Tourmaline realizes C$3.12 a mcf against a C$1.66 AECO in Q2 and defers growth

Tourmaline reported second-quarter 2026 production of 594,198 boe/d, of which 2,886,412 mcf/d was natural gas, and said it had injected additional gas into storage and deferred activity in response to low second-quarter prices; the AECO 5A benchmark averaged C$1.66 per mcf while the company realized C$3.12 [1]. Cash flow (management's non-GAAP measure) was C$786.1 million against C$822.8 million a year earlier, net earnings C$184.4 million against C$514.6 million, capital spending C$554.8 million and free cash flow C$192.1 million, leaving net debt at C$1.508 billion [1].

The 2026 capital budget is unchanged at C$2.55 billion and the company estimates 2026 free cash flow of C$880 million at strip prices, with full-year production guidance of 620,000 to 640,000 boe/d [1]. It will take a one-year pause between the first and second phases of its northeast British Columbia Montney build-out unless gas prices improve on a sustained basis, and it signed a propane and butane marketing agreement with AltaGas to ship by rail to the Ridley Island terminals; its exposure to Asian and European LNG prices is 220,000 MMBtu a day this year, rising to 333,000 by the end of 2028 [1].

For a U.S. reader the quarter is a clean demonstration of the Alberta gas problem and the Tourmaline answer: the local benchmark was below C$2 and the realized price was above C$3, and the difference came from hedges, storage and contracts rather than from drilling more [1].