Tamarack Valley Energy Announces Q3 2024 Financial Results, Updated Corporate Guidance and Dividend Increase
TSX: TVE
CALGARY, AB, Oct. 31, 2024 /CNW/ - Tamarack Valley Energy Ltd. ("Tamarack" or the "Company") (TSX:TVE) is pleased to announce its unaudited financial and operating results for the three and nine months ended September 30, 2024. Selected financial and operating information should be read with Tamarack's unaudited consolidated financial statements and related management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2024, and 2023, which are available on SEDAR+ at www.sedarplus.ca and on Tamarack's website at www.tamarackvalley.ca.
Q3 2024 Financial and Operational Highlights
Quarterly Production Growth, Production averaged 65,024 boe/d(1), exceeding the high end of prior guidance, reflecting ongoing strength in corporate performance driven by the Clearwater and Charlie Lake drilling programs and waterflood initiatives. Q3/24 Clearwater production increased to 43,300 boe/d(2) reflecting a 15% (19% per share) increase YoY as Tamarack continues to expand its heavy oil operations.
Increasing Funds Flow(3), Delivered Adjusted Funds Flow(3) of $220.4MM ($0.41 per share), and Free Funds Flow(3) of $108.7MM. YTD Tamarack has generated $297.7MM of Free Funds Flow(3) which, on a per share basis, represents a 72% increase YoY(4).
Margin Enhancement, Continued cost reductions and better wellhead realizations are driving stronger margins across the business. Per boe transportation expense demonstrated a 43% improvement YoY. Higher pipeline flows, reduced trucking and a one-time royalty cost recovery all contributed to the improvement. Wellhead price realizations continue to improve due to enhanced blending, sales of CWH oil (Clearwater Heavy) and strong trading differentials driven by the TMX pipeline.
Delivering Returns to Shareholders, Total shareholder return value for first nine months of 2024, was $144.7MM, or ~$0.26/share(5), including base dividends of $61.4MM and share buybacks.
Continued Debt Reduction, Exit net debt of $807.4MM reflected a further strengthening of the balance sheet. Net debt has been reduced by $176.2MM YTD.
Increased Share Buybacks, During Q3/24, Tamarack repurchased 12.3MM common shares. During the first nine months of 2024, the Company bought back and cancelled 4.0% of the year-end 2023 shares outstanding.
Dividend Increase, Tamarack's per share monthly dividend will increase by 2% for the November dividend, payable in December, to $0.01275 from $0.0125 previously, which equates to $0.1530 annually.
Expanded Clearwater Infrastructure Partnership, Added a 13th Indigenous community to the Clearwater Infrastructure Limited Partnership (the "CIP") arrangement. Tamarack transferred an additional $50.8MM of Clearwater assets to the partnership for $43.2MM in cash and retained 15% operated working interest in the assets.
Achieving Success: Plan, Execute & Deliver
Brian Schmidt, President and CEO of Tamarack stated:
"Tamarack's Q3/24 results continue to highlight the quality of the Clearwater and Charlie Lake asset base that has been built over the past three years, and the operational excellence of the team that is driving this performance. Growth in Clearwater production of 15%, relative to the same period in 2023, was achieved while at the same time debt has been materially reduced and enhanced returns to shareholders have been increasing. By demonstrating improved efficiencies, the Company continues to deliver more while spending less."
Q3 2024 Financial & Operating Results
Three months ended
Nine months ended
September 30
2024
2023
% change
2024
2023
% change
($ thousands, except per share amounts)
Oil and natural gas sales, before blending expense
$ 439,435
$ 506,365
(13)
$ 1,294,250
$ 1,284,066
1
Cash provided by operating activities
240,843
199,756
21
631,414
415,645
52
Per share, basic(3)
0.45
0.36
25
1.15
0.75
53
Per share, diluted(3)
0.44
0.36
22
1.15
0.74
55
Adjusted funds flow(3)
220,419
255,199
(14)
627,529
569,723
10
Per share, basic(3)
0.41
0.46
(11)
1.15
1.02
13
Per share, diluted(3)
0.40
0.46
(13)
1.14
1.02
12
Free funds flow(3)
108,688
128,857
(16)
297,693
176,203
69
Per share, basic(3)
0.20
0.23
(13)
0.54
0.32
72
Per share, diluted(3)
0.20
0.23
(14)
0.54
0.31
72
Net income
93,694
8,634
985
155,837
36,874
323
Per share, basic
0.17
0.02
750
0.28
0.07
300
Per share, diluted
0.17
0.02
750
0.28
0.07
300
Net debt(3)
807,401
1,128,030
(28)
807,401
1,128,030
(28)
Investments in oil and natural gas assets
109,032
122,759
(11)
323,594
388,752
(17)
Weighted average shares outstanding (thousands)
Basic
540,990
556,708
(3)
547,074
556,399
(2)
Diluted
545,266
558,569
(2)
551,091
559,958
(2)
Average daily production
Heavy oil (bbls/d)
39,047
35,900
9
37,659
35,229
7
Light oil (bbls/d)
13,203
16,974
(22)
14,422
16,797
(14)
NGL (bbls/d)
2,915
3,623
(20)
2,460
3,795
(35)
Natural gas (mcf/d)
59,154
72,597
(19)
55,162
71,633
(23)
Total (boe/d)
65,024
68,597
(5)
63,735
67,760
(6)
Average sale prices
Heavy oil, net of blending expense ($/bbl)(3)
$ 85.25
$ 92.85
(8)
$ 83.19
$ 76.15
9
Light oil ($/bbl)
97.79
107.83
(9)
96.71
98.30
(2)
NGL ($/bbl)
39.58
41.46
(5)
39.32
41.51
(5)
Natural gas ($/mcf)
0.87
2.60
(67)
1.72
2.84
(39)
Total ($/boe)
73.62
80.22
(8)
74.05
69.29
7
Benchmark pricing
