Tou spinoff

Hi there,

I am unsure bout a future spinoff, but the company already spun some off some its assets into a royalty and energy infrastructure. Tourmaline owns a 78% interest in the privately held Topaz Energy Corp. The move was announced in October of last year, and closed in November.

Tourmaline immediately saw the benefits to the Spinoff as its share price jumped by double-digits on the news. I suppose another catalyst could be when Topaz goes public, which is expected to happen in the second half. Granted, this could be delayed given the industry uncertainty. In terms of valuation, analysts compare Topaz to Prairie Sky Royalty (TSX:PSK) and Keyera (TSX:KEY). Once Topaz goes public and if it trades a valuation similar to those, than Tourmaline could benefit as it is would unlock some of this value.

Mat