Tamarack Valley Energy (TVE) Q1 2025 earnings summary

Executive summary

• Q1 2025 production reached a record 67,697 BOE/d, up 9% year-over-year, led by Clearwater waterflood and Charlie Lake 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.

• Operational efficiencies and cost reductions increased well count per pad, reduced per-meter costs, and drove higher value.

• 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.

• Net income of $64.3M in Q1 2025, reversing a net loss of $32.7M in Q1 2024.

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.

• Oil and gas sales increased 13% to $444.3M; realized price per BOE up 5% to $72.92.

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

• Net debt to EBITDA fell to 0.7x, with over CAD 400 million in credit capacity at quarter-end.

• Net debt reduced to $768.6M, down 22% year-over-year.

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.

• Free funds flow expected to exceed budget, supporting further shareholder returns and debt reduction.

• Hedging program protects ~36% of oil production with downside floor and upside participation.