The TSX and the TSX Venture Exchange have faced significant turbulence this week after a major global sell-off, an unexpected development given the TSX’s recent all-time high. This stark contrast points to the current market volatility, reminding investors of the importance of diligent portfolio management.
Tamarack Valley Energy Ltd. (TSX:TVE, Forum) recently announced its Q2 2024 financial results, marking a significant milestone in the company’s financial strategy. The company reported net debt within the $500 million to $900 million range, advancing it to the next phase of its return of capital framework. This achievement enables the company to allocate up to 60 per cent of free funds flow to base dividends and enhanced returns, up from the previous 40 per cent. The remaining free funds flow will be directed towards ongoing net debt reduction and strategic growth capital allocation.
During Q2 2024, Tamarack achieved average daily production of 64,143 barrels of oil per day (boe/d), exceeding Q1 2024 by more than 3 per cent. This growth reflects strong performance from the Charlie Lake and Clearwater drilling programs. Notably, the Clearwater team successfully restored Nipisi production well ahead of the full recovery of operations at the third-party Mitsue facility.
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Tamarack has reiterated its prior annual production guidance of 61,000 to 63,000 boe/d and capital investment of $390 million to $440 million for 2024. The company plans to allocate approximately 60 per cent of its capital in Q3 2024 and 40 per cent in Q4 2024. Tamarack remains disciplined within its capital program, closely monitoring the status of the CSV Albright sour gas plant onstream timing and commodity prices. At this time, no additional 2024 capital is being allocated to expand the Charlie Lake program, with a status update expected in the fall.
Cannabis company Curaleaf Holdings Inc. (TSX:CURA, Forum) made headlines with a significant leadership change. The board has appointed executive chairman Boris Jordan as chairman and chief executive officer, effective Aug. 16. Current CEO Matt Darin plans to retire but will stay on as a special advisor through the end of the year to ensure a smooth transition.
This announcement coincided with Curaleaf’s quarterly earnings report, which showed a 2 per cent year-over-year increase in revenue to $342 million for Q2. The company also reported an adjusted earnings before interest, tax, depreciation and amortization of $73 million, accounting for 21.3 per cent of revenue, and operating and free cash flow from continuing operations of $30 million and $6 million, respectively.
Closing Wednesday more than 6 per cent higher, Gatekeeper Systems Inc. (TSXV:GSI, Forum) reported solid financial performance. For the three months ended May 31, 2024, the provider of video and data solutions for public transportation and smart cities saw a 9 per cent increase in revenue to $6,457,184, compared with $5,933,125 for the same period last year. For the nine months ended May 31, 2024, revenue was $26,140,481, up 27 per cent from $20,503,956 for the comparable period in the prior year.
In the school segment, Gatekeeper announced $3 million in orders for mobile data collectors and video systems on 1,400 school buses during the quarter. The company is seeing growing interest from school districts in its video analytics software, which helps analyze video data efficiently.
In the transit segment, Gatekeeper secured a contract in Central Oregon to equip 77 transit vehicles with video and data solutions. The company has also garnered significant interest at transit industry trade shows for its product suite, designed to meet the Federal Railroad Administration’s new rule requiring video and crashworthy recording devices on all intercity passenger trains in the United States by 2027.
The recent market volatility should serve as a reminder of the importance of staying informed and making strategic investment decisions. Companies such as Tamarack Valley Energy, Curaleaf Holdings and Gatekeeper Systems are navigating these challenges with noteworthy achievements and strategic adjustments. Investors would be wise to continue their due diligence to ensure their portfolios can weather any storm, capitalizing on opportunities while managing risks in these uncertain times.
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(Top image: Tamarack Valley Energy Ltd.)