Tourmaline Oil Corp (TOU.TO)

Canada's largest natural gas producer, nearly 15% of Canada's NG. Also, they produce 100,000 barrels daily of oil. TOU is a lean, low-cost operator. Warm weather is keeping nat gas prices low this winter, though. They struck a deal with Cheniere to ship their nat gas to the Gulf of Mexico and is shipped to Asia to fetch higher prices (10x higher). Including special dividends, their yield totals 12%. Also, LNG Canada will open next summer on the west coast which should boost demand for Canadian nat gas.

It has a special dividend policy on top of its base dividend. Has a great management team along with great assets. She prefers ARC which has more exposure to liquid rich gas. Gas will still  be needed along with nuclear partly due to coal coming off line and the demand for power. Renewables are good but we don't have the technology for battery storage.

Big fan of ownership/leadership of company (Mike Rose). Concern is that company is not under valued compared to peers in sector. Concern is that natural gas is over supplied. Overall a high quality company. Very strong marketing team also helps (strong pricing for natural gas). 

Well-run and a major oil producer. Very levered to natural gas, which is under a little pressure now. But they enjoy low costs. Nat gas prices may sell off a little more, but TOU looks compelling now.

Has been buying recently given weakness in share price. Commodity price unpredictable, but good overall business. Strong management team and natural gas a good bridge fuel. Would recommend buying. 

Keep it, despite the drop. Valuation is fantastic. He took only a 1/2 position, down 15% on that, but comfortable. Could get more volatility, but in 2-3 years you'll be pretty happy. Big money interest. Make sure it's a reasonable size in your portfolio.

Commodity price downturn has been pretty abrupt, but still nice levels for Canadian producers. $70 crude converted to CAD is still a pretty nice number. On the gas side, transformational event will be LNG Canada egress coming on late 2024 and early 2025. It will make capital budgets more dependable. Can deploy capital here, but keep powder dry in case of economic or commodity weakness.

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Has owned this a long time. The chart has done very well. Every time shares gap higher, he trims to reduce his weighting. TOU is set up very well for the long-time; Canada LNG is in the sweet spot. Happy to hold this for a long time.

Best company to own natural gas in Canada. Excellent management team. Very good growth. Excellent marketing team that secures good pricing. Pipeline expansion in Canada will benefit company. Con to the business is that natural gas is commodity under pressure. Overall, a strong business. Would recommend buying. 

High exposure to natural gas. Strong support around $2mcf. Believes gas has upside which is good for Tourmaline. Would recommend buying.

Editor's Note - The question was more related to the oil and gas sector in general. The sector is down and not growing much so wait for a pullback before buying stock in these companies. There has been less capital spending in the industry than before so there could be supply chain constraints going forward. Companies have been paying cash flow back to shareholders through dividends and share buybacks. He doesn't own Tourmaline but it is a great company.

Natural gas has challenges with large storage numbers. Best natural gas producer in Canada. Excellent management team with best in class operations. Current valuation high compared to others in sector. Positive cash flow profile with excellent balance sheet. Safe dividend with expected growth. Would recommend buying. 

It is a very high quality company and a household name. A top priority is returning cash to its shareholders. It is the largest Canadian company in its field and the fifth largest in North America. Its recent earnings were fantastic. It is mostly natural gas and there will some price movement with the changing price of energy.      Buy 15  Hold 1  Sell 0

Offers growth and share buybacks. Reported great Q3 earnings. Expects long-term growth in natural gas, because it will allow the transition from fossil fuels to renewable energy. The transition won't be sudden.