Tamarack Valley Energy


Tamarack is an oil and gas exploration and production company committed to long-term growth and the identification, evaluation and operation of resource plays in the Western Canadian Sedimentary Basin. Tamarack’s strategic direction is focused on two key principles: (i) targeting repeatable and relatively predictable plays that provide long-life reserves; and (ii) using a rigorous, proven modeling process to carefully manage risk and identify opportunities. The Company has an extensive inventory of low-risk, oil development drilling locations focused primarily in the Cardium and Viking fairways in Alberta that are economic over a range of oil and natural gas prices. With this type of portfolio and an experienced and committed management team, Tamarack intends to continue delivering on its strategy to maximize shareholder returns while managing its balance sheet.

Corporate website: http://www.tamarackvalley.ca

  • Investors can step into a 2.5x to 2.8x EV stock that has demonstrated year-on-year increasing free cash flow(1)
  •  Best in class, 1x balance sheet gives optionality • “Oil through the meter” demonstrates that waterflood is working with years of runway
  •  Investing in long-term projects that will ultimately decrease decline rates, increase sustainability and returns
  •  Current shareholders have optionality upside on waterflood that does not appear to be reflected in the current share price; waterflood performance is exceeding      GLJ 2018 bookings by 4x
  •  New low-risk light oil play at Penny could add material amount of quick payout oil inventory
  •  2020 estimated free cash flow(1) has four potential uses: → Continue to fund share buy-backs through NCIB program; allocate ~50% of free cash flow(1)(2) → Continue to invest in high corporate impact Veteran waterflood development → Continue to reduce debt → Pursue tuck-in acquisitions in core areas using balance sheet
  • Stage is set for 2021 record free cash flow(1) (1) See Disclaimer - “Non-IFRS measures” (2) 50% of free cash flow after 2020 budgeted capital, including $50-58MM of waterflood capital, is removed