TRMLF - Tourmaline Oil: A Strong Buy As Natural Gas Bottoms (Rating Upgrade)
2024-02-21 15:55:03 ET
Summary
- Tourmaline Oil is Canada's largest natural gas producer, with low capital costs and a strategic advantage in the Alberta Deep Basin.
- The company can sustain growth and dividend payments at a natural gas price threshold of US$1.50 per mcf.
- Despite recent price declines in the natural gas market, Tourmaline's strong balance sheet and cost-efficiency position it well for future growth.
YCharts
In my latest update on Tourmaline Oil Corp. ( OTCPK:TRMLF ), Canada's largest natural gas producer and a significant player in gas processing and midstream operations, the company continues to demonstrate resilience amidst the depressed natural gas market. Its current valuation and rebound prospects make the stock a STRONG BUY , as I argue below.
Tourmaline has distinguished itself not only as Canada's largest natural gas producer but also as a company with remarkably low capital costs, particularly within the Alberta Deep Basin. This strategic advantage is crucial, especially when considering that approximately 80% of Tourmaline's output is natural gas....
Tourmaline Oil: A Strong Buy As Natural Gas Bottoms (Rating Upgrade)