Canada’s gas giant trims spending, citing ‘unusually volatile times’

Outages at LNG Canada helped push down the price of natural gas in Western Canada. Photo by Handout /LNG CanadaArticle contentCanada’s largest natural gas producer, Tourmaline Oil Corp., cut its spending plans for the year, citing “unusually volatile times,” and said it could cut more if gas prices remain weak.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe company trimmed $400 million from its 2026 capital budget — which now sits at $2.55 billion — after an unseasonably warm winter and outages at LNG Canada dampened prices for natural gas in Western Canada.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“(Tourmaline) believes that during these unusually volatile times, the optimal business approach is to steadily reduce debt and continuously improve the overall cost structure,” the company said in a statement Wednesday alongside the release of its fourth-quarter results.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“It is prudent to defer certain gas-focused expenditures until a sustained, stronger local price environment materializes.”Article contentThe Calgary-based producer also said it will use proceeds from the nearly $800-million sale of assets in the Peace River region to oilsands major Canadian Natural Resources Ltd. to pay down debt and help fund the build-out of its large gas complex in the Northeast B.C. Montney play.Article contentTourmaline said it expects average production in 2026 to range from 620,000 to 640,000 barrels of oil equivalent per day, down from its earlier forecast of 690,000 to 710,000.Article contentThe natural gas producer reported a fourth-quarter net loss of $655 million, compared with net earnings of $407 million a year earlier — largely reflecting accounting adjustments.Article contentHowever, Tourmaline reported $890 million in cash flow in the quarter, up from $850 million, showing that the business continued to generate strong cash from operations.Article contentMore to come…Article contentTrending Posthaste: Canada loses to the U.S. again, but this time it's not in the hockey rink News Garry Marr: Why your house is still costing you, even if you've paid it off Personal Finance Bank of Canada governor warns of growing risks to financial stability Economy Legal fight over propane terminal clouds Canada's energy export push Energy Posthaste: This dormant pipeline needs to be restarted for the sake of Canada, economists say News Share this article in your social network Get the latest from Meghan Potkins straight to your inbox Sign Up CommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Canada loses to the U.S. again, but this time it's not in the hockey rink News Garry Marr: Why your house is still costing you, even if you've paid it off Personal Finance Bank of Canada governor warns of growing risks to financial stability Economy Legal fight over propane terminal clouds Canada's energy export push Energy Posthaste: This dormant pipeline needs to be restarted for the sake of Canada, economists say News