Canada’s largest natural gas producer,
Tourmaline Oil Corp.
, cut its spending plans for the year, citing “unusually volatile times,” and said it could cut more if
gas prices
remain weak.
The company trimmed $400 million from its 2026 capital budget — which now sits at $2.55 billion — after an unseasonably warm winter and outages at LNG Canada dampened prices for natural gas in Western Canada.
“(Tourmaline) believes that during these unusually volatile times, the optimal business approach is to steadily reduce debt and continuously improve the overall cost structure,” the company said in a statement Wednesday alongside the release of its fourth-quarter results.
“It is prudent to defer certain gas-focused expenditures until a sustained, stronger local price environment materializes.”
The Calgary-based producer also said it will use proceeds from the nearly $800-million sale of assets in the Peace River region
to oilsands major Canadian Natural Resources Ltd.
to pay down debt and help fund the build-out of its large gas complex in the Northeast B.C. Montney play.
Tourmaline said it expects average production in 2026 to range from 620,000 to 640,000 barrels of oil equivalent per day, down from its earlier forecast of 690,000 to 710,000.
The natural gas producer reported a fourth-quarter net loss of $655 million, compared with net earnings of $407 million a year earlier — largely reflecting accounting adjustments.
However, Tourmaline reported $890 million in cash flow in the quarter, up from $850 million, showing that the business continued to generate strong cash from operations.
More to come…
Canada's gas giant trims spending, citing 'unusually volatile times'
2026-03-05 17:04:50
