-- 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.
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Price: $63.52, Change: $-3.33, Percent Change: -4.98%