “operating netback” as a key performance indicator and one that is commonly presented by other oil and natural gas producers. Operating netback is defined as the sum of commodity sa
Slide 47: Forward Looking Statement Advisories
47 Forward Looking Statement Advisories Non-GAAP Financial Ratios Operating Netback per-boe Management calculates “operating netback per-boe” as operating netback divided by total production for the period. Operating netback per-boe is a key performance indicator and measure of operational efficienc
Slide 48: Forward Looking Statement Advisories
48 Forward Looking Statement Advisories Capital Management Measures Adjusted Working Capital Management uses the term “adjusted working capital” for its own performance measures and to provide shareholders and potential investors with a measurement of the Company’s liquidity. A summary of the compos