TOURMALINE ANNOUNCES THIRD QUARTER RESULTS WITH STRONG EARNINGS AND EP PERFORMANCE AND A >70% INCREASE TO THE PREVIOUS 2027 FREE CASH FLOW ESTIMATE, NOW $1.8 BILLION

CALGARY, AB, Nov. 4, 2026 /CNW/ -- Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline" or the "Company") is pleased to release financial and operating results for the third quarter of 2026.

HIGHLIGHTS

• Q3 2026 average production was 593,730 boepd and is expected to be significantly higher in Q4 as commodity prices improve. The Company has commenced this production ramp up, with current production averaging 630,000 – 635,000 boepd, which will grow towards an anticipated 2026 exit volume of 670,000 boepd or greater, including storage withdrawals.
• The Aitken c-38-C deep cut gas processing facility expansion has been completed on schedule and start-up operations for the new facility are underway. This is the first major new facility expansion in the multi-year NEBC infrastructure build out project to be completed.
• The Company is planning $2.6 billion of 2027 EP capital spending which, at current strip pricing⁽¹⁾, generates $1.8 billion of free cash flow⁽²⁾⁽³⁾ ("FCF") in 2027, up 71% from 2027 FCF expectations in July of this year. The improved 2027 FCF outlook is anticipated to allow the Company to pursue a mix of base dividend increases, continued share repurchases, and potential special dividends.  
• Q3 2026 net earnings were $641.5 million ($1.64 per diluted share).
• In the continuing effort to crystallize unrealized shareholder value, Tourmaline has formed Emerald Energy Technologies Corp. ("Emerald") with plans to surface significant value from the Company's multi-year Environmental Performance Improvement (EPI) investments made over the past several years.

PRODUCTION UPDATE

• Q3 2026 average production was 593,730 boepd, slightly below the guidance range of 595,000 – 605,000 boepd due to deferrals and storage injections undertaken to allow more production to reach stronger pricing in Q4 2026 and Q1 2027. In Q3 2026, storage injections reduced sales production volumes by an average of 4,564 boepd, which was more than originally estimated. Tourmaline plans to withdraw approximately 15,000 boepd from storage this winter during periods of higher anticipated prices.
• An extended unplanned outage at a third-party gas processing facility in NEBC in October is expected to reduce Q4 volumes by an average of approximately 3,000 boepd.  Tourmaline's NEBC infrastructure project will systematically reduce volumes processed at third-party facilities. 
• The Company increased frac activity in August/September but elected not to bring the majority of these wells on-production until the fourth quarter.  A total of approximately 80 new wells are expected to be brought on-production in Q4, with an estimated 44 DUCs carried over into 2027. 
• Current production is averaging 630,000 – 635,000 boepd as the Company commenced the Q4 ramp up. Fourth quarter average production is anticipated to be 635,000 – 645,000 boepd, with 2026 exit production of 670,000 boepd or greater anticipated, including storage withdrawals.

FINANCIAL RESULTS AND CAPITAL BUDGET

• Q3 2026 cash flow⁽⁴⁾ ("CF") was $788.3 million ($2.02 per fully diluted share), generating $60.2 million of FCF in the quarter.
• Net debt⁽⁵⁾ as of September 30, 2026 was $1.54 billion, below the Company's long-term net debt target of $1.75 billion, and approximately 0.3x net debt to 2027 forecasted cash flow.
• Third quarter operating costs were $4.48/boe, down 7% from Q3 2025 and down 2% from Q2 2026.  Full year 2026 operating costs of $4.50 to $4.60/boe are expected, down 7% to 9% from full year 2025. Tourmaline maintains its aggregate operating and transportation cost reduction target of $1.50/boe by 2031 relative to 1H 2025 levels.
• The full year 2026 EP capital budget remains at $2.55 billion following the $350 million reduction announced on March 4, 2026.  The Company will continue to monitor spending to optimize FCF in Q4 2026 and in 2027.
• The FCF benefit from the Company's exposure to JKM and TTF pricing associated with its LNG export-related contracts is expected to continue through the balance of 2026 and significantly improve FCF in 2027. 
• The Company is planning $2.6 billion of 2027 EP capital spending which, at current strip pricing, is expected to generate $1.8 billion of 2027 FCF, up 71% from 2027 FCF expectations as of July 2026.  At Tourmaline's current market capitalization, this represents an approximately 7% anticipated FCF yield⁽⁶⁾ in addition to 2027 production growth, which is forecasted between 4% and 6% over 2026 production levels.
• As previously announced, Tourmaline has scheduled a one-year growth spending pause between the two phases of the NEBC Montney infrastructure buildout and development project.  This pause is intended to allow the Company and shareholders to realize the full operational benefits and FCF growth from Phase 1 in 2H 2027/2028 prior to embarking on Phase 2.  The pause also allows the Company to assess global natural gas supply, demand, and price outlooks in order to determine the optimal timing for bringing on the incremental volumes resulting from Phase 2 of the buildout. At current strip pricing, 2028 FCF is anticipated to be $1.75 billion, representing an approximately 7% anticipated FCF yield along with forecasted 2028 production growth of 4% over 2027 production levels as Tourmaline fills its Phase 1 NEBC infrastructure capacity.

