Tamarack Valley Energy Achieves Record Funds Flow in 2024 & Provides Operational Update
Press Release
Calgary, Alberta – February 25, 2025 – Tamarack Valley Energy Ltd. (“Tamarack” or the “Company”) (TSX: TVE) is pleased to announce its financial and operating results for the three months and year ended December 31, 2024. Selected financial and operating information should be read with Tamarack’s audited annual consolidated financial statements and related management’s discussion and analysis (“MD&A”) for the three and twelve months ended December 31, 2024, and the Company’s Annual Information Form (“AIF”) for the year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca and on Tamarack’s website at www.tamarackvalley.ca.
Tamarack closed out 2024 with annual production of 64,331 boe/d(1) exceeding expectations and adjusted funds flow (“AFF”)(2) of $851MM achieving a new corporate record. Through continuous improvement initiatives and execution of the business plan, the Company is realizing improved price margins, cost structure and asset productivity, all of which contribute to enhanced profitability. The Company drove total return to shareholders of ~21% on a per share basis during 2024. This was achieved through the buyback of ~6% of 2023 YE shares outstanding, a base dividend increase, the reduction of debt, and production growth in its core Clearwater and Charlie Lake plays.
2024 Financial and Operational Highlights
⦁ Increased Free Funds Flow(2) Generation – Delivered Q4/24 and full year AFF of $223MM and $851MM respectively. Including capital spending Tamarack generated Q4/24 and full year free funds flow (“FFF”)(2) of $89MM and $387MM respectively. Annual FFF represented a 65% YoY increase, which was directed to dividends, enhanced returns, and debt repayment.
⦁ Enhanced Returns Execution – Bought back 33.9MM common shares in 2024, including 11.9MM in Q4/24, representing a 6% reduction relative to the 2023 YE shares outstanding. This provides for per share accretion on key metrics including production, reserves, AFF(2) and FFF(2). Tamarack returned over $215MM to shareholders in 2024, through dividends and share buybacks.
⦁ Net Debt Reduction – Balance sheet strength was enhanced through lower net debt(2) which was reduced by $208MM during the year to $775MM at December 31, 2024, representing 0.8x debt to EBITDA(2) multiple.
⦁ Production Performance – During Q4/24, production averaged 66,104 boe/d(3), and was highlighted by YoY increases of 10% and 9% in the Clearwater and Charlie Lake respectively. Full year average production of 64,331 boe/d(1) included 6% growth in heavy oil volumes, reflecting continued success in the Clearwater.
⦁ Lower Operating Costs – Production expense of $8.60/boe for 2024 demonstrated a 9% YoY improvement, reflecting core area production growth, program efficiencies, and disposition of higher cost assets.
⦁ Heavy Oil Margin Improvements – The Company’s heavy oil price differential in 2024, net of transportation expense(2) relative to the Hardisty Heavy benchmark price, improved by 45% YoY.
⦁ Capital Investment Efficiencies – Capital expenditures of $439MM(4) were inline with prior 2024 guidance. Efficient annual spending allowed for the drilling of four additional Charlie Lake wells (which were brought on-stream in Q1/25) without an increase to the 2024 annual capital plan.
⦁ Reserves Growth & Production Replacement – Bookings at 2024 YE increased across all categories by 8% – 9% with Proved Developed Producing (“PDP”), Total Proved (“TP”) and Total Proved Plus Probable
(“TPP”) increases replacing 127%, 150% and 179% of production respectively (prior to dispositions).
⦁ Low F&D Costs Driving Strong Recycle Ratios – Clearwater and Charlie Lake results achieved PDP, TP, and TPP F&D(5) costs, including changes in FDC(5), of $15.20/boe, $14.16/boe and $10.94/boe respectively. Coupled with an annual field operating netback(2) of $46.41/boe Tamarack achieved PDP, TP, and TPP recycle ratios(2) of 3.1x, 3.3x and 4.2x respectively, representing the strongest recycle ratios in Tamarack’s history.
2024 Financial & Operating Results
IBF4
