TORC Oil & Gas Ltd. Announces Third Quarter 2020 Financial & Operational Results

Due to the proactive reduction in the 2020 budget, TORC was able to reduce net debt from $382.1 million as at June 30, 2020 to $359.7 million as at September 30, 2020.  Based on current commodity prices and budgeted costs, the Company expects to achieve free cash flow above the current capital program during the remainder of 2020.  The free cash flow will continue to position the Company to further reduce debt and take advantage of opportunities to enhance the growth, sustainability and repeatability of the Company’s business model. 

TORC’s asset base provides flexibility in volatile commodity price environments due to the following key characteristics: greater than 90% operated capital program to control capital spending, low decline rate, year-round access, low capital costs per well, no drilling commitments, limited take-or-pay contracts, and no land expiry concerns.

TORC anticipates announcing the Company’s 2021 capital budget and production guidance in December. 

DIVIDEND

TORC’s dividend strategy is reviewed regularly with the Board of Directors and is an important component of TORC’s overall long-term business plan.  With the crude oil market experiencing a significant and rapid decline in world prices resulting from severe dynamics coinciding with significant impacts to both supply and demand uncertainty, TORC elected to temporarily suspend the monthly dividend during the second quarter.

TORC will continue to assess the free cash flow profile and dividend policy of the Company following a continued increase in economic activity and stability of oil market dynamics.

OUTLOOK

TORC has developed significant trust and credibility as a corporate citizen, which provides a solid foundation for the long-term success of the business.  Sustainability of the business includes focusing on overall social responsibility to support strong values and relationships in the workplace, and communities where TORC operates. 

The stability of the high quality, low decline, light oil assets in southeast Saskatchewan and the low risk Cardium development inventory in central Alberta, combined with exposure to unconventional light oil resource plays in southeast Saskatchewan, positions TORC to provide value creation through a disciplined long term focused growth strategy.

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