RE:Eric Nuttall's Top Picks Tamarack Valley Energy (TVE TSX)
Tamarack Valley, after two years of operational challenges, has now hit their numbers for three quarters in a row and has become one of the “go to” midcap oil names in Canada. With most of their production now coming from the Clearwater and Charlie Lake (plays with exceptional economics) and 20 years of stay-flat inventory in the Clearwater, Tamarack trades at a 12 per cent/17 per cent free cashflow yield at $70/$80 WTI.
TOP PICK
Tamarack Valley Energy(TVE-T)
21/11/2024
Hit or exceeded numbers for 3 quarters in a row. People have come back to the story. 20 years of stay-flat inventory in the Clearwater, a massively economic play. Benefit of incremental FCF lowering the decline rate. Shareholders likely to get 60% of FCF for the next several years as it pays down debt.
Mid-cap, but doing very well. Deep value. Still believes in $80 oil one day, which would translate to 17% FCF yield, and that's where the juice of the mid-cap shines. Yield is 3.4%.
(Analysts’ price target is $5.50)
Oil / Gas
Eric Nuttall
$4.50
Owned