Opinions Stockchase Insights
Tourmaline Oil CorpTOU.TOBUYApr 29, 2024
Stockchase InsightsStock price when the opinion was issued
As of Aug 06, 2026. Market Open.
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Her firm's replacement for ARX. Below $60 is a good time to buy. Largest nat gas producer in Canada, low cost. Nat gas prices are very low right now, but she's very positive on them in future.
Rebecca TeltscherAbout 80% gas, 20% oil. One of the big 6 names in Canada. Widely held, and by lots of institutions. ARX is being taken out, so this name is the last one standing that's predominantly gas. Very well run. Trades ~7x cashflow, fairly valued, not a lot of upside. Fairly heavy capex program.
Not a huge fan of Canadian nat gas, as pricing in Western Canada is atrocious. He's more favourable to Canadian oil. Dividend is ~3.5%.
Iran conflict prompted a lot of natural gas drilling in the US, and so the price collapsed. LNG Canada allows exports to higher-priced markets in Asia. New floating gasification plants will also add capacity. More upside. (You could take some of your oil profits and redeploy into gas names, which look really cheap.)
Darren SissonsHer replacement for ARX, which is being bought by SHEL. Lots of upside with potential LNG expansion. Real disruption of supply with the Strait of Hormuz. Other countries are looking to our safe jurisdiction.
Good management team, great assets. Yield is 3.28%.
Rebecca TeltscherIt's the biggest Canadian natural gas driller, but hasn't benefited from the US-Iran war, because North American nat gas prices have held (can't ship it abroad). TOU is managed well. They're building their infrastructure to lower the cost of the gas fields and this coincides with higher nat gas prices. Free cash flows will spike as capex falls and LNG contracts kick in.
(Analysts’ price target is $70.72)
The best-run natural gas play in Canada. The stock is volatile, so you can trade it.
Bruce MurrayPaying you really well to wait. At the time, he bought it for the nat gas market finally turning; all those catalysts are still in place. Still cheaper than it ought to be. Not an "if" story, just a matter of time. Sit and enjoy your dividend; will start to work probably in the not-too-distant future.
Greg NewmanAll energy stocks have come off because we've had (cynically) a "peace scare" in the Middle East. This company's big thing is natural gas, and he likes that. Energy sector will continue to be robust.
Also likes, and owns, CVE and PPL.
Brendan CaldwellThe US-Iran war changed the LNG world, given the Strait of Hormuz closure. This gives Canada a huge opportunity. TOU already supplies US producers.
(Analysts’ price target is $71.84)
Ryan BushellHe likes energy stocks. It's rangebound between $58 to nearly $70. So buy and sell at the bottom and top of this range. He collects the dividend.
Keith RichardsNever discount the important of dividends to your total return! Underwhelming, while a lot of other energy stocks have really taken off. Has "oil" in its name, but it's actually Canada's largest nat gas producer. SHEL acquisition of ARX was a watershed moment in the Canadian oil patch and, in particular, nat gas.
Still grossly undervalued.
Brian MaddenExporting through LNG Canada to capture Asian pricing for nat gas is going to be big.
Darren SissonsLike both, but TOU has been sideways, because they are investing in capex, but turning back to shareholder returns. So, TOU should return to vogue. TVE has been a tear lately but trades at 11x forward PE with good growth. TVE will be a little more volatile.
"Regular" dividends are 30c quarterly, for a yield of 1.7%. However, TOU pays a special dividend approximately every four months as well, and we have tried to capture that in the yield, as it has done this for four years in a row and intends to keep doing so. In the past year TOU has paid special dividends of 50 cents (March 2024), $1.00 (November 2023), $1.00 (August 2023) and $1.50 (May 2023).
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