Q: Hi 5i team. What do you make of Tourmaline's January 14 news regarding their EP activity update and dividend news? The stock has been taking quite a kicking today. Can you shed any light on why the market is down on this name? Thanks.
5i Research Answer:
The update was relatively brief, but we would consider it positive. Production continues to be strong, and four special dividends are planned in 2024. Asset sales will further enhance the already-strong balance sheet and allow for more share buybacks. The sector continues to struggle and nat gas declined 12.5% yesterday. We would see the weakness as more sector-related than anything company-specific.