Tamarack Valley Energy Announces Q2 Results, Record Quarterly Production, Positive Guidance Update; Strategic Clearwater Tuck-in Acquisition and Executive Appointment
Press Release
Calgary, Alberta – July 30, 2025 – Tamarack Valley Energy Ltd. (“Tamarack” or the “Company”) (TSX: TVE) is pleased to announce its financial and operating results for the three, and six months ended June 30, 2025. Selected financial and operating information should be read with Tamarack’s unaudited consolidated financial statements and related management’s discussion and analysis (“MD&A”) for the three, and six months ended June 30, 2025, which are available on SEDAR+ at www.sedarplus.ca and on Tamarack’s website at www.tamarackvalley.ca
Production achieved another record high in Q2/25, averaging 70,260 boe/d(1) and representing a 19% YoY increase on a per share basis. This, combined with improved costs and capital efficiencies, drove strong free funds flow (“FFF”)(2) generation. In conjunction with share buybacks, Tamarack is compounding per share value creation for shareholders.
Overall program success continues to drive production higher with capital trending lower resulting in a positive update to Tamarack’s corporate guidance. Reflecting improved efficiencies, full year 2025 production guidance is increased by 3% to 67,000 – 69,000 boe/d(3) and capital spending is reduced by 7%. At the same time, strength in funds flow is supported by lower net production and interest expenses with guidance demonstrating savings of 5% and 6% respectively.
Q2 2025 Financial and Operational Highlights
⦁ Production Outperformance – Q2/25 production averaged 70,260 boe/d(1), highlighted by 4% growth in heavy oil volumes vs. Q1/25, reflecting ongoing development and waterflood success.
⦁ Free Funds Flow(2) Per Share Generation – Delivered Q2/25 adjusted funds flow (“AFF”)(2) of $197MM or $0.39/share and FFF(2) of $133MM or $0.26/share.
⦁ Increased Shareholder Returns – Bought back 10.1MM common shares in Q2/25, year-to-date Tamarack has repurchased 22.6MM common shares, or 4% of the share float at 2024 YE, at an average price of ~$4.33/share. Together with declared dividends, Tamarack returned $137MM to shareholders in H1/25.
⦁ Capital Investment and Efficiencies – Capital expenditures of $63MM reflected strong production performance and continued capital efficiency gains. During the quarter Tamarack drilled 19 Clearwater heavy oil wells and 11 water injection wells.
⦁ Balance Sheet Strength – Tamarack’s Q2/25 net debt(2) is 19% lower than Q2/24. On a 12-month trailing basis the net debt to EBITDA(2) multiple at the end of the quarter was 0.7x.
⦁ Positive 2025 Guidance Updates – Reflecting success of the development and waterflood programs along with ongoing capital efficiency gains, net of acquisitions and divestment, the Company is increasing 2025 production guidance by 3% and reducing the capital exploration and development outlook by 7%.
⦁ Successful Bond Offering Enhances Capital Structure – On July 25, 2025, Tamarack completed a $325MM offering of 6.875%, 5-year term unsecured senior notes. A portion of the net proceeds were used to redeem ~$100MM of the Company’s outstanding $300MM 7.25% senior unsecured notes with the balance applied to the existing covenant-based facility.
⦁ Strategic Clearwater Consolidation – On July 29, 2025, Tamarack closed the $51.5MM corporate acquisition of a private company (“PrivateCo”), adding 1,100 bbl/d of Clearwater production through the balance of 2025, and >114 net sections of Clearwater lands.
Q2 2025 Financial & Operating Results
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