Tamarack Valley Energy Expands the Clearwater Infrastructure Partnership, Provides Operational Update and Announces Declaration of Monthly Dividend
Pioneering Partnerships
The Expansion reflects the Company's commitment to the long-term relationship with Indigenous communities where Tamarack is developing its Clearwater assets.
Chief
Councillor
Clearwater Infrastructure Limited Partnership Overview
Under the terms of the definitive agreements in respect of the Expansion (collectively, the "Agreements"), Tamarack transferred an additional
In the previously announced supply study,
Operational Update
Performance results delivered year-to-date have allowed Tamarack to allocate incremental capital within the existing Base Budget to include certain CSV capital spending as noted below. Capital guidance for 2024 is unchanged at $390MM - $440MM(5) with the Company now expected to finish the year at the upper end of the range, including the additional CSV capital. With strong performance demonstrated across our Clearwater and
As part of the total 2024 capital program, Tamarack will drill 4 (4.0 net)
A portion of the proceeds from the Expansion will be directed to the capital program. As a result, the expected shareholder return profile and year-end net debt remain materially unchanged for 2024, with additional capital spending improving free funds flow generation in 2025 and beyond.
Advisors
About
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Peavine Métis Settlement |
Driftpile Cree Nation |
Peerless Trout First Nation |
Duncan's First Nation |
Sawridge First Nation |
East Prairie Métis Settlement |
Sucker Creek First Nation |
Gift |
Swan |
Kapawe'no First Nation |
Whitefish Lake First Nation #459 |
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WWN is a limited partnership of 13 First Nation and Métis settlements located in northern
About
AIOC provided support for the Transaction through a loan guarantee to WWN. AIOC is a provincial
Declaration of Monthly Dividend
Tamarack is also pleased to announce that the Board of Directors has declared a monthly cash dividend on its common shares of
About
Tamarack is an oil and gas exploration and production company committed to creating long-term value for its shareholders through sustainable free funds flow generation, financial stability and the return of capital. The Company has an extensive inventory of low-risk, oil development drilling locations focused primarily on
Reader Advisories
Notes to Press Release
- The boe composition between light oil, heavy oil, natural gas and natural gas liquids is not defined in the Agreements. The makeup of such boe is not a governing factor. Natural gas is converted to barrel of oil equivalent based on a ratio of 6 mcf to 1 barrel.
- The supply study includes all of Tamarack's
Clearwater assets excluding Peavine and Seal. - Production of 61,000 – 63,000 boe/d: 12,800-13,200 bbl/d light and medium oil, 36,600-37,800 bbl/d heavy oil, 2,400-2,500 bbl/d NGL and 54,900-56,700 mcf/d natural gas.
- Production of 2,100 boe/d: 1,350 bbl/d light and medium oil, 200 bbl/d NGL and 3,300 mcf/d natural gas.
- Capital budget includes exploration and development capital, ESG initiatives, facilities land and seismic but excludes ARO, capital associated with the CIP and asset acquisitions and dispositions.
Abbreviations
boe barrels of oil equivalent
boe/d barrels of oil equivalent per day
Disclosure of Oil and Gas Information
Unit Cost Calculation. For the purpose of calculating unit costs, natural gas volumes have been converted to a boe using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with Canadian Securities Administrators' National Instrument 51 101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Boe may be misleading, particularly if used in isolation.
Product Types. References in this press release to "crude oil" or "oil" refers to light, medium and heavy crude oil product types as defined by NI 51-101. References to "NGL" throughout this press release comprise pentane, butane, propane, and ethane, being all NGL as defined by NI 51-101. References to "natural gas" throughout this press release refers to conventional natural gas as defined by NI 51-101.
Forward Looking Information
This press release contains certain forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "guidance", "outlook", "anticipate", "target", "plan", "continue", "intend", "consider", "estimate", "expect", "may", "will", "should", "could" or similar words suggesting future outcomes. More particularly, this press release contains statements concerning: Tamarack's business strategy, objectives, strength and focus; the anticipated benefits of the Expansion and use of proceeds therefrom; future intentions with respect to capital investments, including pursuant to the 2024 capital budget and guidance, including infrastructure (including CSV capital) and waterflood initiatives; expectations regarding commodity prices; the performance characteristics of the Company's oil and natural gas properties and CIP's midstream assets, including expectations that the Company's forecasted volumes will be well in excess of the TOP commitments; the ability of the Company to achieve drilling success consistent with management's expectations; and the future declaration and payment of dividends and the timing and amount thereof. Future dividend payments, if any, and the level thereof, is uncertain, as the Company's dividend policy and the funds available for the payment of dividends from time to time is dependent upon, among other things, free funds flow financial requirements for the Company's operations and the execution of its growth strategy, fluctuations in working capital and the timing and amount of capital expenditures, debt service requirements and other factors beyond the Company's control. Further, the ability of Tamarack to pay dividends will be subject to applicable laws (including the satisfaction of the solvency test contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness, including its credit facility.
The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Tamarack, including those relating to: the business plan of Tamarack and CIP; the Transaction; the timing of and success of future drilling, development and completion activities; the geological characteristics of Tamarack's properties; the characteristics of recently acquired assets; the continued integration of recently acquired assets into Tamarack's operations; prevailing commodity prices, price volatility, price differentials and the actual prices received for the Company's products; the availability and performance of drilling rigs, facilities, pipelines and other oilfield services; the timing of past operations and activities in the planned areas of focus; the drilling, completion and tie-in of wells being completed as planned; the performance of new and existing wells; the application of existing drilling and fracturing techniques; prevailing weather and break-up conditions; royalty regimes and exchange rates; impact of inflation on costs; the application of regulatory and licensing requirements; the continued availability of capital and skilled personnel; the ability to maintain or grow the banking facilities; the accuracy of Tamarack's geological interpretation of its drilling and land opportunities, including the ability of seismic activity to enhance such interpretation; and Tamarack's ability to execute its plans and strategies.
Although management considers these assumptions to be reasonable based on information currently available, undue reliance should not be placed on the forward-looking statements because Tamarack can give no assurances that they may prove to be correct. By their very nature, forward-looking statements are subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: risks with respect to unplanned third party pipeline outages and risks relating to inclement and severe weather events and natural disasters, such as fire, drought and flooding, including in respect of safety, asset integrity and shutting-in production, the risk that future dividend payments are reduced, suspended or cancelled; unforeseen difficulties in integrating of recently acquired assets into Tamarack's operations; incorrect assessments of the value of benefits to be obtained from acquisitions and exploration and development programs; risks associated with the oil and gas industry in general (e.g. operational risks in development, exploration and production; and delays or changes in plans with respect to exploration or development projects or capital expenditures); commodity prices, including the impact of the actions of
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Company's 2024 guidance and expenditures, generating sustainable long-term growth in free funds flow, prospective results of operations and production, corporate decline rate reductions, return of capital, total returns and components thereof, including pro forma the Expansion, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Tamarack's future business operations. Tamarack and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Tamarack disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Tamarack's guidance. The Company's actual results may differ materially from these estimates.
Third Party Information
Certain information contained herein has been obtained from sources prepared by independent industry analysts and third-party sources (including industry publications, surveys and forecasts), including the supply study prepared by
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