Noah Zivitz

Managing Editor, BNN Bloomberg

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For the fifth time since the start of last year, Tourmaline Oil is boosting its dividend.

The Calgary-based oil and natural gas producer announced after markets closed Wednesday that its quarterly payment to shareholders will rise to $0.225 per share from $0.20 as of June 30.

Tourmaline has made a habit of sharing its wealth with investors as higher prices and production have padded its coffers. In the company's first quarter, Tourmaline reported record free cash flow of $618.2 million.

The rise in free cash flow has enabled Tourmaline to pay out three special dividends since 2021, most recently with a payment of $1.50 per share on May 19.

Tourmaline said on May 4 it expects to pay quarterly special dividends throughout 2022. In its release Wednesday evening, the company said its cash flow outlook "continues to improve" for this year and 2023.

In a report to clients, RBC Capital Markets Analyst Michael Harvey said he's anticipating special dividend payments of $1.50 per share in every quarter through the end of next year, plus $600 million in share buybacks this year and an additional $750 million in 2023.

Harvey has an outperform recommendation (the equivalent of a buy) on Tourmaline, and a price target of $75.00 per share.