Globe & Mail 08:44 AM EDT, 10/28/2021 (MT Newswires) -- Tamarack Valley Energy (TVE.TO) late Wednesday said it returned to a profit in the third quarter as oil and gas production and prices nearly doubled and it looks to return more of its free cash to shareholders and boosted production guidance.
The company said it earned C$20.03 million, or C$0.05 per share, in the period, compared with a loss of C$5.78 million, or C$0.03, in the third quarter of 2020. Adjusted funds flow more than tripled to C$102.49 million, or C$0.25, from C$30.84 million, or C$0.14, while revenue rose to C$212.27 million from C$57.79 million.
The rise in the Western Canadian oil and gas producer's profit came as its oil and gas production climbed 92% to 41,256 barrels of oil equivalent per day, while its average price per barrel also rose 92% to C$55.73 per barrel equivalent.
Tamarack said it is altering its dividend policy to return more of its free cash flow to shareholders. The company will look to pay out 25% of free cash flow to its shareholders, with the first payment, expected to be C$0.0083 per share, made February 15 to shareholders of record on Jan.31. It will raise its payout to 50% of free cash flow once it reaches debt targets, using special dividends or share buybacks.
The company also raised its production guidance for this year to an average of 34,250 barrels of oil equivalent per day, from 33,000 boepd.
Tamarack shares closed down C$0.05 to C$3.58 Wednesday on the Toronto Stock Exchange.