CALGARY,
AB, June 1, 2022 /CNW/ - Tourmaline Oil
Corp. (TSX: TOU) ("Tourmaline" or the "Company")
is pleased to announce that its Board of Directors has declared a
quarterly cash dividend on its common shares of C$0.225 per common share. This represents an
increase of C$0.10 per common share
on an annualized basis. The dividend will be payable on
June 30, 2022 to shareholders of
record at the close of business on June 15,
2022. This quarterly cash dividend is designated as an
"eligible dividend" for Canadian income tax purposes.
The continued, sustained, strong operational and financial
performance have allowed Tourmaline to increase the current base
dividend by 12.5% to C$0.90 per
year. The free cash flow generation outlook continues to
improve for both 2022 and 2023 as strip prices continue to
increase. Tourmaline remains committed to returning the
majority of free cash flow to its shareholders. Total
trailing twelve-month dividends have provided for a dividend
yield of 5.5%([1]), prior to the most recently
announced base increase as well as any further special dividends
paid in the third and fourth quarters of 2022.
Tourmaline also announces that the nominees listed in its
information circular dated April 14,
2022 were elected as directors of Tourmaline at its annual
meeting of shareholders held on June 1,
2022 (the "Meeting"). All matters presented for
approval at the Meeting, including the election of directors and
appointment of auditors, were approved by Tourmaline's
shareholders. A report of voting results will be available on SEDAR
at www.sedar.com.
On a vote by poll, each of the following ten nominees proposed
by management was elected as a director of Tourmaline:
Nominee
|
|
Votes For
|
|
% For
|
|
Votes Withheld
|
|
% Withheld
|
Michael L.
Rose
|
|
228,403,386
|
|
96.60
|
|
8,038,872
|
|
3.40
|
Brian G.
Robinson
|
|
214,824,368
|
|
90.86
|
|
21,617,890
|
|
9.14
|
Jill T.
Angevine
|
|
230,353,682
|
|
97.42
|
|
6,088,576
|
|
2.58
|
William D.
Armstrong
|
|
234,112,021
|
|
99.01
|
|
2,330,237
|
|
0.99
|
Lee A. Baker
|
|
231,225,511
|
|
97.79
|
|
5,216,747
|
|
2.21
|
John W.
Elick
|
|
234,884,151
|
|
99.34
|
|
1,558,107
|
|
0.66
|
Andrew B.
MacDonald
|
|
209,121,006
|
|
88.44
|
|
27,321,252
|
|
11.56
|
Lucy M.
Miller
|
|
230,034,143
|
|
97.29
|
|
6,408,115
|
|
2.71
|
Janet L.
Weiss
|
|
235,408,625
|
|
99.56
|
|
1,033,633
|
|
0.44
|
Ronald C.
Wigham
|
|
232,566,083
|
|
98.36
|
|
3,876,175
|
|
1.64
|
______________________________________
|
(1)
Calculated as total dividends paid in the last twelve months
of $4.21 per common share divided by the closing share price of
$76.24/share on May 25, 2022.
|
Reader Advisories
CURRENCY
All amounts in this news release are stated in Canadian dollars
unless otherwise specified.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information and
statements (collectively, "forward-looking information")
within the meaning of applicable securities laws. The use of any of
the words "forecast", "expect", "anticipate", "continue",
"estimate", "objective", "ongoing", "on track", "may", "will",
"project", "should", "believe", "plans", "intends" and similar
expressions are intended to identify forward-looking information.
More particularly and without limitation, this news release
contains forward-looking information concerning the Company's
outlook for free cash flow generation and the future declaration
and payment of dividends and the timing and amount thereof which
assumes the availability of free cash flow to fund such dividends.
