Welcome to Tourmaline's annual meeting. I am Mike Rose, Tourmaline's Chairman, President, and CEO, and will act as Chair of the meeting. We are forced to host the meeting once again through this virtual platform, accessible to all of our shareholders regardless of physical location. As we continue to navigate the unprecedented circumstances of COVID-19, the health and safety of our employees, communities, shareholders, and other stakeholders remain our foremost priority. I would like to thank Tourmaline's employees, management team, and board for their part in protecting the health and safety of the public and our employees. We hope that hosting a virtual meeting will increase shareholder participation and provide you with an equal opportunity to participate at the meeting regardless of your geographic location, your particular constraints, circumstances, or risks you may be facing as a result of COVID-19. Today's meeting is set out in the company's Information Circular.
The second part will include a presentation about the company, followed by a general question-and-answer session. With your approval, I will ask the Vice President, Finance, and CFO to act as Secretary, and Representatives of AST Trust Company to act as scrutineers of the meeting. I will now ask Brian Robinson to deal with certain of the meeting formalities.
I received an affidavit from AST Trust Company as to the due mailing to shareholders of the meeting materials. This affidavit, together with copies of the documents mailed to shareholders, will be kept with the minutes of this meeting. With the consent of the meeting, the reading of the notice of meeting will be dispensed with. Business may be transacted at this meeting if two persons are present, holding or representing by proxy not less than 25% of the shares entitled to vote at the meeting. I've been advised by the scrutineers that there are present by proxy a sufficient number of persons holding a sufficient number of shares entitled to vote at the meeting to constitute a quorum. As there is a quorum present, this meeting is regularly called and properly constituted for the transaction of business.
In the interest of efficiency, certain shareholders have volunteered to move or second the motions. In particular, Mike Rose will make each motion, and either Scott Kirker, or myself, both proxy holders, will second each of the motions so moved by Mike Rose. Voting on the items of business to come before today's meeting is being conducted by poll via a single electronic ballot that is now available on the web portal. Only registered shareholders and duly appointed proxy holders are able to vote or ask questions. Voting can only be done through the virtual voting platform on the webcast. If you are a registered shareholder or proxy holder and wish to vote, click the voting icon at the top of the webcast page. Voting can be completed at any time from now until the polls are closed at the end of the formal business of the meeting.
If you have already voted in advance of the meeting and do not wish to change your vote, you do not need to vote again during the meeting. For those who have not yet voted, we encourage you to vote now. Questions can also only be submitted through the webcast platform. If you are a registered shareholder or proxy holder and wish to ask a question, click the question icon at the top of the webcast page, type in your question in the text box at the bottom of the messaging screen, and then click the send button. If your question relates to a specific motion, please start your question by identifying the motion.
We will respond to questions relating to specific motions before the closing of the polls, and we'll save all other questions for the general question-and-answer session at the end of the presentation on the company following the formal portion of the meeting. We will receive the questions and read them out in order for everybody to be aware of the question being addressed. If we have a number of questions that are the same or very similar, we will consolidate the questions. We will endeavor to address all general questions. However, please note that due to time constraints, we may not be able to do so. If you have a question, we encourage you to submit them now. Questions can be submitted throughout the meeting. Finally, we'd like to remind you that our answers to your questions and our presentation may contain forward-looking information.
By its nature, this information contains forecast assumptions and expectations about future outcomes, which are subject to the risks and uncertainties discussed more fully in our public disclosure filings. We will now go through each of the items on the agenda in turn.
The first item of business is the presentation to shareholders of the company's financial statements for the year ended December 31, 2020, and the auditor's report thereon. A copy of the financial statements has been mailed to shareholders and is also available on our website. The next item of business is the election of directors. In accordance with Tourmaline's bylaws, the board has fixed the number of nominated directors to be elected at this meeting at 10. Accordingly, 10 directors are to be elected at this meeting.
