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Tourmaline projects 2014 cash flow to double amid strong volumes, prices

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Tourmaline Oil Corp. (TSE:TOU), an oil and gas producer focused on Western Canada, increased to a two-week high after projecting full-year cash flow to almost double as production volumes  would grow amid stronger natural gas prices.

The shares rose to C$49.90, the highest intraday price since March 4, and were trading at C$49.81, up 3 percent, at 2:05 p.m. in Toronto.

The company forecasts 2014 full-year cash flow of $1.0 billion, a 92 percent increase over 2013 cash flow, the Calgary, Alberta-based company said in a statement after market close yesterday. 

Tourmaline said the likely increase is driven by the combination of an expected 60 percent growth in production volumes and stronger natural gas prices.

The company is targeting a 2014 exit volume of 18,000 - 20,000 barrels of oil equivalent per day from the Peace River High Charlie Lake Complex with these new facilities on-stream.

Tourmaline estimates its 2014 average production to be 120,000 boepd and expects commodity price for natural gas to be $3.86/mcf and crude oil to be $97 per barrel.

For 2013, the company's cash flow increased 88 percent to $526.8 million, annual production grew 47 percent.

For the fourth quarter, average production improved 50 percent to 86,089 boepd.

Tourmaline's target price was boosted at Raymond James to C$56.00 from C$54.00. Raymond James’ price target points to a potential upside of 13.9 percent from the stock’s previous close.

 

 

Quick facts: Tourmaline Oil Corp

Price: 18.08 CAD

TSX:TOU
Market: TSX
Market Cap: $4.92 billion
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