Tudor, Pickering, Holt on Thursday Maintained its buy rating on the shares of Tourmaline Oil (TOU.TO) with a C$77.00 price target following the company's first-quarter results.
"Calling the overall update neutral, with (i) mixed Q1 headline metrics including a miss on cash flow that was more than offset by capex and (ii) short-term outlook changes reflecting responses to the macro. On Q1'26 results, 666mboepd production was ~in-line with TPHe/Street 666/664 and the guidance high (655-665 range), though C$862MM cash flow missed TPHe/Street C$929MM/C$884MM (C$2.21 on a per share basis vs. TPHe/Street C$2.39/C$2.33; delta vs. TPHe primarily owing to gas and NGL realizations). However, C$202MM FCF still came in mildly better than consensus, comparing to TPHe/Street C$220MM/C$193MM, aided by capex (C$643MM E&P vs. TPHe/Street C$709MM/C$691MM). Looking ahead to Q2'26, production outlook of 595-605 comes in lighter vs. consensus 619, though owes to curtailments which we see as prudent given market conditions (company to utilize its new AltaGas Dimsdale storage capacity alongside pre-existing long-term Dan / Cali storage facilities)," analyst Jeoffrey Lambujon wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 63.52, Change: -3.33, Percent Change: -4.98
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