The only persons who have been nominated to stand for election as directors of Tourmaline, in accordance with the procedures set forth in the advance notice provisions contained in Tourmaline's bylaws, are the nominees set forth in the Information Circular for this meeting. As Chair, I nominate the following individuals as directors of the company to hold office until the next annual election of directors or until their successors are elected or appointed, subject to the provisions of the Business Corporations Act, Alberta, and the bylaws of the company: Ron Wigham, Janet Weiss, Lucy Miller, Andrew MacDonald, John Elick, Lee Baker, William Armstrong, Jill Angevine, Brian Robinson, Michael Rose. There being no further nominations delivered in accordance with our bylaws, I declare nominations closed.
Please cast your votes on the election of directors now or in any event prior to the closing of the polls, remembering that if you have already voted in advance and do not wish to change your vote, no further action is required. The next item of business is the appointment of auditors. As Chair, I move that the firm KPMG LLP Chartered Professional Accountants be appointed auditors of the company until the next annual meeting or until their successors are appointed, and that their remuneration as such be fixed by the board of directors. Please cast your votes on the appointment of auditors now or in any event prior to the closing of the polls, remembering that if you have already voted in advance and do not wish to change your vote, no further action is required.
We will now take a short pause to answer any questions that have been submitted and to permit any registered shareholder or proxy holder who has not already done so to record their votes on the motions before the meeting. No questions.
The polls are now closed. I have now received the preliminary scrutineer's report. With respect to the election of directors, I am advised by the scrutineers that each of the proposed nominees has been duly elected. With respect to the resolutions to appoint the auditors, I am advised by the scrutineers that these resolutions have been duly carried. The detailed results of this meeting will be announced in a press release and also included in a voting report to be filed on SEDAR as soon as practical after this meeting. As there is no further formal business, I declare the formal portion of this meeting terminated. We will now move on to the second part of the meeting, which consists of a presentation about the company and an opportunity for registered shareholders and proxy holders to ask questions of management through the virtual platform.
So welcome all to our 2021 AGM. I'm pleased to provide an update on the company and ongoing activities. Thanks to our dedicated, best-in-class staff who clearly delivered during these challenging times, to our ever-supportive board of directors, and to our shareholders for their support and conviction through all of this. The current situation and the outlook are a lot different than where we were all at a year ago. Looking back, 2020 was indeed a challenging year for everyone, every company, and every sector. Tourmaline actually had a very strong 2020, particularly in the second half of the year. Through the efforts of the entire staff, we played through the pandemic and accomplished a lot while many were a little more tentative. And every group in this company delivered. We reached record production during 2020 and exited at over 400,000 BOEs per day.
We had the largest reserve addition in company history at over 825 million BOEs. We completed four corporate acquisitions that were accretive on all measures, including free cash flow generation. We delivered record annual free cash flow and had very strong earnings. We increased the dividend for the fourth time and the third consecutive year. Tourmaline was the most active operator in the Western Canadian Sedimentary Basin during 2020. The encouraging, relentless accretion in all relevant categories since our IPO in 2010 continues. The production growth CAGR between 2010 and 2020 is 25%. What have we built for shareholders since 2008? Tourmaline has gone from zero to senior Canadian producer in 12 and a half years, now producing in excess of 410,000 BOEs per day. We are Canada's largest natural gas and largest natural gas liquid producer.
After 12 and a half years, we have three enormous core complexes that have been completely de-risked by the drilling of approximately 1,800 horizontal wells, with the infrastructure built and in place in all three complexes. We are actually Canada's fifth largest gas midstream company by processing volume. We commenced paying a sustainable growing dividend in 2018 and have increased it five times since then. Our 2021 payout ratio is 62% and free cash flow yield of 13%. We will generate over CAD 1 billion in free cash flow this year and next. And our debt to cash flow will be approximately 0.5 times by the end of this year. In the Canadian senior producer group, Tourmaline has the lowest net CO2 emissions and the lowest emission intensity. Our first five-year environmental performance improvement plan delivered a material reduction in CO2 emission intensity.
