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TOURMALINE COIL CORP . NEWS RELEASE JULY 28 , 2021 TOURMALINE'S SECOND QUARTER 2021 DELIVERS RECORD FREE CASH FLOW Calgary , Alberta - Tourmaline Oil Corp. ( TSX : TOU ) ( " Tourmaline " or the " Company " ) is pleased to release financial and operating results for the second quarter of 2021 . HIGHLIGHTS • • Second quarter 2021 cash flow ( 1 ) of $ 1.89 per diluted share , record free cash flow ( 2 ) of $ 343.9 million , and average production of 410,339 boepd , exceeding the high end of expectations despite challenging operating conditions in June's heat wave . The updated five - year plan , at current strip pricing ( 3 ) , delivers $ 1.8 billion of FCF in 2022 and $ 7.0 billion over the full five - year duration of the plan . The 2022 free cash flow equates to over $ 5.50 per basic share , a FCF yield of 16 % ( 4 ) and reduces the 2022 total payout ratio ( 5 ) to 48 % . • Received a credit rating upgrade from BBB to BBB ( high ) , in July 2021 , by DBRS Morningstar . • • The Company now expects to achieve year - end 2021 net debt ( 6 ) of approximately $ 1 billion ( less than 0.4 times debt to cash flow , and less than one times annual FCF ) . As at July 15 , 2021 , Tourmaline's Topaz equity ownership was valued at $ 939.7 million ( 7 ) , which essentially offsets the estimated year - end net debt . With incremental volumes on the GTN Malin / PG & E system and the Company's recently announced Gulf Coast LNG pathway in 2023 , Tourmaline will have 905 mmcfpd exposed to export markets on firm , long - term transport agreements at exit 2023. Tourmaline's largest export market , PG & E California , is currently trading at $ 5.50 / mmbtu ( US ) . PRODUCTION UPDATE • Second quarter 2021 average production was 410,339 boepd ( 414,387 boepd prior to storage injections in California and Dawn ) , a 37 % increase over Q2 2020 ( 299,369 boepd ) . ( 1 ) " Cash flow " is defined as cash provided by operations before changes in non - cash operating working capital . See " Non - GAAP Financial Measures " in this news release and in the Company's Q2 2021 Management's Discussion and Analysis . ( 2 ) " Free cash flow " or " FCF " is defined as cash flow less total net capital expenditures . Total net capital expenditures is defined as total capital spending before acquisitions and non - core dispositions . Free cash flow is prior to dividend payments . See " Non - GAAP Financial Measures " in this news release and the Company's Q2 2021 Management's Discussion and Analysis . ( 3 ) Based on oil and gas commodity strip pricing at July 15 , 2021 . ( 4 ) Based on a share price of $ 34 per common share . ( 5 ) The total payout ratio for 2022 is calculated as the sum of dividends paid and total net capital spending divided by annual cash flow . 50 ( 6 ) " Net debt " is defined as bank debt and senior unsecured notes plus working capital deficit ( adjusted for the fair value of financial instruments , short - term lease liabilities , short - term decommissioning obligations and unrealized foreign exchange in working capital deficit ) . See " Non - GAAP Financial Measures " in this news release and in the Company's Q2 2021 Management's Discussion and Analysis . ( 7 ) Based on a Topaz closing price on the TSX of $ 16.16 per common share . 1