
TSE:TOU
This summary was created by AI, based on 60 opinions in the last 12 months.
Tourmaline Oil Corp (TOU-T) is recognized as Canada's largest natural gas producer, positioned strategically to benefit from growing LNG markets and rising energy demand. Analysts generally highlight strong management and commend the company's approach to capital allocation, focusing on infrastructure and future growth. Although the stock has experienced a range-bound performance, most experts believe that it holds significant upside potential with the improvement of natural gas prices anticipated in the coming years. The company provides a respectable dividend and special dividends, which reinforces its attractiveness as a long-term investment. Concerns around current nat gas prices and market volatility are present, but many experts advocate holding or accumulating shares, viewing the long-term prospects favorably.
It sold off because it is being punished by short term investors for long term thinking. It is increasing its capex for the next five years which will result in accelerating cash flow in 2030 and 2031. Investors want companies to return capital to shareholders now but not much has been happening with many of them. Tourmaline has strong management so you could step in for the long term. It has been able to grow and return capital to shareholders but it will be less now with the increased capex.
Temperatures are starting to moderate, and nat gas prices are down. Overproduction in US. Ramp-up of LNG Canada slower than expected, but should be picking up.
She's actually buying more ARX for clients, not trimming. Embedded growth via inventory through reserves. Likes that a lot of its prices are hedged to higher international gas prices (instead of Canadian). Doesn't need to acquire to fund growth, whereas TOU does.
If she were going to own 2 names, she would also own TOU. But she doesn't. ARX is first in the pecking order. If you have the patience perhaps hold onto TOU a bit longer, as we are getting into the colder months.
One of his basic tenets is that if a stock isn't behaving the way you think it should based on what you think you know, then assume you might be missing something. You need discipline around selling a position. He wants to own the leading companies fundamentally and technically.
We are in a seasonally weak period for gas; wait for that to firm up before putting $$ to work. In early spring he was 12% energy, now down to 6%. TOU trading better than only 19% of companies in the S&P, relatively weak. Breadth in energy sector has been weak. Will turn around at some point, but can't say when.
Quality name. Largest player in nat gas in Canada, with the largest reserves and the lowest cost. Top of the environmental sustainability ratings. We just built a big gas export terminal. Natural gas will power AI for at least 10 years until nuclear can get more established. Outlook for gas is strong. Lots of gas around, so pricing may not be that good but volumes will increase nicely. Yield is 3.44%.
(Analysts’ price target is $75.00)Being affected by volatility in energy prices. Not a large company like a SU or CNQ that can weather the storm. He owns it more as a speculative play. OK as a 1-2% position maximum as long as you have a diversified portfolio. No fundamental issues, still thinks poised for growth long term. Needs to continue ramping up production.
Good time to buy. He bought in last month or so. Very good operator. Secret sauce is that it has the best drilling inventory, many decades worth. Largest nat gas producer in Canada, about 13-14%. Owns much of its own infrastructure, which gives them operational flexibility. Smart about diversifying away from a single access point for delivery. Shareholder friendly. Importantly, CEO is a very large shareholder.
Lots of optimism about the future of LNG in both Canadian and US natural gas stocks. Remember though, we're in the middle of July and that's not generally a friendly time of year for these companies. No fundamental issue. Doesn't see gas prices being broken. Give it a bit of space. As we get closer to fall, if you have time, you're probably in good shape.
It's actually natural gas ;) There's an incredibly low gas price, as there's just too much gas in the system. There's an idea that by 2026, there might actually be a tighter gas market for the first time in a long time. Special dividends equivalent to the current yield. Collect your dividends and wait for that catalyst. Incredibly successful Canadian story.
We're now exporting gas to other countries. Highest-quality company he can find while he waits for the catalyst to kick in. Yield is 3.2%.
He has a small position. Chart shows basing since 2023. Thinks it will do quite well for investors; as to when, he's not sure. Great balance sheet. Well run, and he's convinced it'll be taken out one day. So hold on and get rewarded someday.
If it breaks below $50 or so, will probably end up around $40-45.