-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
TOU reported Q1 production of 666,089 boe/d within guidance despite capital deferrals, with net earnings surging to CAD657.6M from CAD212.7M prior year. Cash flow declined 10% to CAD862.2M on lower North American gas prices, though free cash flow increased 36% to CAD202.0M benefiting from CAD350M capital reduction. TOU's scale and marketing diversification should pay off in coming quarters, with hedging covering 930 mmcf/d for remainder of 2026 at CAD5.13/mcf and 45% of propane receiving AFEI pricing that has appreciated 25% since late February. Management updated 2026/2027 free cash flow guidance to approximately CAD0.9B annually. Well performance continued outpacing historical averages with NEBC Montney wells up 13% and Alberta Deep Basin wells up 6% versus 2020-2025 averages. The company plans to drill 280 net wells in 2026 with CAD200M of additional capital identified for potential deferral, maintaining multi-decade development inventory with only 15.4% of drilling inventory booked.