Mr. Michael Rose reports

TOURMALINE DELIVERS STRONG FREE CASH FLOW AND DECLARES A SPECIAL DIVIDEND

Tourmaline Oil Corp. has released its financial and operating results for the second quarter of 2023, and declared a special dividend.

Highlights:

• Second quarter cash flow (1)(2) of $784.0-million ($2.28 per diluted share (3));
• Generated quarterly free cash flow (4) (FCF) of $545.5-million ($1.59 per diluted share) enabling the company to declare a special dividend of $1.00 per common share to be paid on Aug. 22, 2023, to holders of record on Aug. 14, 2023. Tourmaline has distributed total dividends of $7.74 per share (inclusive of this Aug. 22, 2023 special dividend) since Sept. 1, 2022, an implied 12-per-cent trailing yield (5).
• Full-year 2023 free cash flow forecast of $1.8-billion (6) coupled with quarterly special dividends for the balance of 2023 (2022 free cash flow -- $3.2-billion).
• Tourmaline realized Q2 2023 net earnings of $510.7-million ($1.49 per diluted share).
• June 30, 2023 net debt (7) of $791.1-million or 0.2 times 2023 full-year forecast cash flow of $3.62 billion, based on commodity strip pricing at July 14, 2023.
• Continued strong results from the North Montney delineation program with pad payouts in as little as three months.

Production update:

• Second quarter 2023 production averaged 495,918 boepd and, as previously disclosed, was impacted by wildfires in both the Alberta Deep basin and in the NEBC Montney gas complex. The total Q2 fire-related production impact was 17,000 boepd or approximately 3 per cent. Second quarter production was also reduced by 6,213 boepd due to seasonal storage injections at Dawn and in California.
• All Tourmaline-operated production facilities in both complexes were returned to normal operations by the second half of June, 2023. A portion of the company production accessing third-party facilities in the North Montney, adjacent to the Donnie Creek fire area, remains slightly below expected levels (2,000 -- 3,000 boepd reduction during July).
• The multiple wildfire outbreaks in both gas complexes delayed the start-up of postspring breakup drilling and completion activities, and will reduce Q3 production volumes. Q3 2023 average production of 495,000 to 505,000 boepd is now anticipated. Tourmaline continues to expect 2023 exit production levels in excess of 550,000 boepd, and the 2024 average production guidance of 550,000 boepd remains unchanged. The company is now operating the full 13 rig drilling fleet but does not believe it to be prudent to add additional rigs and capital to the second half 2023 program in order to offset the fire-related activity and production deferral. 2023 full-year average production is now anticipated to be 520,000 boepd, at the low end of original 2023 production guidance range of 520,000 to 540,000 boepd.

Financial results:

• Second quarter 2023 cash flow was $784.0-million ($2.28 per diluted share) on total capital expenditures (8) of $277.3-million (EP spending (9) of $225.4-million in Q2), generating free cash flow of $545.5-million for the quarter ($1.59 per diluted share).
• Tourmaline realized Q2 2023 net earnings of $510.7-million ($1.49 per diluted share).
• Exit Q2 2023 net debt was $791.1-million, well below the company's long-term net debt target of $1.0-billion to $1.2-billion. Tourmaline is in a surplus position when including the value of its 45.1-million shares of Topaz Energy Corp. (valued at $931.4-million using the closing price of the Topaz common shares on June 30, 2023, of $20.63/share).
• The continued strong free cash flow generation in Q2 allows the company to declare and pay a special dividend of $1.00/share on Aug. 22, 2023, to shareholders of record on Aug. 14, 2023. This special cash dividend is designated as an eligible dividend for Canadian income tax purposes.

MARKETING UPDATE

• Average realized natural gas price was C$4.31/mcf in Q2 2023, significantly higher than the AECO 5A benchmark price of C$2.46/mcf over the period.
• Tourmaline has an average of 779 mmcfpd hedged at a weighted average fixed price of C$5.32/mcf, an average of 142 mmcfpd hedged at a basis to NYMEX of US$0.44/mcf, and an average of 776 mmcfpd of unhedged volumes exposed to export markets in the second half of 2023. Of this 776 mmcfpd, 69 per cent is exposed to premium markets such as the U.S. Gulf Coast, JKM, Malin, PGE, and Sumas.
• Tourmaline has an average of 582 mmcfpd hedged at a weighted average fixed price of C$5.27/mcf, an average of 129 mmcfpd hedged at a basis to NYMEX of US$-0.10/mcf, and an average of 863 mmcfpd of unhedged volumes exposed to export markets in 2024. Of this 863 mmcfpd, 66 per cent is exposed to premium markets such as the U.S. Gulf Coast, JKM, Malin, PGE, and Sumas.
• In Q2 2023, Tourmaline entered into an incremental 106 mmcfpd in export contracts, increasing total exports to 1.03 bcf/d of natural gas by exit 2023.
• Tourmaline has joined Rockies LNG Partners and is excited to assist in moving the Ksi Lisims LNG project forward. The company will continue to expand the size and breadth of its LNG business, both short and long term.

