Tamarack Valley Energy (TVE) Q1 2025 earnings summary

Executive summary

• Q1 2025 production averaged 67,697 BOE/d, up 9% from Q1 2024, with record oil and liquids output of 57,594 BOE/d, driven by Clearwater waterflood success and Charlie Lake well outperformance.

• Waterflood development advanced, with injection rates over 15,000 bbl/d in Q1 and plans to double to 30,000 bbl/d by year-end, supporting decline mitigation and lower sustaining capital.

• Operational efficiencies and cost reductions, including a 10% drilling performance improvement and ~$5/meter cost savings, increased well count per pad and reduced per-meter costs.

• Shareholder returns increased, with 9% of shares repurchased since January 2024 and over CAD 246 million returned via dividends and buybacks in the last 12 months.

Financial highlights

• Adjusted funds flow reached CAD 226 million (CAD 0.44/share), up 33% year-over-year; free funds flow was CAD 91 million (CAD 0.18/share), up 100% year-over-year.

• Q1 2025 oil and natural gas sales were $444.3MM, up 13% YoY; net income was $64.3MM, reversing a net loss of $32.7MM in Q1 2024.

• Operating netback improved 13% to CAD 47.37/BOE; production expense dropped 23% to CAD 7.76/BOE versus Q1 2024.

Outlook and guidance

• Full-year production expected at the high end of 65,000–67,000 BOE/d, with Q2 similar to Q1, Q3 lower due to turnarounds, and Q4 rebounding.

• 2025 capital spending trending to the low end of CAD 430–450 million guidance, including incremental waterflood investment.

• Guidance remains unchanged despite oil price contraction, supported by sub-$40/bbl WTI break-even and margin improvements.

• Water injection volumes in Clearwater expected to more than double YoY to ~30,000 bbl/d by year-end.

• Capital program is scalable and can be adjusted for market volatility with minimal impact to 2025 production.