We are now into our second five-year plan with aggressive hard targets and a realistic technology plan to achieve them. Two areas of environmental performance improvement that we focus on are systematically displacing diesel in our drilling operations and our extensive water management business that ultimately eliminates freshwater usage in well operations. Tourmaline was recognized independently, winning awards in 2020 for both of these initiatives. It's a great accomplishment involving many Tourmaline employees both in the field and in the office, and we're not done yet. The diesel displacement initiative is now being expanded into our frac business. We'll be utilizing the first nat gas-powered frac spread later this year at Gundy. Earnings have always been important to us as they are a very good proxy of the underlying profitability of your E&P business.
Tourmaline was the only Canadian large cap E&P to post positive earnings in 2020, and they were substantial at over CAD 600 million, and we have remained profitable through long periods of low gas prices. As mentioned, we're Canada's largest natural gas producer, and we rank in the top six on a North American basis. Being large certainly has its advantages, but the real goal is to be the most profitable and ultimately control the largest, lowest development cost, lowest emission natural gas supply on the continent, and we're getting there quite quickly. Given our size, Tourmaline is also a major conventional liquids producer. We are the country's largest NGL producer and second largest condensate producer. We're actually ahead on 2021 original liquids production guidance. We broached the 100,000 barrel per day total liquid milestone from a production standpoint several times already.
We'll be there on a full-time consistent basis when Gundy Phase 2 comes on stream early in January of 2022. Looking at our current five-year development plan, we were probably the first Canadian E&P to introduce this five-year development plan concept. It actually goes back to 2005 in Duvernay Oil Corp days. We updated the plan in May when we announced our North Montney consolidation activities and our acceleration of the Gundy Phase 2 plant project. This is the organic EP growth engine of the company. M&A activities are complementary to this plan. The five-year EP organic plan features modest 3-5% per annual production growth, consistent EP capital spending, and at strip pricing material free cash flow generation. The free cash flow yield in 2021 and 2022 is in the 13-15% range. The plan generates 4.5 billion of free cash flow over the next five years.
And that free cash flow will be used for future dividend increases, ongoing debt reduction, incremental M&A, environmental performance improvement initiatives, and tactical share buybacks when deemed constructive. So I'll move quickly to the assets. Tourmaline believes Canada's premier and most profitable natural gas plays are the Alberta Deep Basin and the BC Alberta Montney. And the company is very well positioned in both. Tourmaline's been the largest deep basin producer for some time now. Current production is approximately 250,000 BOEs per day. We have the largest land position, the largest drilling inventory, the largest plant network in this multi-objective lower Cretaceous gas complex that we exploit horizontally. Our interconnected land processing and infrastructure constitute Alberta's largest gas field. Our most significant M&A transactions in 2020 were at the northern end of our deep basin complex with the Jupiter and Modern acquisitions.
We're happy to report that the envisaged drill and complete capital cost reduction targets of 30%-40% have been achieved and that on average well performance has exceeded expectations. We'll have seven rigs working in the Alberta Deep Basin after breakup. Moving to our second major complex, the BC Montney gas condensate asset, we've been expanding the BC Montney gas condensate complex both organically and through M&A activities. There's really two main sub-complexes: our traditional Sunrise-Groundbirch Sundown area, currently producing approximately 50,000 BOEs per day, and our rapidly expanding North Montney complex in Gundy, Conroy, producing approximately 110,000 BOEs per day today. BC production is well ahead of schedule so far in 2021.
