Tamarack Valley Energy Ltd T.TVE

25% of cardium sale going to share buybacks

[BigSchlick]

After reviewing the 3rd quarter financials tamarack was only $28 million away from the debt level unlocking 25% returns. The cardium asset sales close on approx November 3, this means the cash amount of $121 million will be going towards debt as well as share buybacks in early November. With this is mind the sale will allow tve to hit its 25% return target and still have roughly $100 million. $25 million of this will go towards share buybacks and $75 million towards debt. So at the close of the sale debt will fall to roughly $1.025 billion and we will get $25million of share buybacks. That's enough to buyback over 6 million shares in the coming weeks!! Production in October was also approx 70,000 barrels/day. In conclusion buybacks are starting imminently and the 50%  shareholder returns debt target will be hit sometime in Q1 2024. My projection is tve hits the $900 million debt mark by the end of January or February considering 25% of fcf goes to shareholders from here on in. 
Cheers

[Oldgreyguy]

I don't think so.  The wording on extra dividends/buybacks reads based on previous quarter.  As such I believe buybacks will begin Q1 2024 after debt targets are achieved during Q4.  The exciting part of this is how quickly they could get debt below $900 and bump shareholder share to 50%.  I imagine this will be clarified in the conference call.

[masfortuna]

 Debt target of 1.1 billion was reached this quarter. nothing wrong with buybacks unless the company rewards their executives with shares or goes out and buys another company using shares. oh wait...

[LNGStrong]

Comments like this are not sensible. How many corporations don't have an employee program based on cash and share incentives and distributions. It's part of the business. 

[UnderValued]

I think the net debt reduction to $1.128 billion includes the sale of Cardium even though it hasn't actually closed yet. So I don't think anything from the Cardium sale will go to buybacks as it is already included in the debt reduction. Here's the quote from the MD&A:    "Debt & Return of Capital – With Free Funds Flow, combined with the $39.5 million non

[Oldgreyguy]

That's the way I heard it as well.  I'm a bit surprised that they would quote a Q3 debt number that includes the sale which had obviously not closed as of Q3 but that is what I think they said.  Good news is the share price should appreciate when they start buybacks as that should absorb any excess.

[Seppelt]

I would be maxing buybacks now in Q4 and switching to aggressive debt reduction in 2024. That is because as of January 1st, 2024 the federal government will implement a 2% tax on share buybacks. On a $20 million annual spend it's $400,000. Better to use all these funds on debt reduction and dividends. Note: "The measure strives to deter buybacks in order to “encourage firms to re-invest