- Tamarack Valley Energy (TSX:TVE), an Alberta-based oil and gas stock, has declared a monthly dividend of C$0.0125 per share payable on Sept. 16, 2024, to shareholders of record as of Aug. 30, 2024
- The explorer and producer has distinguished itself as a champion of shareholder value since exiting the pandemic
- Tamarack Valley is an oil and gas exploration and production company committed to creating long-term value for its shareholders through sustainable free funds flow, financial stability and the return of capital
- Tamarack Valley Energy stock has added 14.37 per cent year-over-year and 129.38 per cent since 2019
Tamarack Valley Energy (TSX:TVE), an Alberta-based oil and gas stock, has declared a monthly dividend of C$0.0125 per share payable on Sept. 16, 2024, to shareholders of record as of Aug. 30, 2024.
The dividend, eligible for Canadian income tax purposes, has been steady at its current rate since October 2022 after rising from C$0.0083 in January of that year and features a reasonable payout ratio of 65 per cent.
Besides serving as a source of monthly income to investors, the explorer and producer has distinguished itself as a champion of shareholder value since exiting the pandemic, recently finalizing a reorganization of its assets to become the largest publicly traded energy producer in Alberta’s Clearwater region.
Five reasons to buy Tamarack Valley Energy stock today
- Tamarack Valley has been net income positive over the past three years, generating C$390.51 million in 2021, C$345.20 million in 2022 and C$94.20 million in 2023.
- The company’s total proved plus probable reserves grant it at least eight years of production, not counting decades’ worth of land to be developed across its portfolio, supporting a long-term allocation (slide 19).
- The company’s five-year growth plan through 2029 envisions a robust 15 per cent compound annual growth rate in free funds flow per share through strong production growth, reinvestment and share buybacks (slide 10).
- Net debt is down by 35.7 per cent to C$900 million, net production expenses are down by 8.8 per cent to $9.34 per barrel, and free funds flow is up by more than 250 per cent to C$137 million year-over-year, suggesting that the company is well on its way to meeting its five-year goals.
- The company’s management team knows the energy industry from an operational, leadership and financial perspective like the back of its proverbial hand, positioning it to maximize shareholder value from its long-life assets.
Tamarack Valley set production guidance at 61,000-63,000 barrels of oil per day (boe/d) in 2024 supported by a capital investment of C$390 million-C$440 million. The company achieved average production of 64,143 boe/d in Q2 2024 – exceeding Q1 2024 by more than 3 per cent – with the price of oil holding consistently around its base-case of US$75 per barrel of WTI for 2024 guidance over the past two-and-a-half years.
About Tamarack Valley Energy
Tamarack Valley is an oil and gas exploration and production company committed to creating long-term value for its shareholders through sustainable free funds flow, financial stability and the return of capital.
Tamarack Valley Energy stock (TSX:TVE) is up by 1.75 per cent, trading at C$4.06 per share as of 11:09 am ET. The stock has added 14.37 per cent year-over-year and 129.38 per cent since 2019.
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(Top photo: Tamarack Valley Energy)