Tourmaline Oil

But then the E&Ps themselves too, you know, a lot of them that we cover are, are known for paying dividends, and Whitecap is consistent.

Tourmaline, some of these other companies are, are able to balance growth and, and dividends as well.

And you can see some of the, some of the dividend yields are going down a little bit with the stock prices going up.

But it's, there's still strong opportunity, and it's each company has its own individual metrics and their own individual strategy, which we break down for our, for our subscribers, and I can get into that more detail.

And, you know, Peyto, a, a company we just introduced coverage with in the, of in the spring, very long-term, 27-year track record of consistent production growth and low cost, which is something you wanna pay attention to with the, with the natural gas producers.

With this, these price swings and these low prices, obviously you want a company that can maintain their, their cash flow even with lower prices.

And some of these companies, like Peyto's a great example, and, and Tourmaline's known for that as well.

So there's, yeah, there's opportunity either way depending your long-term view on, on natural gas, which, you know, ours is, is bullish and, you know.

I put it on my top picks last month, if you go back to my last [laughs] show.

Um, Tourmaline.

Um, so it, it's, it's got kind of a gentle uptrend, and it's got a little bit of a trading pattern.

This isn't, uh, quite as neat and tidy as some of the swing patterns that I like trading but, you know, it's there.

Go ahead with your question.

Oh, good afternoon, gentlemen.

Uh, Mr. Richards, uh, could you give me your technical analysis on Tourmaline, ticker TOU? It's been quite active recently, so I'll listen to your call.

Okay.

Um, my question is related to, um, Topaz Energy.

Um, this transaction is from Tourmaline Oil.

Is it going to affect the stock price, or what do you think about this, uh, company anyway? Thank you.

Okay.

Thank you for the question.

Uh, what is the transaction?

Yeah, so Tourmaline filed an early warning notice that they're going to use some of their Topaz shares I think to fund an acquisition.

Oh, got it.

Here it is.

Let's go to Tourmaline Oil, TOU on the TSX.

At the time, it was 63.65, down to 61.38. Today, 4% drop, 1% for total return.

A pretty volatile chart that I was just looking at.

I believe it was spun out of a different energy company back in 2021.

You're operating in the South Clearwater and Manville stack, and you also have a joint venture with Tourmaline, which is a big energy company people will recognize.

But I guess walk us through the journey here over the last five years of how you've grown the company.

Great.

So the assets are quite focused on those two large properties with exploration potential, still looking to identify some new opportunities there too.

I mentioned Perpetual.

And in your opening, you talked about the joint venture that we have with Tourmaline.

Well, today, we announced that we actually, so we got into that joint venture through the recombination back with Perpetual back in Q4 of 2024.

Short-term, there may be a headwind.

There was news overnight that Tourmaline entered into a few deals.

They paid for it in Topaz stock, divesting themselves.

I think Tourmaline now owns roughly 12%, 13% of Topaz.

But I think it's probably not a stretch of the imagination to think that that stock may come to the market at some point, depending on price.

Maybe we play on that.

I think maybe one of them historically was not.

And then, you know, there's Tourmaline, which has always been a very successful natural gas producer.

They have their own version of integration with some midstream and takeaway capabilities.

And there are definitely other kind of, you probably would call them junior EMPs or something like that, that have had success as well.

I'm a huge fan of Jamie.

It's an honor to get some questions from him.

It's your CFO of Tourmaline now, so...

I did not know that.

But Canadian natural gas, I think, will continue to do well.

Some of the big ones, though, I know that, you know, if you watch something like Tourmaline, it's been really frustrating for a lot of investors just because even with the high commodity prices that we've seen in a number of other areas, that stock just keeps going sideways.

So it is natural gas has always been challenging.

And, you know, it's referred to in the industry as the widow maker because it's so challenging to to to trade and to really try to forecast where it's going.