MARKETING UPDATE

• Tourmaline's average realized natural gas price in Q3 2026 was CAD $3.41/mcf, significantly (CAD $1.82/mcf) above the AECO 5A benchmark price of CAD $1.59/mcf over the same period, as the Company continues to benefit from its diversified marketing portfolio and strategic hedging program.
• Tourmaline has an average of 887 mmcfpd of natural gas hedged for the remainder of 2026 at a weighted average fixed price of CAD $5.07/mcf. Tourmaline also has an average of 502 mmcfpd of natural gas hedged in 2027 at a weighted average fixed price of CAD $6.28/mcf. In 2026 and 2027, this includes 90 mmcfpd hedged in international markets at the respective weighted average fixed prices of CAD $15.54/mcf and $15.38/mcf.
• The Company also has 25 mmcfpd of international collars with an average floor of CAD $12.49/mcf and ceiling of CAD $23.49/mcf for the remainder of 2026, and 20 mmcfpd with an average floor of CAD $15.13/mcf and ceiling of CAD $28.04/mcf for 2027.  
• After accounting for the above, Tourmaline has 105 mmcfpd floating with premium TTF and JKM markets for the remainder of 2026, and 137 mmcfpd for 2027. JKM is currently⁽⁷⁾ trading at CAD $46.50/mcf for balance 2026 and CAD $36.87/mcf for 2027. TTF is trading at CAD $46.63/mcf for balance 2026 and CAD $37.21/mcf for 2027.
• In Western U.S. markets, Tourmaline has 173 mmcfpd hedged at a weighted average price of CAD $6.19/mcf for the remainder of 2026, and 176 mmcfpd hedged at a weighted average price of CAD $5.54/mcf in 2027.
• Tourmaline has amended its previously announced long-term agreement with Centrica Energy to increase volume deliveries thereunder by 30,000 mmbtu per day of natural gas for a seven-year term commencing April 2031, with pricing indexed to TTF less associated deductions. With this incremental international market exposure, the Company grows its average daily volume of gas exposed to international pricing (TTF and JKM) to an average of 362,500 mmbtu per day by April 2031.
• Tourmaline has approximately 50% of its propane volume exposed to the FEI (Argus Far East Index) market in 2026 and 2027. FEI is currently⁽⁸⁾ trading at USD $980/MT (approximately USD $79/bbl) for balance 2026 and USD $725/MT (approximately USD $58/bbl) for 2027.

SHAREHOLDER RETURNS

• Tourmaline will continue to pursue the full range of shareholder returns that complement the growth of the business provided by the ongoing NEBC Montney infrastructure buildout and development project. 
• As announced on September 22, 2026, the Company has increased the quarterly base dividend by 5% from $0.50/share to $0.525/share ($2.10/share on an annualized basis) effective in Q4 2026. The Q4 quarterly base dividend is expected to be declared in early December and payable on December 31, 2026 to shareholders of record at the close of business on December 15, 2026.  This is the 18^th base dividend increase since inception of the Company's dividend program in 2018. 
• The Company will utilize the majority of the proceeds from the Topaz Energy secondary share offering completed on October 8, 2026 to repurchase Tourmaline shares, which the Company views as undervalued.  The Company purchased 1.3 million Tourmaline shares between September 23 and October 9, 2026 at an average price of $61.88/share.  Additional share repurchases will be made in the fourth quarter. 
• The improved 2027 FCF outlook ($1.8 billion at current strip pricing) is expected to allow the Company to pursue a mix of base dividend increases, continued share repurchases, and potential special dividends.

EMERALD

• In the continuing effort to crystallize unrealized shareholder value, Tourmaline has formed Emerald, currently a wholly-owned subsidiary, which is designed to surface value from the Company's multi-year Environmental Performance Improvement (EPI) investments made over the past several years.
• Emerald is a clean technology business which will have three initial principal business segments: power generation and transmission, compressed natural gas (CNG)/low emission fuels, and innovative resource technologies including CCUS and water management.
• Emerald intends to pursue private equity financing, which will partially fund Emerald's purchase of Tourmaline's water recycling facilities, the Company's interest in the existing CNG fueling network, and power assets currently in the Tourmaline portfolio.
• In addition, Tourmaline, Emerald and Stream Data Centers are working exclusively on the Malachite One powered land solution and data center campus.  Extensive public consultation and engagement continues, and data center site preparation is anticipated to commence this quarter.
• Emerald will be a unique offering in the space and is expected to generate significant revenue from the assets proposed to be acquired from Tourmaline and to have sufficient size to pursue select consolidation opportunities in all of its business segments.

EP UPDATE

• Tourmaline drilled a total of 67 wells (gross) and completed 69 wells (gross) during the third quarter.  Frac activity was ramped up in Q3 to provide increasing production volumes in Q4.
• Strong new well performance has continued in 2026.  NEBC Montney well performance is up 17% in total wellhead production (mboe) and 22% in raw gas production in 2026 over the previous five-year average (based on 47 wells that have reached IP90).  The Alberta Deep Basin is up 7% in total wellhead production (mboe) in 2026 over the previous five-year average (based on 48 wells that have reached IP90).
• The Aitken c-38-C deep cut gas processing facility expansion has been completed on schedule and plant expansion start-up operations are underway. This is the first major new facility project in the multi-year NEBC infrastructure build-out to be completed. The new Groundbirch-Monias deep cut plant remains on schedule for a Q4 2027 start-up.