EP UPDATE

• Tourmaline is currently operating 13 drilling rigs and four frac spreads across the three EP complexes.
• The company drilled 105.4 net wells, completed 95.5 net wells during 1H 2023, and has an inventory of 43 net DUCs entering into Q3 2023.
• Tourmaline has successfully drilled two additional new pool wildcats in July 2023, bringing the total exploration new pool/new zone successes to 17 over the past three years.

SOUTH MONTNEY UPDATE

• Tourmaline is evolving a new growth project in the South Montney complex in addition to the planned major North Montney development. The company will decide on ultimate project timing and scale over the next few quarters.
• As part of the project, the company has acquired 28 gross sections (15 net) of additional land for $25-million, with 135 internally estimated, incremental Montney drilling locations. Tourmaline also completed a complementary acquisition for $32.5-million in Q2 2023 that facilitates future expansions of operated gas and liquid processing capacity in the South Montney complex.

NORTH MONTNEY UPDATE

• Tourmaline continues to prepare the execution plan for the 100,000 boepd Conroy North Montney development project in the 2025-2027 time frame. Initial expenditures will commence in 2024 on newly acquired permits in the project area.
• A total of 18 Conroy-Aitken delineation pads have been drilled and completed over the past two years in advance of the major facility-filling development program as the company refines gas and liquid performance curves and optimum completion designs.
• The b-10-B pad at Aitken underscores the very strong economic returns in the general North Montney area. The six-well pad was drilled, completed, and brought onstream in late Q4 2021. Average per well IP 365 was 5.3 mmcf/d of natural gas and 224 bbls/d of condensate. Average per well recovery after 18 months onstream is 2.6 bcf of natural gas and 99 mbbls of condensate, and estimated average 2P reserves per well are 12.6 bcf of natural gas and 260 mbbls of condensate.
• Total capital investment in construction, drilling, completions, equipping, and pipeline tie-in for the six-well pad was $30.6-million. The income earned to date (revenue, net of royalties and directly attributable operating expenses) on the six-well pad is in excess of $130-million (before tax) resulting in a payout period of three months. The forecasted internal rate of return of the pad is well in excess of 1000 per cent, making it one of the most economic projects in the Company's history.
• The company has received 97 new permits in the area to date in 2023, including a significant portion of new surface disturbance permits.

NORMAL COURSE ISSUER BID

• Tourmaline is also pleased to announce that the Toronto Stock Exchange (the "TSX") has approved the renewal of Tourmaline's normal course issuer bid (the "NCIB").
• The NCIB allows Tourmaline to purchase up to 16,989,041 common shares (representing 5 per cent of its issued and outstanding common shares as of July 25, 2023) over a period of twelve months commencing on August 8, 2023. The NCIB will expire no later than August 7, 2024. Under the NCIB, common shares may be repurchased in open market transactions on the TSX and other alternative trading platforms in Canada and in accordance with the rules of the TSX governing NCIBs. The total number of common shares Tourmaline is permitted to purchase is subject to a daily purchase limit of 662,120 common shares, representing 25 per cent of the average daily trading volume of 2,648,482 common shares on the TSX calculated for the six-month period ended July 31, 2023; however, Tourmaline may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Any common shares that are purchased under the NCIB will be cancelled upon their purchase by Tourmaline.
• Under its most recent normal course issuer bid, Tourmaline obtained approval to purchase up to 16,800,668 of its common shares, of which Tourmaline purchased no common shares.
• Tourmaline believes that at times, the prevailing share price does not reflect the underlying value of the common shares and the repurchase of its common shares for cancellation represents an attractive opportunity to enhance Tourmaline's per share metrics and thereby increase the underlying value of its common shares to its shareholders. Tourmaline will use the NCIB as another tool to enhance total long-term shareholder returns and it will be used in conjunction with management's disciplined free cash flow capital allocation strategy.

Conference Call Tomorrow at 9:00 a.m. MT (11:00 a.m. ET)

Tourmaline will host a conference call tomorrow, August 3, 2023 starting at 9:00 a.m. MT (11:00 a.m. ET).

To participate without operator assistance, you may register and enter your phone number on-line to receive an instant automated call back.

To participate using an operator, please dial 1-888-664-6383 (toll-free in North America), or 1-416-764-8650 (international dial-in), a few minutes prior to the conference call.

Conference ID is 33950131.

REPLAY DETAILS

If you are unable to dial into the live conference call on August 3 rd, a replay will be available by dialing 1-888-390-0541 (international 1-416-764-8677), referencing Encore Replay Code 950131. The recording will expire on August 17, 2023.

MANAGEMENT'S DISCUSSION AND ANALYSIS AND CONSOLIDATED FINANCIAL STATEMENTS

To view Tourmaline's Management's Discussion and Analysis and Interim Condensed Consolidated Financial Statements for the periods ended June 30, 2023 and 2022, please refer to SEDAR+ or Tourmaline's website.

ABOUT TOURMALINE OIL CORP.

Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest-emission and lowest-cost natural gas in North America. We are an investment grade exploration and production company providing strong and predictable operating and financial performance through the development of our three core areas in the Western Canadian Sedimentary Basin. With our existing large reserve base, decades-long drilling inventory, relentless focus on execution and cost management, and industry-leading environmental performance, we are excited to provide shareholders an excellent return on capital, and an attractive source of income through our base dividend and surplus free cash flow distribution strategies.

We seek Safe Harbor.