While We Wait For Q1 Financials - This From 12 Days Ago Return of Capital Update
20% Monthly Dividend Increase
Tamarack is pleased to announce that it plans to increase its base cash dividend by 20% to $0.010 per share per month beginning with the June dividend declaration, with an anticipated payment date of July 15, 2022. The increase in Tamarack's monthly cash dividend reflects the improvement in sustainable free funds flow (FFF)(1) per share the Company has generated since implementation of its dividend policy in October 2021. The Company's improved FFF(1) per share profile is a cumulative result of enhanced sustainable FFF(1) along with the acquisitions of Crestwynd Exploration Ltd. (closed February 2022) and Rolling Hills, which will continue to drive accretion at flat pricing of US$55/bbl WTI and $2.50/GJ AECO.
Enhanced Return Update
Based on current forward commodity prices, Tamarack is pleased to announce that it expects to implement an enhanced return to shareholders payable in Q3 2022 that will be funded through free funds flow(1) that the Company generates during Q2 2022, prior to giving effect to the Clearwater Transactions. Tamarack's implementation of the enhanced return is based on Tamarack's expectation that, prior to giving effect to the Clearwater Transactions, it would have achieved the upper end of its current long-term debt threshold of $325 to $375 million during Q2 2022. Details of the enhanced return will be specified with Tamarack's release of Q2 2022 results in August 2022.
Upon closing of the Clearwater Transactions, Tamarack will increase its long-term debt threshold to $350 to $400 million, predicated on a forecasted net debt to annual adjusted funds flow of 1.0x at US$45/bbl WTI. Pending market conditions and subject to the stated debt targets, Tamarack plans to return up to 50% of the previous quarter's free funds flow(1), inclusive of base dividends, to its shareholders through tactical share buybacks and/or special dividends. The remaining free funds flow(1) will be allocated to further debt repayment and future acquisition opportunities.