SUSTAINABILITY REPORT

• Tourmaline has released its 2025 Sustainability Report, Realizing Canada's Unprecedented Natural Gas Growth Opportunity, available at www.tourmalineoil.com.

DIVIDEND

• Tourmaline's Board of Directors intends to declare a quarterly base dividend of $0.525 per share in December, which will be payable on December 31, 2026 to shareholders of record at the close of business on December 15, 2026. The quarterly base dividend will be designated as an eligible dividend for Canadian income tax purposes.

______________________________
(1)	As per strip pricing as of October 15, 2026.
(2)	This news release contains certain specified financial measures consisting of non-GAAP financial measures, non-GAAP financial ratios, capital management measures and supplementary financial measures. See "Non-GAAP and Other Financial Measures" in this news release for information regarding the following specified financial measures: "cash flow", "capital expenditures", "EP expenditures", "free cash flow", "operating netback", "operating netback per-boe", "cash flow per diluted share", "free cash flow per diluted share", "adjusted working capital", "net debt" and "FCF yield". Since these specified financial measures do not have standardized meanings under International Financial Reporting Standards ("GAAP"), securities regulations require that, among other things, they be identified, defined, qualified and, where required, reconciled with their nearest GAAP measure and compared to the prior period. See "Non-GAAP and Other Financial Measures" in this news release and in the Company's most recently filed Management's Discussion and Analysis (the "Q3 2026 MD&A"), which information is incorporated by reference into this news release, for further information on the composition of and, where required, reconciliation of these measures.
(3)	"Free cash flow" is a non-GAAP financial measure defined as cash flow less capital expenditures, excluding acquisitions and dispositions.  Free cash flow is prior to dividend payments.  See "Non-GAAP and Other Financial Measures" in this news release.
(4)	"Cash flow" is a non-GAAP financial measure defined as cash flow from operating activities adjusted for the change in non-cash working capital (deficit) and current taxes.  See "Non-GAAP and Other Financial Measures" in this news release and in the Q3 2026 MD&A.
(5)	"Net debt" is a capital management measure. See "Non-GAAP and Other Financial Measures" in this news release and in the Q3 2026 MD&A.
(6)	"FCF yield" is a supplemental financial measure calculated by dividing FCF by the current market capitalization of approximately $26 billion.  See "Non-GAAP and Other Financial Measures" in this news release.
(7)	Strip prices as of October 27, 2026.
(8)	Strip prices as of October 27, 2026.

CORPORATE SUMMARY – THIRD QUARTER 2026

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026	2025	Change		2026	2025	Change
OPERATIONS
Production
Natural gas (mcf/d)	2,886,360	2,925,485	(1) %		2,968,198	2,915,194	2 %
Crude oil, condensate and NGL (bbl/d)	112,670	147,165	(23) %		123,042	145,245	(15) %
Oil equivalent (boe/d)	593,730	634,746	(6) %		617,742	631,111	(2) %
Product prices^(1)
Natural gas ($/mcf)	$       3.41	$       3.07	11 %		$       3.38	$       3.57	(5) %
Crude oil, condensate and NGL ($/bbl)	$     59.39	$     48.22	23 %		$     58.66	$     51.41	14 %
Operating expenses ($/boe)	$       4.48	$       4.80	(7) %		$       4.61	$       5.02	(8) %
Transportation costs ($/boe)	$       4.97	$       4.99	– %		$       5.19	$       5.17	– %
Operating netback ($/boe)^(2)	$     15.67	$     13.67	15 %		$     15.38	$     15.91	(3) %
Cash general and administrative expenses ($/boe)^(3)	$       0.85	$       0.81	5 %		$       0.86	$       0.81	6 %
FINANCIAL  ($000, except share and per share)
Commodity sales from production	1,218,475	924,974	32 %		4,014,052	3,517,007	14 %
Total revenue from commodity sales and realized gains	1,521,495	1,478,997	3 %		4,708,422	4,876,639	(3) %
Royalties	148,999	109,271	36 %		462,395	378,758	22 %
Cash flow	788,271	719,576	10 %		2,436,515	2,505,453	(3) %
Cash flow per share (diluted)	$       2.02	$       1.85	9 %		$       6.25	$       6.56	(5) %
Net earnings	641,508	190,405	237 %		1,483,494	917,674	62 %
Net earnings per share (diluted)	$       1.64	$       0.49	235 %		$       3.81	$       2.40	59 %
Capital expenditures (net of dispositions)^(2)	727,782	774,037	(6) %		1,191,306	2,104,294	(43) %
Weighted average shares outstanding (diluted)	390,009,133	389,037,495	– %		389,788,192	382,176,389	2 %
Net debt					(1,539,696)	(2,261,767)	(32) %

Notes:
(1)	Product prices include realized gains and losses on risk management activities and financial instrument contracts.
(2)	See "Non-GAAP and Other Financial Measures" in this news release and in the Q3 2026 MD&A.
(3)	Excluding interest and financing charges.

Conference Call Tomorrow at 9:00 a.m. MT (10:00 a.m. ET)

Tourmaline will host a conference call tomorrow, November 5, 2026 starting at 9:00 a.m. MT (10:00 a.m. ET).

To participate without operator assistance, you may register and enter your phone number at  https://emportal.ink/4dfAjXJ to receive an instant automated call back.

