Tourmaline Oil initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of Tourmaline Oil (TRMLF) with a Buy rating and C$73 price target The firm is positive on the company’s differentiated exposure to an inflection in North American natural gas fundamentals, anticipating a strong inflection in local Canadian natural gas fundamentals driven by the ramp up of LNG export capacity over the next several months, the analyst tells investors in a research note. The firm adds that Tourmaline is able to support production growth as the company ramps production from 640 Mboe/d in 2025 to ~850 Mboe/d by 2031 – a 5% CAGR – through facility expansion projects over the next several years given the company’s differentiated depth of inventory.