Tamarack Valley Energy (TVE) Investor Day 2024 summary

Strategic transformation and asset focus

• Completed a multi-year transformation, consolidating core assets in Clearwater and Charlie Lake, now accounting for over 90% of production and establishing the largest public Clearwater producer.

• Shifted strategy from rapid M&A and land acquisition to optimizing existing assets, emphasizing organic growth, operational efficiency, and capital discipline.

• Asset portfolio features decades of premium inventory, low breakeven costs, and a focus on per-share growth through organic production, buybacks, and selective M&A.

• Enhanced oil recovery (EOR) and waterflood programs are central to long-term production and reserve growth.

• Infrastructure ownership and control have improved reliability, reduced costs, and lowered emissions.

Asset development and operational efficiency

• Clearwater asset holds 8.7 billion barrels of oil in place, over 2,100 drilling locations, and 20+ years of inventory, with 2024 production averaging ~41,000 boe/d.

• Waterflood technology and pilots have demonstrated up to 6x capital payout and >2x primary recovery, supporting significant asset duration and lower sustaining capital.

• Charlie Lake supports 16,000 boe/d for over 10 years, with low break-even costs (<$35/bbl), short paybacks (<1 year), and top-tier well performance.

• Stacked pay, multi-zone development, and advanced well designs drive capital efficiency and high IRRs (>150–200%).

• Continuous improvement in drilling and operational practices has reduced costs and increased efficiency, offsetting inflationary pressures.

Financial guidance and capital allocation

• Five-year plan targets 3–5% annual production growth, 100% growth in free funds flow per share, and 80% growth in debt-adjusted production per share, with capital fixed at ~CAD 450 million/year.

• Cumulative after-tax free funds flow of ~$1.8 billion projected, with annual free funds flow of $325–$425 million and 10–15% annual returns to shareholders.

• Balanced capital allocation: $420 million in base dividends, ~$475 million in debt reduction, and ~$850 million in share buybacks over five years.

• Net debt floor targeted at $500–$600 million, with leverage below 1.0x funds flow at $75/bbl WTI.

• Share buybacks are currently favored over accelerated growth due to higher per-share accretion at current valuations.