To participate using an operator, please dial 1-888-510-2154 (toll-free in North America), or 1-437-900-0527 (international dial-in), a few minutes prior to the conference call.

REPLAY DETAILS

If you are unable to dial into the live conference call on November 5, a replay will be available by dialing 1-888-660-6345 (international 1-289-819-1450), referencing Replay Code 45986. The recording will expire on November 19, 2026.

Reader Advisories

CURRENCY

All amounts in this news release are stated in Canadian dollars unless otherwise specified.

FORWARD-LOOKING INFORMATION

This news release contains forward-looking information and statements (collectively, "forward-looking information") within the meaning of applicable securities laws. The use of any of the words "forecast", "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "on track", "may", "will", "project", "should", "believe", "plans", "intends", "target", "scheduled", "potential", "pursue" and similar expressions are intended to identify forward-looking information. More particularly and without limitation, this news release contains forward-looking information concerning Tourmaline's plans and other aspects of its anticipated future operations, management focus, objectives, strategies, financial, operating and production results and business opportunities, including the following: anticipated petroleum and natural gas production and production growth for various periods including estimated average production levels for the fourth quarter of 2026, full-year 2026 and exit 2026; estimated average production growth for 2027 and 2028; the anticipated timing and pace of the Q4 2026 production ramp-up, including the number of wells expected to be brought on-production in the fourth quarter of 2026, the number of DUCs expected to be carried over into 2027 and the expected effect on Q4 2026 volumes of the extended outage at a third-party gas processing facility in NEBC; the anticipated benefits, timing, volumes and pricing associated with the Company's long-term natural gas sales agreements with Centrica Energy, including the expected increase in the Company's average daily volumes exposed to international pricing (TTF/JKM) and the expected pricing under the agreement; the anticipated start-up and ramp-up of the Aitken c-38-C deep cut gas processing facility expansion following its completion, and the anticipated Q4 2027 start-up date of the new Groundbirch-Monias deep cut plant; the scheduled one year pause in growth capital spending between Phase 1 and Phase 2 of the NEBC Montney infrastructure buildout; the Company's long-term net debt target and the expected ratio of net debt to forecast 2027 cash flow; the anticipated 2026 full year EP capital program; anticipated commodity price improvement; anticipated 2026, 2027 and 2028 FCF;  anticipated international LNG pricing; anticipated injections and withdrawals of natural gas using the Company's storage capacity and the timing and volume thereof; production levels, CF, FCF and other information included in the Company's EP Plan; average volumes of natural gas exposed to international pricing (JKM/TTF) for various periods, including growth to an average of 362,500 mmbtu per day by April 2031; the timing of the FCF benefit that the Company expects to realize from exposure to JKM and TTF pricing; expected full-year 2026 operating costs of $4.50 to $4.60 per boe and expected total operating and transportation cost reductions that the Company expects to realize by 2031; anticipated 2027 and 2028 EP spending and estimated FCF, including the anticipated 2027 EP capital budget of $2.6 billion, the anticipated FCF yield in 2027 and 2028 at the Company's current market capitalization, forecast production growth of 4% to 6% in 2027 over 2026 production levels and approximately 4% in 2028 over 2027 production levels; the expectation that the Company and shareholders will realize the full operational benefits and FCF growth from Phase 1 of the NEBC Montney infrastructure buildout in 2H 2027/2028; expected natural gas volumes and condensate and NGL growth volumes resulting from the NEBC Montney infrastructure and development project; the Company's intention to continue to monitor spending to optimize FCF in the fourth quarter of 2026 and in 2027; the expectation that costs will continue to be reduced as NEBC infrastructure comes on production and higher production through the winter quarters blends down fixed costs; anticipated structural incremental annual cash flow resulting from the NEBC Montney infrastructure buildout; the Company's ability to execute the NEBC Montney infrastructure buildout on the original schedule should natural gas prices materially improve; potential future drilling and completion-related capital deferrals; the expectation that the Board of Directors will declare a quarterly base dividend in early December of $0.525 per share, payable on December 31, 2026 to shareholders of record on December 15, 2026; the Company's intention to use the majority of the proceeds of the Topaz Energy secondary share offering to repurchase Tourmaline shares and to continue share repurchases in the fourth quarter of 2026; the timing of announcements relating to potential allocations for anticipated excess FCF, including potential increased shareholder returns in the form of base dividend increases, continued share repurchases and potential special dividends and the timing thereof; the timing and scale of future growth and developments projects, including the NEBC infrastructure build out; the Company's plans for Emerald, including: the intended private placement equity financing by Emerald and the timing, size and terms thereof; the anticipated sale or transfer to Emerald of water recycling facilities, the Company's existing CNG fueling network and power assets and the timing thereof; the expected business segments, size, revenue generation from its assets and consolidation opportunities of Emerald; the Malachite One powered land solution and data center campus, including the anticipated arrangements with the prospective tenant, the targeted late 2027 in-service date, the anticipated timing of site preparation and the outcome of public consultation and engagement; and the anticipated value to be surfaced for shareholders from the Company's Environmental Performance Improvement (EPI) investments; projected operating and drilling costs and drilling times; anticipated future commodity prices; anticipated increasing worldwide natural gas demand across key markets; as well as Tourmaline's future drilling locations, prospects and plans, business strategy, future development and growth opportunities, prospects and asset base. The forward-looking information is based on certain key expectations and assumptions made by Tourmaline, including expectations and assumptions concerning the following: prevailing and future commodity prices and currency exchange and interest rates; applicable royalty rates and tax laws; future well production rates and reserve volumes; operating costs, the timing of receipt of regulatory approvals; the performance of existing and future wells; the success obtained in drilling new wells; anticipated timing and results of capital expenditures; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the successful completion of acquisitions and dispositions and the benefits to be derived therefrom; the state of the economy and the exploration and production business; the availability and cost of financing, labour and services; the ability of Emerald to complete its planned private placement financing and the related asset transfers on the anticipated terms and timing; the receipt of required regulatory and other approvals, the entry into definitive agreements with the prospective tenant and the timing of construction and in-service for the Malachite One project; the availability of third-party processing capacity and the timing of resumption of service at third-party facilities; the continued ability to repurchase shares at prices the Company considers attractive and compliance with applicable limits on share repurchases; ability to maintain its investment grade credit rating; and ability to market crude oil, natural gas and NGL successfully. Without limitation of the foregoing, future dividend payments, if any, and the level thereof is uncertain, as the Company's dividend policy and the funds available for the payment of dividends from time to time is dependent upon, among other things, FCF, financial requirements  for the Company's operations and the execution of its growth strategy, fluctuations in working capital and the timing and amount of capital expenditures, debt service requirements and other factors  beyond the Company's control. Further, the ability of Tourmaline to pay dividends is subject to applicable laws (including the satisfaction of the solvency test contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness, including its credit facility. Similarly, the timing and amount of any share repurchases is uncertain and depends upon, among other things, the market price of the Company's shares, FCF, alternative uses of capital, the Company's financial requirements and applicable laws and exchange requirements. Certain of the forward-looking information in this news release, including estimated 2027 and 2028 FCF, the anticipated FCF yield in 2027 and 2028 and the anticipated ratio of net debt to forecast 2027 cash flow, may constitute a "financial outlook" or "future-oriented financial information" within the meaning of applicable securities laws. See "Financial Outlooks".

