Tamarack Valley Energy Ltd T.TVE

Ink Research

[retiredcf]

Today, we review the top three performing INK Canadian Insider (INKCIN) Index oil patch stocks since its rebalancing on

November 15th, 2024. INK's CEO will also be reviewing some of these stocks with Andrew Bell on BNN Bloomberg TV on January 8th. The INK CIN Index rebalances back to equal weight four times a year (learn more at index.inkresearch.com). Latin America focused Frontera Energy (FEC) has been the best-performing INK CIN Index energy stock, up 18.8% since rebalancing. On December 12th, FEC reported Q4 average production of 42,450 boe/d (40,616 boe/d & 94% oil in Q3). FEC has retained Goldman Sachs to assist with a strategic review of its Colombia infrastructure business which includes Colombia ODL pipelines, an import-export terminal, water treatment, and a palm oil plantation. On December 16th, FEC announced a $42 million issuer bid to repurchase up to 3.5 million shares via tender at $12.00 per share until January 24th.

Tamarack Valley Energy (TVE) is up 13.1% since the fall rebalancing and insiders have been net buyers. On December 4th, TVE said it would budget a midpoint of $440 million in capex in 2025 to generate expected midpoint production of 66,000 boe/d (84% oil & NGL). TVE is targeting allocating 60% of (non-GAAP) free funds flow to dividends and buybacks. Based on US$70/bbl WTI crude oil, the budget is expected to deliver $300M in free funds flow. Obsidian Energy (OBE) is up 11.6% since November 15th. OBE has been repurchasing shares but there has been no other public market insider activity since the rebalancing. Perhaps that will change once it releases its budget for 2025. Q3 production averaged 39,714 boe/d (61.3% oil).