05:30 PM EST, 03/06/2024 (MT Newswires) -- Tourmaline Oil (TOU.TO) on Wednesday said it swung back to a fourth-quarter profit will raising its dividend by 7.1% and declaring a special dividend despite weaker natural-gas prices.

The Western Canadian oil and gas producer said it earned C$700.2 million, or C$2.00 per share, in the period, compared with a loss of C$30.37 million, or C$0.09, in the year-prior quarter.

Revenue fell 24% to C$1.66 billion from C$2.18 billion, as its oil and gas production rose 9% to 556,957 barrels of oil equivalent per day while natural gas prices, which account for the bulk of the company's output, fell 38% to C$4.25 per thousand cubic feet.

The company said it is cutting its 2024 capital program to C$2.13 billion from its prior budget of C$2.35 billion, while lowering its production guidance for the year by by 2.5% to around 585,000 barrels of oil equivalent per day.

"Tourmaline does not believe that selling incremental gas volumes into a weak gas market is the best decision or return proposition for shareholders. The company's base gas production is protected by a strong 2024 natural gas hedge book as well as a diversified export portfolio accessing premium priced North American markets," the company noted.

The company is raising its dividend by 7% to C$0.30 per share, and declared a special dividend of C$0.50 per share, one of four special dividends it expects to declare this year. The dividend is payable March 21 to shareholders of record on March 14.

Tourmaline shares fell C$0.31 to C$63.06 on the Toronto Stock Exchange.