Tourmaline Oil

Tourmaline Oil is a Canadian energy company engaged in the exploration, development, and extraction of crude oil and natural gas. It is headquartered in Calgary, Alberta in Canada. A major natural gas producer, it became the largest natural gas producer in Canada in 2021. It is also the first Canadian oil and gas exploration and development company to directly engage in the liquified natural gas business.

Corporate overview

As of October 2021, Tourmaline was the largest natural gas producer in Canada, and the fifth largest natural gas producer in North America. In Canada, the firm was also the second-largest producer of processed natural gas liquids, and the second-largest producer of natural gas condensate.[4]

Tourmaline primarily focuses on the Alberta Basin, Montney Formation, and Peace River oil sands.[5] Its product mix is 80 percent natural gas and 20 percent crude petroleum and natural gas liquids.[4]

Corporate history

Founding and IPO

Michael L. Rose graduated from Queen's University at Kingston in 1979. He went to work for Shell Canada, where became deeply familiar with the natural gas fields in Alberta and British Columbia. He left Shell and founded Berkley Petroleum in 1993. He sold the company to Anadarko Petroleum in 2001 for CAN$1.5 billion.[6] In June 2001, he founded Duvernay Oil,[7] and sold it to Shell Canada in 2008 for CAN$5.9 billion.[8]

In August 2008, Rose founded Tourmaline Oil.[9] Many members of the leadership team at Berkley Petroleum joined Rose at Duvernay Oil, and moved with him a second time to Tourmaline Oil.[4] Tourmaline's management invested CAN$253 million of their own money to get the company up and running.[10] The company went public in mid-November 2010, raising CAN$228 million.[11] Tourmaline management purchased 30 percent of the stock offering.[10]

From the beginning, Tourmaline management intended to limit the firm's indebtedness. Tourmaline was to be largely self-financing, funding expansion with cash generated from operations.[6]

Early years

Tourmaline Oil grew rapidly by buying up very small producers and owners of mineral rights, and signing farmout agreements. By the end of 2010, it was one of the largest property owners in the Alberta Basin, and was a major producer in the Montney in British Columbia. The company drilled more than 70 wells, and announced plans to drill another 55 in 2011. Production reached 23,000 boe (barrels of oil equivalent) per day, with 85 percent of its product consisting of natural gas.[10] The company issued 4 million new shares in August 2012, raising CAN$117 million.[12] In October, it acquired Huron Energy Corp. for CAN$258 million[13] the next month exploration company APL Oil & Gas for $84 million.[14]

The company quietly absorbed its acquisitions and brought new wells online in 2013, but in 2014 Tourmaline purchased Santonia Energy's Deep Basin assets for CAN$189.1 million. Tourmaline issued 3.23 million new shares to pay for the deal, which brought 221000 acre of new land under Tourmaline's control.[15]

Growth years

The Mapan deal may have foreshadowed a major 2016 acquisition, in which Tourmaline purchased a large amount of non-core Shell Canada mineral assets for nearly CAN$1.04 billion. Tourmaline gained access to 61000 acre in Gundy area on the British Columbia-Alberta border, and 145000 acre in the Deep Basin. The deal included developed and undeveloped land and facilities.[20]

By 2019, Tourmaline Oil and Canadian Natural Resources were tied as Canada's largest natural gas producers. Tourmaline was expected to pass Canadian Natural Resources in 2020, after bringing a natural gas processing plant in British Columbia online.[21] To raise additional capital and achieve what it believed was a more accurate valuation for its businesses, Tourmaline spun off a new company named Topaz Oil to a group of private investors. Topaz Oil took control of Tourmaline mineral rights on 2200000 acre, and a 45 percent silent ownership in two Tourmaline natural gas processing plants.[4]

Tourmaline Oil acquired in November 2020 Modern Resources in a cash and stock deal worth CAN$144 million and Jupiter Resources in an all-stock deal worth CAN$626 million.

type	Public company
foundation	2008
location	2900 250 6th Ave SW Calgary, Alberta, Canada
key people	Michael L. Rose, President & CEO Brian G. Robinson, Vice President, Finance & Chief Financial Officer
industry	Petroleum industry
products	Crude oil Natural gas Natural gas liquids
revenue	CA$5.538 billion‡R1R‡
revenue year	2023
operating income	CA$2.244 billion‡R1R‡
income year	2023
net income	CA$1.736 billion‡R1R‡
net income year	2023
assets	CA$20.097 billion‡R1R‡
assets year	2023
equity	CA$14.016 billion‡R1R‡
equity year	2023
num employees	1045 (2024)‡R2R‡
homepage	https://www.tourmalineoil.com
footnotes	‡R3R‡

Corporate overview

Corporate history

Founding and IPO

Early years

Growth years

Safety

Fossil find

Carbon emissions

External links

References