Statements relating to "reserves" are also deemed to be forward looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.

References in this news release to the Company's view that its shares are undervalued, and to the anticipated FCF yield at the Company's current market capitalization, reflect the current opinion of management, are based on the estimates, assumptions and financial outlook described in this news release (including estimated 2027 and 2028 FCF and FCF yield), and are not a forecast, prediction or assurance of the future trading price of the Company's shares. The market price of the Company's shares is affected by many factors beyond the Company's control, including those described below, and may be materially higher or lower than any price implied by such views.

Although Tourmaline believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Tourmaline can give no assurances that it will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; supply chain disruptions; the uncertainty of estimates and projections relating to reserves, production, revenues, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations (including the risk that anticipated commodity price improvement in the fourth quarter of 2026 and the first quarter of 2027 is not realized, which could affect the value of natural gas held in storage and of deferred production); interest rate fluctuations; changes in rates of inflation; marketing and transportation; risks relating to long-term natural gas sales agreements, including counterparty risk, the timing and availability of third-party LNG export and transportation infrastructure, and fluctuations in TTF and JKM pricing; reliance on third-party infrastructure, including unplanned or extended outages at third-party gas processing facilities; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions; risks relating to Emerald, including the failure to complete the planned private placement financing, asset transfers or related transactions on the anticipated terms or timing or at all; the failure to realize the anticipated benefits of Emerald or to surface the anticipated value from the Company's EPI investments; the risk that definitive agreements with the prospective tenant of the Malachite One data center campus are not entered into or are terminated; delays, cost overruns or other difficulties in construction and in-service, including availability of power and equipment; the outcome of public consultation and regulatory approvals; and changes in demand for data center, power generation, CNG / low emission fuels and related services and technologies; hazards such as fire, explosion, blowouts, cratering, and spills, any of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury; stock market volatility; the risk that the Company's shares do not trade at prices consistent with management's assessment of their value, and the timing, volume and price of any share repurchases; ability to access sufficient capital from internal and external sources; uncertainties associated with counterparty credit risk; failure to obtain required regulatory and other approvals including drilling permits and the impact of not receiving such approvals on the Company's long-term planning; climate change risks; severe weather (including wildfires, floods and drought); risks of wars or other hostilities or geopolitical events, civil insurrection and pandemics; risks relating to Indigenous land claims and duty to consult; data breaches and cyber attacks; risks relating to the use of artificial intelligence; changes in legislation, including but not limited to tax laws, royalties and environmental regulations (including greenhouse gas emission reduction requirements and other decarbonization or social policies and including uncertainty with respect to the interpretation and impact of omnibus Bill C-59 and the related amendments to the Competition Act (Canada)); trade policy, barriers, disputes or wars (including new tariffs or changes to existing international trade arrangements); and general economic and business conditions and markets. Readers are cautioned that the foregoing list of factors is not exhaustive.

Additional information on these and other factors that could affect Tourmaline, or its operations or financial results, are included in the Company's most recently filed  Management's Discussion and Analysis (See "Forward-Looking Statements" therein), Annual Information Form (See "Risk Factors" and "Forward-Looking Statements" therein) and other reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) or Tourmaline's website (www.tourmalineoil.com). 

