CALGARY, AB, Sept. 9, 2020 /CNW/ - Tourmaline Oil Corp.
(TSX - TOU) ("Tourmaline" or the "Company") is
pleased to announce that on September 9,
2020 it has been assigned an issuer rating of BBB with a
stable trend from DBRS Limited.
This public investment grade credit rating helps validate the
overall financial health of Tourmaline as a stable, low-risk,
senior North American oil and gas producer. As the largest
producer of natural gas in Canada
with one of the lowest cost structures, the Company has been able
to maintain low leverage at attractive interest rates through
prolonged periods of weak commodity prices while growing
production, cash flow and dividends. This positions the
Company well going forward as North American gas price fundamentals
continue to improve.
The Company believes that an investment grade rating will
provide confidence to the market to effectively and efficiently
evaluate and assess credit risk as well as help in obtaining and
managing debt on favourable terms and provide for better
benchmarking comparisons.
Reader Advisories
Credit ratings
Credit ratings are intended to provide investors with an
independent measure of credit quality of an issue of
securities. Credit ratings are not recommendations to
purchase, hold or sell securities and do not address the market
price or suitability of a specific security for a particular
investor. There is no assurance that any rating will remain
in effect for any given period of time or that any rating will not
be revised or withdrawn entirely by a rating agency in the future
if, in its judgment, circumstances so warrant.
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 benefits to be
derived from an investment grade credit rating, including providing
market confidence, evaluating and assessing credit risk, the
ability to obtain and manage debt on favourable terms and better
benchmarking comparisons. 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;
the ability to maintain an investment grade credit rating;
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; 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;
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 a Canadian senior crude oil and natural gas
exploration and production company focused on long-term growth
through an aggressive exploration, development, production and
acquisition program in the Western Canadian Sedimentary Basin.
SOURCE Tourmaline Oil Corp.