Tourmaline cuts 2026 capex by $350M after record production, major asset sale
According to BOE Report, Tourmaline Oil Corp achieved record fourth quarter production of 659,204 barrels of oil equivalent per day while adding 829 million BOE in proved and probable reserves. The Calgary-based producer also completed a $765 million asset sale and cut 2026 exploration and production capital expenditures by $350 million to optimize free cash flow.
The company hit over 685,000 boepd in January 2026 before completing the sale of its Peace River High assets in February. Tourmaline also terminated discretionary deep cut gas plant deliveries in Alberta’s Deep Basin to improve operating margins.
What It Means for Subcontractors
- Major capex reduction could mean fewer drilling, completion, and construction opportunities with one of Canada’s largest producers in 2026
- Asset sale and operational changes may shift work from mature fields to newer, lower-cost production areas across Tourmaline’s portfolio
- Strong production growth and reserve additions suggest continued long-term activity, though at reduced near-term spending levels