The forward-looking information contained in this news release is made as of the date hereof and Tourmaline undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless expressly required by applicable securities laws.

BOE EQUIVALENCY

In this news release, production and reserves information may be presented on a "barrel of oil equivalent" or "BOE" basis. BOEs may be misleading, particularly if used in isolation.  A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  In addition, as the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

FINANCIAL OUTLOOKS

Also included in this news release are estimates of Tourmaline's 2027 and 2028 FCF and FCF yield, which are based on, among other things, the various assumptions as to production levels, receipt of drilling permits, capital expenditures and other assumptions disclosed in this news release.  With respect to 2027 FCF, Tourmaline's estimated average production assumption of 655,000 boepd, commodity price assumptions for natural gas ($3.21/mmbtu NYMEX US, $2.19/mcf AECO, $3.38/mmbtu PG&E Citygate US, $22.31/mcf JKM US), crude oil ($84.08/bbl WTI US) and an exchange rate assumption (USD/CAD) of $0.71.  With respect to 2028 FCF, Tourmaline's estimated average production assumption of 680,000 boepd, commodity price assumptions for natural gas ($3.69/mmbtu NYMEX US, $2.56/mcf AECO, $4.00/mmbtu PG&E Citygate US, $14.47/mcf JKM US), crude oil ($73.69/bbl WTI US) and an exchange rate assumption (USD/CAD) of $0.72. In addition, such estimates are provided for illustration only and are based on budgets and forecasts as of the date hereof that are subject to change and a variety of contingencies including prior years' results. To the extent such estimates constitute a financial outlook, they are included to provide readers with an understanding of Tourmaline's anticipated FCF and FCF yield based on the capital expenditure, production, pricing, exchange rate and other assumptions described herein and readers are cautioned that the information may not be appropriate for other purposes.

NON-GAAP AND OTHER FINANCIAL MEASURES

This news release contains the terms "cash flow", "capital expenditures", "EP expenditures", "free cash flow", and "operating netback", which are considered "non-GAAP financial measures" and the terms "cash flow per diluted share", "free cash flow per diluted share", "operating netback per-boe", and "cash flow per-boe", which are considered "non-GAAP financial ratios". These terms do not have a standardized meaning prescribed by GAAP. In addition, this news release contains the terms "adjusted working capital" and "net debt", which are considered "capital management measures" and do not have standardized meanings prescribed by GAAP. Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Investors are cautioned that these measures should not be construed as an alternative to or more meaningful than the most directly comparable GAAP measures in evaluating the Company's performance. See "Non-GAAP and Other Financial Measures" in the most recent Management's Discussion and Analysis for more information on the definition and description of these terms.

Non-GAAP Financial Measures

Cash Flow

Management uses the term "cash flow" for its own performance measure and to provide shareholders and potential investors with a measurement of the Company's efficiency and its ability to generate the cash (net of current taxes) necessary to fund its future growth expenditures, to repay debt or to pay dividends.  The most directly comparable GAAP measure for cash flow is cash flow from operating activities.  A summary of the reconciliation of cash flow from operating activities to cash flow, is set forth below:

	Three Months Ended  September 30,		Nine Months Ended  September 30,
(000s)	2026	2025	2026	2025
Cash flow from operating activities (per GAAP)	$ 704,104	$  853,547	$ 2,290,524	$ 2,686,907
Current tax recovery (expense)	6,894	(27,240)	26,662	(22,189)
Cash taxes paid (recovered)	(30)	9,204	19,748	28,136
Change in non-cash working capital	77,303	(115,935)	99,581	(187,401)
Cash flow	$ 788,271	$  719,576	$ 2,436,515	$ 2,505,453

Free Cash Flow

Management uses the term "free cash flow" for its own performance measure and to provide shareholders and potential investors with a measurement of the Company's ability to manage debt levels and return value to shareholders.  Free cash flow is defined as cash flow less capital expenditures, excluding acquisitions and dispositions.  The most directly comparable GAAP measure for cash flow is cash flow from operating activities.  A summary of the reconciliation of cash flow from operating activities to free cash flow is set forth below:

	Three Months Ended  September 30,		Nine Months Ended  September 30,
(000s)	2026	2025	2026	2025
Cash flow from operating activities (per GAAP)	$ 704,104	$  853,547	$ 2,290,524	$ 2,686,907
Current tax recovery (expense)	6,894	(27,240)	26,662	(22,189)
Cash taxes paid (recovered)	(30)	9,204	19,748	28,136
Change in non-cash working capital	77,303	(115,935)	99,581	(187,401)
Cash flow	$ 788,271	$  719,576	$ 2,436,515	$ 2,505,453
Capital expenditures	(727,782)	(774,037)	(1,191,306)	(2,104,294)
Property acquisitions	350	5,140	2,179	17,283
Proceeds from divestitures	(653)	(73,074)	(793,092)	(74,821)
Free cash flow	$   60,186	$  (122,395)	$ 454,296	$ 343,621

Capital Expenditures

Management uses the term "capital expenditures" as a measure of capital investment in exploration and production activity, as well as property acquisitions and divestitures.  The most directly comparable GAAP measure for capital expenditures is cash flow used in investing activities.  A summary of the reconciliation of cash flow used in investing activities to capital expenditures is set forth below:

	Three Months Ended  September 30,		Nine Months Ended  September 30,
(000s)	2026	2025	2026	2025
Cash flow used in investing activities (per GAAP)	$   623,957	$  692,374	$ 1,293,364	$ 2,209,673
Investment in long-term asset	–	(11,800)	–	(11,800)
Corporate acquisition	–	–	(13,636)	–
Proceeds from sale of investments	–	–	9,092	–
Change in non-cash working capital	103,825	93,463	(97,514)	(93,579)
Capital expenditures	$   727,782	$  774,037	$ 1,191,306	$ 2,104,294

EP Expenditures

Management uses the term "EP expenditures" or exploration and production expenditures as a measure of capital investment in exploration and production activity, and such spending is compared to the Company's annual budgeted exploration and production expenditures.  The most directly comparable GAAP measure for exploration and production spending is cash flow used in investing activities.  A summary of the reconciliation of cash flow used in investing activities to exploration and production expenditures is set forth below:

	Three Months Ended  September 30,		Nine Months Ended  September 30,
(000s)	2026	2025	2026	2025
Cash flow used in investing activities (per GAAP)	$   623,957	$ 692,374	$ 1,293,364	$ 2,209,673
Change in non-cash working capital	103,825	93,463	(97,514)	(93,579)
Investment in long-term asset	–	(11,800)	–	(11,800)
Corporate acquisition	–	–	(13,636)	–
Proceeds from sale of investment	–	–	9,092	–
Property acquisitions	(350)	(5,140)	(2,179)	(17,283)
Proceeds from divestitures	653	73,074	793,092	74,821
Other	(17,448)	(16,499)	(52,260)	(48,855)
EP Expenditures	$   710,637	$  825,472	$ 1,929,959	$ 2,112,977

Operating Netback

Management uses the term "operating netback" as a key performance indicator and one that is commonly presented by other oil and natural gas producers.  Operating netback is defined as the sum of commodity sales from production, premium on risk management activities and realized gains on financial instruments less the sum of royalties, transportation costs and operating expenses.  A summary of the reconciliation of operating netback from commodity sales from production, which is a GAAP measure, is set forth below:

	Three Months Ended  September 30,		Nine Months Ended  September 30,
(000s)	2026	2025	2026	2025
Commodity sales from production	$ 1,218,475	$    924,974	$ 4,014,052	$    3,517,007
Premium on risk management activities	217,934	427,209	590,693	1,027,464
Realized gain on financial instruments	85,086	126,814	103,677	332,168
Royalties	(148,999)	(109,271)	(462,395)	(378,758)
Operating expenses	(244,862)	(280,524)	(778,076)	(865,652)
Transportation costs	(271,546)	(291,260)	(874,933)	(891,260)
Operating netback	$  856,088	$    797,942	$ 2,593,018	$    2,740,969

Non-GAAP Financial Ratios

Operating Netback per-boe

Management calculates "operating netback per-boe" as operating netback divided by total production for the period.  Operating netback per-boe is a key performance indicator and measure of operational efficiency and one that is commonly presented by other oil and natural gas producers.  A summary of the calculation of operating netback per-boe, is set forth below:

	Three Months Ended  September 30,		Nine Months Ended  September 30,
($/boe)	2026	2025	2026	2025
Revenue, excluding processing income	$  27.85	$   25.33	$  27.92	$   28.30
Royalties	(2.73)	(1.87)	(2.74)	(2.20)
Operating expenses	(4.48)	(4.80)	(4.61)	(5.02)
Transportation costs	(4.97)	(4.99)	(5.19)	(5.17)
Operating netback	$  15.67	$   13.67	$  15.38	$   15.91

Capital Management Measures

Adjusted Working Capital

Management uses the term "adjusted working capital" for its own performance measures and to provide shareholders and potential investors with a measurement of the Company's liquidity.  A summary of the reconciliation of working capital (deficit) to adjusted working capital (deficit), is set forth below:

(000s)	As at September 30, 2026	As at  December 31, 2025
Working capital (deficit)	$   (357,631)	$    (419,306)
Fair value of financial instruments – short-term (asset)	(554,257)	(135,676)
Lease liabilities – short-term	7,778	8,034
Decommissioning obligations – short-term	64,000	75,000
Unrealized foreign exchange in working capital – liability (asset)	(1,025)	991
Adjusted working capital (deficit)	$   (841,135)	$    (470,957)

Net Debt

Management uses the term "net debt", as a key measure for evaluating its capital structure and to provide shareholders and potential investors with a measurement of the Company's total indebtedness.  A summary of the composition of net debt, is set forth below:

(000s)	As at September 30, 2026	As at December 31, 2025
Long-term debt	$     (698,561)	$    (1,052,914)
Adjusted working capital (deficit)	(841,135)	(470,957)
Net debt	$   (1,539,696)	$    (1,523,871)

Supplementary Financial Measures

The following measures are supplementary financial measures: cash flow per diluted share, operating expenses ($/boe), cash general and administrative expenses ($/boe) and transportation costs ($/boe). These measures are calculated by dividing the numerator by a diluted share count or by total production for the period, depending on the financial measure discussed. In addition, FCF Yield is also a supplemental financial measure calculated by dividing the applicable FCF by the applicable market capitalization, which is calculated by multiplying the current share price by the current shares outstanding at the applicable time.