We're just about to start our fourth rig in the complex, having been running three through breakup and just about to spud our first pad on the acquired Saguaro lands with that fourth rig. We made the decision to accelerate the installation of Gundy Phase 2, our second 200 million per day deep cut at that site, and announced that two weeks ago. Module construction was well ahead of schedule, so we moved the Q1 2022 installation into Q4 of this year so as to have on stream for prospectively higher winter gas pricing. Hence a January 2022 production realization rather than May 2022. Moving to our Gundy Conroy North Montney complex in a little more detail, we announced an acquisition in JV with Saguaro Resources two weeks ago.
We're really excited by their existing asset base and future development potential and the free cash flow generation with our cost structure. Saguaro, coupled with our existing Laprise and Burley assets, will drive our North Montney growth over the next five to seven years. Gundy will reach 400 million per day and 30,000 barrels per day of liquid production early in January with that expansion. We see our Conroy position capable of delivering similar volumes as Gundy, with both facilities staying full for well over 20 years. Right now, the full 400 million per day Conroy development sits outside our five-year plan. These are Tier 1 liquid-rich Montney wells that we can deliver for under CAD 3.5 million drilling complete with EURs of 1.5-1.75 million BOEs each. We're excited about the North Montney and our dominant position in it.
The North Montney will be the prime source for West Coast Canadian LNG and will likely be the premier growth sub-basin in all of North America. It'll grow by a minimum four BCF per day and likely more. There's also a large associated liquids production opportunity as well. Tourmaline has an aggressive plan in place to capture key subsurface assets and infrastructure components and then fully develop this sub-basin in conjunction with LNG startup timing. We expect to be producing up to a BCF a day net to Tourmaline from the North Montney complex in the second half of this decade. We have a rich inventory of future Montney growth projects, only one of which is in our current five-year EP plan. That's Gundy Phase 2.
Projects outside the plan include Conroy that we were just talking about, Aitken, which is in between Gundy and Conroy, and Sunrise phases two and three. Tourmaline is currently Canada's third largest. All evolve into the largest over the next few years with this inventory. We'll be mindful not to do that too quickly and oversupply the basin. A large Conroy development will be timed to LNG Canada, as mentioned, which we see very constructive for basin supply demand dynamics and realized pricing at AECO and Station 2 for a long period of time. Our smaller Peace River High Triassic Oil Complex continues to perform very well with flat production volumes of 25,000 BOEs per day. It's on a maintenance capital budget of CAD 70 million, but it'll generate CAD 115 million of free cash flow this year. So a great little engine providing funds for the entire company.
We continue to reduce D&C CapEx and Opex costs here, improving that free cash flow margin. We run one rig in here. It operates most of the time. We're available on highline power, so not diesel or natural gas. So a really compelling ESG story to add to the many we have already. Our extensive infrastructure network across all three complexes is depicted here, and we really think of it as our fourth core area. As mentioned, we're the fifth largest midstream company in Canada by processing volume in excess of 2 Bcf per day currently. Average plant OPEX across our 21-plant complex is less than CAD 0.15/Mcf, by far the lowest in that infrastructure group. It also reaches all 20,000 locations in our future development drilling inventory, making future reserve conversions and additions ever more economic.
And on the reserve front, we had our best year ever in 2020, adding over 825 million BOEs of 2P reserves, taking the total of 3.3 billion BOEs. And we've only booked 13% of the existing drilling inventory that we have. Reserve addition costs are best in the basin and steadily improving. And reserves matter as they underpin the value of E&Ps in the long term. Our 2P reserve NAV is now CAD 58 per share on engineering pricing at year-end 2020, with decades of economic additions to come on top of that. So a very attractive combination of growth and value. Tourmaline was the only large cap Canadian oil and gas company to grow reserve value in 2020, increasing it by 2.1 billion. With our Q1 drilling results and performance and our M&A activity in 2021 to date, we are back to having the largest 2P gas reserves in Canada.
