If you've followed our answers over the past while, our message remains consistent - we are not fans of the oil & gas industry right now. There are too many unknowns and we expect volatility to remain.
On the bright side, since Tourmaline's production is an 80:20 gas to oil split. While oil has cratered, natural gas has rebounded from record lows achieved last fall. As Canada's largest natural gas producer, this enabled Tourmaline to outperform year to date. In fact, it is one of the few industry stocks that has kept the dividend steady and it intends to do so through the balance of 2020 as it expects to generate FCF of $173 million.
Even at that however, expect volatility. The company's stock price is down by 30% over the past year as natural gas prices are still quite low.
At this point, any stock tied to the price of oil and gas commodities pose additional risk and are likely to be considerably volatile.
Mat