Tamarack Valley Energy Ltd T.TVE

Alternate Symbol(s): TNEYF

Energy Oil & Gas E&P

Tamarack Valley Energy Ltd. is a Canada-based oil and gas exploration and production company. The Company's asset portfolio is comprised of oil plays in Alberta, including Charlie Lake, Clearwater and several enhanced oil recovery (EOR) opportunities. The Company has an inventory of low-risk, oil development drilling locations. Its Clearwater oil play is located in north-central Alberta. Its Charlie Lake oil play is located in northwestern Alberta. Its EOR portfolio includes a set of assets across Alberta representing a range of formations and production types. The Company’s subsidiary is Tamarack Ridge Resources Inc.

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Tamarack Valley Energy Ltd > RBC

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Post by retiredcfon Oct 31, 2024 9:05am

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Post# 36290332

RBC

October 31, 2024

Tamarack Valley Energy Ltd.
Q3/24 - Results Ahead of Street

TSX: TVE | CAD 3.90 | Outperform | Speculative Risk | Price Target CAD 4.50

Sentiment: Neutral

Tamarack released Q3/24 results which were ahead of street expectations on both production and cash flow reflecting continued success in the Clearwater/Charlie Lake; key infrastructure investments are in place to support future growth. The company will release its 2025 budget on December 4, 2024 (pre-market).

Conference Call. Thursday, October 31st at 9:30am MT (11:30am ET)| Toll-Free 1-888-664-6383

Key Points:

Q3/24 volumes of 65,024 boe/d (85% liquids) were ahead of RBC/Street estimates (62,567/62,641); CFPS of $0.40/sh came in ahead of RBC/Street estimates ($0.37/$0.37) with variances including higher volumes, stronger realizations than expected and lower royalties and operating costs. Q3/24 capital spend of $109 million came in well below RBC/Street estimates ($130/ $132mm).
2024 base production guidance increased to 63,500 boe/d (from 62,000 boe/d) (midpoint) with base capital pointed toward the upper end of its previous guidance $440 million (from $415 million) (midpoint). The company will drill 4 Charlie Lake wells in Q4/24 utilizing a portion of the CIP expansion proceeds prior to CSV Albright commissioning in early 2025 and will expand its waterflood program in the Clearwater.
Tamarack increased its base dividend to $0.03825/sh (from $0.0375/sh) or $0.1530/annually, which represents an increase of 2%. Tamarack exited Q3/24 with $807 million in net debt (RBC/consensus: $834/$852mm), mapping to a $318 million reduction (-28%) y/y and below its 2nd tranche of its net debt threshold ($900mm). During the quarter, TVE bought back 12mm shares for ~$50mm and YTD, have bought back 12.3mm shares for a total of $83mm.
Operational/infrastructure highlights include (1) Fan designs in the South Clearwater have been delivering lower declines where secondary recovery has not yet been established. (2) Waterflood activity has resulted in 1.5 mboe/d of incremental oil production. (3) The company expects to have >9% of its Clearwater production supported by waterflood by YE24. (3) In late Q3/24, TVE brought on two wells in Pipestone (14-34 pad) and achieved an IP30 rate of 1.3 mboe/d (86% liquids). (4) During Q3, TVE brought two Wembley wells (11-11 pad) which exhibited encouraging test rates similar to two Q4/23 drills from the same location.