The forward-looking information is based on certain key
expectations and assumptions made by Tourmaline, including
expectations and assumptions concerning the following: prevailing
and future commodity prices and currency exchange rates; the degree
to which Tourmaline's operations and production will be disrupted
by circumstances attributable to the COVID-19 pandemic and the
responses of governments and the public to the pandemic; applicable
royalty rates and tax laws; interest rates; future well production
rates and reserve volumes; operating costs, the timing of receipt
of regulatory approvals; the performance of existing wells; the
success obtained in drilling new wells; anticipated timing and
results of capital expenditures; the sufficiency of budgeted
capital expenditures in carrying out planned activities; the
timing, location and extent of future drilling operations; the
benefits to be derived from acquisitions; the state of the economy
and the exploration and production business including the impacts
of the COVID-19 pandemic and the responses of governments and
the public to the pandemic thereon; the availability and cost of
financing, labour and services; ability to maintain its investment
grade credit rating; and ability to market crude oil, natural gas
and natural gas liquids successfully. Without limitation of the
foregoing, future dividend payments, if any, and the level thereof
is uncertain, as the Company's dividend policy and the funds
available for the payment of dividends from time to time is
dependent upon, among other things, free cash flow, financial
requirements for the Company's operations and the execution
of its growth strategy, fluctuations in working capital and the
timing and amount of capital expenditures, debt service
requirements and other factors beyond the Company's control.
Further, the ability of Tourmaline to pay dividends will be subject
to applicable laws (including the satisfaction of the solvency test
contained in applicable corporate legislation) and contractual
restrictions contained in the instruments governing its
indebtedness, including its credit facility.
Although Tourmaline believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking information because Tourmaline can give no
assurances that it will prove to be correct. Since forward-looking
information addresses future events and conditions, by its very
nature it involves inherent risks and uncertainties. Actual results
could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to:
the risks associated with the oil and gas industry in general such
as operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertain impacts
of COVID-19 on Tourmaline's business, and the societal, economic
and governmental response to COVID-19; the uncertainty of estimates
and projections relating to reserves, production, revenues, costs
and expenses; health, safety and environmental risks; commodity
price and exchange rate fluctuations; interest rate fluctuations;
marketing and transportation; loss of markets; environmental risks;
competition; incorrect assessment of the value of acquisitions;
failure to complete or realize the anticipated benefits of
acquisitions or dispositions; ability to access sufficient capital
from internal and external sources; uncertainties associated with
counterparty credit risk; failure to obtain required regulatory and
other approvals; climate change risks; inflation; supply chain
risks; the impact of wars (including the war in Ukraine), hostilities, civil insurrections,
pandemics, epidemics or outbreaks of an infectious disease in
Canada or worldwide; and changes
in legislation, including but not limited to tax laws, royalties
and environmental regulations. Readers are cautioned that the
foregoing list of factors is not exhaustive.
Additional information on these and other factors that could
affect Tourmaline, or its operations or financial results, are
included in the Company's most recently filed Management's
Discussion and Analysis (See "Forward-Looking Statements" therein),
Annual Information Form (See "Risk Factors" and "Forward-Looking
Statements" therein) and other reports on file with applicable
securities regulatory authorities and may be accessed through the
SEDAR website (www.sedar.com) or Tourmaline's website
(www.tourmalineoil.com).
The forward-looking information contained in this news release
is made as of the date hereof and Tourmaline undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless expressly required by applicable securities
laws.
ABOUT TOURMALINE OIL CORP.
Tourmaline is Canada's largest
and most active natural gas producer dedicated to producing the
lowest-emission and lowest-cost natural gas in North America. We are an investment grade
exploration and production company providing strong and predictable
operating and financial performance through the development of our
three core areas in the Western Canadian Sedimentary Basin. With
our existing large reserve base, decades-long drilling inventory,
relentless focus on execution and cost management, and
industry-leading environmental performance, we are excited to
provide shareholders an excellent return on capital, and an
attractive source of income through our base dividend and surplus
free cash flow distribution strategies.
SOURCE Tourmaline Oil Corp.