Tourmaline (TOU) hikes dividend. Will these 2 oil stocks follow suit?

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Tourmaline (TOU) hikes dividend. Will these 2 oil stocks follow suit?

Tourmaline (TOU) hikes dividend. Will these 2 oil stocks follow suit?
Image source: © 2022 Kalkine Media®   

Highlights

  • The Calgary, Alberta-based oil and gas producer increased its quarterly dividend base by 11 per cent, underpinned by its robust financial performance and outlook.
  • Tourmaline Oil Corp will now pay a quarterly dividend of C$ 0.20 per share, up from that of C$ 0.18 per share, starting from the first quarter of the fiscal year 2022, said an announcement on Monday, January 17. 
  • An energy scrip mentioned here soared by about 142 per cent in the past one year.

Tourmaline Oil Corp, with a market cap of C$ 15 billion, is one of the largest natural gas and crude oil company with exploration and production assets in the Western Canadian Sedimentary Basin.

The Calgary, Alberta-based oil and gas producer increased its quarterly dividend base by 11 per cent, underpinned by its robust financial performance and outlook.

Tourmaline Oil Corp will now pay a quarterly dividend of C$ 0.20 per share, up from that of C$ 0.18 per share, starting first quarter of fiscal year 2022, said an announcement on Monday, January 17. 

The energy company also declared a special cash dividend of C$ 1.25 per share, scheduled for payment on February 1 (ex-dividend on January 25).

Tourmaline (TSX: TOU) financial and stock performance

Tourmaline recorded a cash flow of C$ 761.3 million in the third quarter of FY 2021, as compared to C$ 279.9 million a year ago. 

The energy company posted earnings of C$ 361.1 million and a free cash flow of 369.3 million in the latest quarter.

Stocks of Tourmaline closed at C$ 47.23 apiece on Tuesday, January 18, after clocking a day high of C$ 49.

TOU scrip rocketed by over 131 per cent in the last 12 months.

Also read: 5 Canadian growth stocks to hold for the long haul

Let us discuss two other energy stocks that could raise their dividends like Tourmaline.

1.    Cenovus Energy Inc (TSX: CVE)

Cenovus Energy more than doubled its net earnings to C$ 551 million in the third quarter of fiscal 2021, up from C$ 224 million in Q2 FY2021.

The C$ 37-billion market cap energy firm reported a free cash flow of C$ 1.69 billion in the latest quarter, which was substantially up from C$ 259 million in the third quarter a year ago.

Cenovus scrip closed at C$ 18.64 apiece on Tuesday after reaching a day high of C$ 19.23. The energy scrip soared by about 142 per cent in the past one year.

 Image source: © 2022 Kalkine Media®      

2.    Canadian Natural Resources Limited (TSX: CNQ)

Canadian Natural Resources recorded net earnings of C$ 2.20 billion and cash flow from operating activities of C$ 4.29 billion in Q3 FY2021.

On Tuesday, the oil and gas stock closed at C$ 66.08 apiece after achieving a day high of C$ 67.77. This energy stock swelled by almost 111 per cent year-over-year (YoY).

Bottomline

Some market experts believe that Tourmaline Oil Corp’s move to increase its dividend and return more value to its shareholders might inspire its peers like Cenovus and Canadian Natural Resources to hike their dividend as well.

Also read: Enbridge (TSX:ENB) & Vermilion (TSX:VET): 2 oil & gas stocks to watch

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