TSX:TOU

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Tourmaline Oil

Executive Summary

Tourmaline Oil Corp. acquires, explores for, develops, and produces oil and natural gas properties in the Western Canadian Sedimentary Basin.


Snowflake Analysis

High growth potential and good value.

Share Price & News

How has Tourmaline Oil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TOU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.2%

TOU

3.0%

CA Oil and Gas

2.4%

CA Market


1 Year Return

-25.3%

TOU

-30.0%

CA Oil and Gas

-12.4%

CA Market

Return vs Industry: TOU exceeded the Canadian Oil and Gas industry which returned -30.1% over the past year.

Return vs Market: TOU underperformed the Canadian Market which returned -12.5% over the past year.


Shareholder returns

TOUIndustryMarket
7 Day5.2%3.0%2.4%
30 Day-12.3%-7.2%-1.0%
90 Day38.8%12.8%17.4%
1 Year-22.3%-25.3%-26.2%-30.0%-9.4%-12.4%
3 Year-49.2%-52.7%-25.4%-34.5%4.2%-5.7%
5 Year-63.0%-65.5%-30.1%-42.0%22.1%3.8%

Price Volatility Vs. Market

How volatile is Tourmaline Oil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tourmaline Oil undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TOU (CA$12.37) is trading below our estimate of fair value (CA$83.9)

Significantly Below Fair Value: TOU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TOU is poor value based on its PE Ratio (17.1x) compared to the Oil and Gas industry average (10.9x).

PE vs Market: TOU is poor value based on its PE Ratio (17.1x) compared to the Canadian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: TOU is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: TOU is good value based on its PB Ratio (0.4x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Tourmaline Oil forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOU's forecast earnings growth (42.3% per year) is above the savings rate (1.7%).

Earnings vs Market: TOU's earnings (42.3% per year) are forecast to grow faster than the Canadian market (23.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TOU's revenue (21.1% per year) is forecast to grow faster than the Canadian market (5.4% per year).

High Growth Revenue: TOU's revenue (21.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TOU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tourmaline Oil performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOU has a large one-off loss of CA$209.9M impacting its March 31 2005 financial results.

Growing Profit Margin: TOU's current net profit margins (10.8%) are lower than last year (20.6%).


Past Earnings Growth Analysis

Earnings Trend: TOU's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: TOU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TOU had negative earnings growth (-45.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (-16.2%).


Return on Equity

High ROE: TOU's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Tourmaline Oil's financial position?


Financial Position Analysis

Short Term Liabilities: TOU's short term assets (CA$332.4M) do not cover its short term liabilities (CA$498.1M).

Long Term Liabilities: TOU's short term assets (CA$332.4M) do not cover its long term liabilities (CA$2.7B).


Debt to Equity History and Analysis

Debt Level: TOU's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: TOU's debt to equity ratio has reduced from 25.6% to 19.9% over the past 5 years.

Debt Coverage: TOU's debt is well covered by operating cash flow (72.2%).

Interest Coverage: TOU's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Tourmaline Oil current dividend yield, its reliability and sustainability?

3.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TOU's dividend (3.88%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: TOU's dividend (3.88%) is low compared to the top 25% of dividend payers in the Canadian market (6.04%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TOU has been paying a dividend for less than 10 years.

Growing Dividend: TOU's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.4%), TOU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TOU's dividends in 3 years are forecast to be well covered by earnings (44.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Mike Rose (62yo)

11.92yrs

Tenure

CA$3,373,190

Compensation

Mr. Michael L. Rose, also known as Mike, P.Geol., founded Tourmaline Oil Corp. in September 2008 and has been its Chief Executive Officer and President since August 2008. Mr. Rose was Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD2.49M) is about average for companies of similar size in the Canadian market ($USD3.31M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Rose
Non Independent Chairman11.92yrsCA$3.37m5.93% CA$199.9m
Brian Robinson
VP of Finance11.92yrsCA$1.33m0.45% CA$15.2m
Allan Bush
Chief Operating Officer6.25yrsCA$927.89k0.13% CA$4.3m
Sherra Aspin
Vice President of Marketing2.83yrsCA$751.69k0.014% CA$461.5k
William Kirker
Secretary & General Counsel11.92yrsno datano data
Colin Frostad
Vice President of Exploration0.67yrno data0.0099% CA$334.1k
Sarah Tait
Controller4.83yrsno datano data

6.3yrs

Average Tenure

Experienced Management: TOU's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Rose
Non Independent Chairman11.92yrsCA$3.37m5.93% CA$199.9m
Brian Robinson
VP of Finance11.92yrsCA$1.33m0.45% CA$15.2m
Ronald Wigham
Independent Director4.33yrsCA$101.47k0.16% CA$5.4m
Lee Allan Baker
Independent Director9.33yrsCA$101.47k0.0046% CA$154.7k
John Elick
Independent Director7.33yrsCA$101.47k0.0056% CA$187.8k
Jill Angevine
Independent Director4.67yrsCA$101.47k0.016% CA$522.9k
William Armstrong
Independent Director11.75yrsCA$101.47k0.16% CA$5.4m
Andrew MacDonald
Lead Independent Directorno dataCA$101.47k0.028% CA$939.9k
Janet Weiss
Independent Director0.083yrno datano data
Lucy Miller
Independent Director3.08yrsCA$101.47k0.0031% CA$102.8k

7.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TOU's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TOU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tourmaline Oil Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tourmaline Oil Corp.
  • Ticker: TOU
  • Exchange: TSX
  • Founded: 2008
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$3.371b
  • Shares outstanding: 270.78m
  • Website: https://www.tourmalineoil.com

Number of Employees


Location

  • Tourmaline Oil Corp.
  • 250 - 6th Avenue SW
  • Suite 3700
  • Calgary
  • Alberta
  • T2P 3H7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TOUTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2010
TRML.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2010
08TDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2010

Biography

Tourmaline Oil Corp. acquires, explores for, develops, and produces oil and natural gas properties in the Western Canadian Sedimentary Basin. It holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. The company was founded in 2008 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 23:58
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.