The
Tourmaline will pay
Tourmaline has been undergoing a years-long aggressive exploration, development, production and acquisition program in the
Tourmaline's current production in
Bonavista is a privately held natural gas producer, also headquartered in
In a news release, Tourmaline said the deal represents an important component of the company's ongoing consolidation strategy, adding decades of inventory and supplementing its existing
"The Bonavista assets are a natural extension of Tourmaline's existing operations in the
"I think Tourmaline is just looking at their core areas and seeing what's available there to augment those," said
"The Bonavista transaction further enhances their
Tourmaline said the acquisition is expected to be immediately accretive to Tourmaline's 2024 free cash flow yield.
In addition to the acquisition, Tourmaline announced it will increase its quarterly base dividend effective in the fourth quarter to
The Tourmaline board also declared a special dividend of
The deal is expected to close in the second half of November, subject to customary regulatory and stock exchange approvals.
In 2021, Tourmaline acquired
This report by The Canadian Press was first published
Companies in this story: (TSX:TOU)
© 2023 The Canadian Press. All rights reserved., source