Of note, we also have the third largest conventional liquid reserves in the country as well. Both provide a rock-solid underpinning to our value. And our well-documented and planned future development drilling inventory represents further significant future value for shareholders. As some North American E&Ps start to move into the back half of their drilling inventories and concerns arise about their future production profiles, we are still in the first inning with our inventory, and we believe our batting order is stacked. This is the largest development drilling inventory of any North American E&P. Full stop. Despite proclamations last week about the future of oil and gas, the world needs these reserves. Tourmaline will be there providing much-needed supply for decades, and it'll be with ever cleaner, lower emission supplies that we have.
We're excited about providing the developing world with low-cost, low-emission Canadian natural gas and improving their quality of life and standard of living. These are the things Canada should be doing. One of the key drivers behind our economic reserve additions are commodity price drops, and to be able to generate free cash flow from an acquired asset where the previous owner couldn't is our lower capital costs that emanate from our engineering execution machine. When you consistently drill the lowest cost completed horizontals in all three core complexes, you have a distinct advantage. That cost performance, coupled with the fact that the majority of our infrastructure complex is already built, have yielded ever-improving capital efficiencies, with 2020 and 2021 being our best reported to date.
The company continues to pay very close attention to all elements of the cash cost equation, ensuring we're top quartile to top decile in each element. For example, we believe our debt service costs are the lowest in the North American EP sector, with an all-effective interest rate below 3% for 2021. Of note, we did CAD 250 million of seven-year notes in Q1 of this year with an interest rate coupon of 2.077%. On the marketing and transportation front, Tourmaline has been evolving its marketing and diversification strategy for over eight years now. We sell gas at the two Canadian hubs, AECO and Station 2, as well as six NYMEX-based and priced hubs. We'll be exporting three-quarters of a Bcf a day to those U.S. hubs by 2023, all on long-term firm transport.
Tourmaline sells approximately 75% of its natural gas in the western half of North America, where supply-demand dynamics have produced the best pricing, and these dynamics at those hubs are expected to persist for many years. This diversification and transport allow the company to sell gas directly into price spikes caused by supply dislocation during weather events, such as what happened this past February, but we'll be able to do that each and every year. The next weather event may, in fact, be this summer in California, a market where Tourmaline is the largest supplier. In summary, on the marketing side, Tourmaline is the most diversified large-cap North American gas producer. To match our five-year E&P organic development plans, we have five-year environmental performance improvement plans as well. The first five-year plan delivered a material reduction in CO2 intensity and a dramatic drop in freshwater usage.
We're now into our second five-year plan with well-defined hard targets and an internal technology plan to achieve them. Tourmaline embraces ever-improving technology in all aspects of the company's business. Our activity on the environmental performance improvement front will be no different. It'll be driven by relentless improvements in the areas of continuous emission reduction, CCS, and the likelihood of some potential step-change new technological breakthroughs. There are a lot of brilliant minds in the world working on all of this, and if history is the guide, the results, no doubt, will be stunning. As shareholders look out towards 2022, Tourmaline's business model and low-cost structure provide very strong cash flow and free cash flow sustainability. Our maintenance capital program and dividend are fully funded at a NYMEX price of $1.75 per Mcf, so a very resilient position to be in.
Tourmaline has maintained a sustainable and growing dividend since 2018. We've increased it five times over the past four years. We plan to continue that progression with modest sustainable annual dividend increases that we stress test in very harsh commodity price environments for a five-year period. So to sum up, we believe Tourmaline offers existing shareholders and future shareholders the most attractive natural gas investment in North America. Our margin, our free cash flow yield, our execution capability, our inventory, and our market diversification are all leading the pack in the large-cap gas space. With the backdrop of improved commodity prices, we look forward to the balance of this year and 2022 and providing ever-stronger returns to our shareholders. So that concludes the formal remarks, and we've got a crew of us here to answer questions that may come up. Okay.
There were no questions, so we really appreciate all of you that dialed in. We're here if you have further questions, and you can reach Jamie, Brian, or myself, or Scott, or Katie at any time of day that you want. Thank you.