Tourmaline Oil Corp.

Good morning, ladies and gentlemen, and welcome to the Termaline Q1 2026 results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star and then the number zero for the operator. This call is being recorded on Thursday, May 7, 2026. I would now like to turn the conference over to Scott Kirker, Chief Legal Officer. Please go ahead.

Thank you, Operator, and welcome, everyone, to our discussion of Termaline's financial and operating results as of March 31, 2026, and with the three months ended March 31, 26, and 25. My name is Scott Kirker, and I'm the Chief Legal Officer here at Termaline Oil Corp. Before we get started, I refer you to the advisories on forward-looking statements contained in the news release, as well as the advisories contained in the Termaline Annual Information Forum and our MD&A available on CDAR and on our website. I also draw your attention to the material factors and assumptions in those advisories. I'm here with Mike Rose, Tourmaline's President and Chief Executive Officer, Brian Robinson, our Chief Financial Officer, and Jamie Hurd, Tourmaline's Vice President of Capital Markets. We'll start with Mike speaking to some of the highlights of the last quarter and the full 2025 year. After his remarks, we will be open for questions. Mike, go ahead.

Thanks, Scott. Thanks, everybody, for dialing in, and we're pleased to review our Q1 26 results and provide an update on our broad range of activities. The company achieved record production in the first quarter, generated very strong earnings, and our cash flow and free cash flow forecasts for 26 and 27 are steadily moving up. Some select highlights, continued new outperformance in bulk gas complexes, leading to production at the midpoint of guidance despite significant Q1 capital deferrals. The first two major facility projects in the Northeast BC infrastructure build-out, those being Aitken and Groundbridge, remain on schedule. Due to strong global liquids prices and our access to Pacific propane exports, our 26 NGL realizations are anticipated to increase by approximately 30% over 2025. Q1-26 cash flow was $862 million, and that generated $202 million of free cash flow for the quarter. Our Q1-26 net earnings were a very strong $658 million. We have steadily improving 26 and 27 full-year free cash flow outlooks, and net debt at March 31-26 was $1.5 billion. which is below the long-term debt target of $1.75 billion and is approximately 0.4 times net debt's cash flow. Looking briefly at production, first quarter 26 average production was 666,089 DOEs per day within the original guidance range. Unchanged 26 average production of 620,000 to 640,000 VOEs per day is anticipated. We intend to maximize the use of our new Gimsdale Alberta storage capacity as well as existing long-term Donning California storage facility positions along with potential in-basin production curtailment during periods of low prices this spring and summer. Fossil scheduled the vast majority of our 26 facility maintenance into Q2 during low gas prices, which keeps gas volumes offline. Today, that equates to around $70 million per day, and some of that is higher-cost third-party gas, and that's all largely factored into 26 guidance and Q2 guidance. Briefly on financial results, as mentioned, we generated $202 million of free cash flow in the quarter, really despite extremely weak Western North American gas prices This winter.