OIL AND GAS METRICS

This news release contains certain oil and gas metrics which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included in this document to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the Company's future performance and future performance may not compare to the Company's performance in previous periods and therefore such metrics should not be unduly relied upon.

SUPPLEMENTAL INFORMATION REGARDING PRODUCT TYPES

This news release includes references to Q3 2026 average daily production and Q4 2026 and full year 2027 forecast average daily production. The following table is intended to provide supplemental information about the product type composition for each of the production figures that are provided in this news release:

	Light & Medium Crude Oil^(1)		Conventional Natural Gas		Shale Natural Gas		Natural Gas Liquids^(1)		Oil Equivalent Total
	Company Gross (bbls)		Company Gross (mcf)		Company Gross (mcf)		Company Gross (bbls)		Company Gross (boe)
Q3 2026 Average Daily Production	38,949		1,483,845		1,402,515		73,721		593,730
Q4 2026 Forecast Average Daily Production	43,500		1,561,000		1,538,000		80,000		640,000
2027 Forecast Average Daily Production	47,500		1,495,000		1,670,000		80,000		655,000

Notes:
(1)	For the purposes of this disclosure, condensate has been combined with Light and Medium Crude Oil as the associated revenues and certain costs of condensate are similar to Light and Medium Crude Oil. Accordingly, NGLs in this disclosure exclude condensate.

CREDIT RATINGS

Credit ratings are intended to provide investors with an independent measure of credit quality of an issue of securities. Credit ratings are not recommendations to purchase, hold or sell securities and do not address the market price or suitability of a specific security for a particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future if, in its judgment, circumstances so warrant.

INITIAL PRODUCTION RATES

Any references in this news release to initial production rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the company. Such rates are based on field estimates and may be based on limited data available at this time.

GENERAL

See also "Forward-Looking Statements" and "Non-GAAP and Other Financial Measures" in the most recently filed Management's Discussion and Analysis.

CERTAIN DEFINITIONS

1H	first half
2H	second half
AECO	Alberta Energy Company and is the Canadian benchmark price for natural gas
bbl	barrel
bbls/day	barrels per day
bbl/mmcf	barrels per million cubic feet
bcf	billion cubic feet
bcfe	billion cubic feet equivalent
bpd or bbl/d	barrels per day
boe	barrel of oil equivalent
boepd or boe/d	barrel of oil equivalent per day
bopd or bbl/d	barrel of oil, condensate or liquids per day
C2+	a hydrocarbon mixture consisting of ethane and heavier hydrocarbons
CCUS	carbon capture, utilization and storage
DUC	drilled but uncompleted wells
EP	exploration and production
gj	gigajoule
JKM	Japan Korea Marker
LPG	Liquefied Petroleum Gas
mbbls	thousand barrels
mmbbls	million barrels
mboe	thousand barrels of oil equivalent
mboepd	thousand barrels of oil equivalent per day
mcf	thousand cubic feet
mcfpd or mcf/d	thousand cubic feet per day
mcfe	thousand cubic feet equivalent
mmboe	million barrels of oil equivalent
mmbtu	million British thermal units
mmbtu/d	million British thermal units per day
mmcf	million cubic feet
mmcfpd or mmcf/d	million cubic feet per day
natural gas	conventional natural gas and shale gas
NEBC	Northeast British Columbia
NGL or NGLs	natural gas liquids
PG&E	Pacific Gas & Electric
Tcf	trillion cubic feet
TTF	Dutch Title Transfer, a natural gas pricing location within the Netherlands
Tier 1	Tier 1 in reference to locations or inventory refers to the most productive and high- quality drilling locations or inventory in the Company's estimation, characterized by superior geological properties and anticipated higher initial production rates. These drilling locations or inventory are considered by the Company the best for drilling due to their potential for higher productivity and profitability

MANAGEMENT'S DISCUSSION AND ANALYSIS AND CONSOLIDATED FINANCIAL STATEMENTS

To view Tourmaline's Management's Discussion and Analysis and Consolidated Financial Statements for the periods ended September 30, 2026 and 2025, please refer to SEDAR+ (www.sedarplus.ca) or Tourmaline's website at www.tourmalineoil.com. 

ABOUT TOURMALINE OIL CORP.

Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest-development-cost natural gas in North America.  We are an investment grade exploration and production company providing strong and predictable operating and financial performance through the development of our two core areas in the Western Canadian Sedimentary Basin.  With our existing large reserve base, decades-long drilling inventory, relentless focus on execution, cost management, safety and environmental performance improvement, we are excited to provide shareholders an excellent return on capital and an attractive source of income through our base dividend and surplus free cash flow distribution strategies.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Tourmaline Oil Corp.
Michael Rose
Chairman, President and Chief Executive Officer
[phone]

OR

Tourmaline Oil Corp.
Jamie Heard
Chief Financial Officer
[phone], jamie[email protected]

OR

Tourmaline Oil Corp.
Scott Kirker
Chief Legal Officer and External Affairs
[phone], [email protected]

OR

Tourmaline Oil Corp.
Suite 2900, 250 – 6th Avenue S.W.
Calgary, Alberta  T2P 3H7
Phone: [phone]; Facsimile: [phone]
E-mail: [email protected]
Website: www.tourmalineoil.com

SOURCE Tourmaline Oil Corp.