Yahoo Finance

• Annual Production: 64,331 BOE per day.

• Adjusted Funds Flow: $851 million.

• Capital Expenditure (CapEx): $439 million.

• 2P Reserves Growth: 8% increase.

• Clearwater Production Growth: 10% increase in Q4 '24 vs Q4 '23.

• Charlie Lake Production Growth: 9% increase in Q4 '24 vs Q4 '23.

• Share Buyback: 6% of shares bought back in 2024.

• Dividend Increase: 2% increase in base dividend.

• Total Shareholder Return: 21% in 2024.

• Field Operating Netback: $46.41 per BOE in 2024.

• PDP Recycle Ratio: 3.1 times.

• TPP Recycle Ratio: 4.2 times.

• Clearwater Waterflood Injection Rate: Exited 2024 at over 12,000 barrels per day.

• Warning! GuruFocus has detected 6 Warning Signs with TNEYF.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Tamarack Valley Energy Ltd (TNEYF) achieved a record annual production of 64,331 BOE per day and delivered $851 million of adjusted funds flow in 2024.

• The company successfully increased its 2P reserves by 8% while keeping future development costs flat, demonstrating significant cost reductions.

• Tamarack Valley Energy Ltd (TNEYF) bought back 6% of its shares and increased its base dividend by 2%, resulting in a total shareholder return of 21% in 2024.

• The company has over 2,000 identified Clearwater locations, supporting over 20 years of development at the current pace, ensuring long-term value creation.

• The waterflood program has been successful, achieving F&D costs of $6 per BOE in 2024, and is expected to drive further efficiencies and lower corporate declines.

Negative Points

• There were some one-time items in Q4 that contributed to lower operating costs, which may not be sustainable in 2025.

• The CSV facility's commissioning has been delayed, although Tamarack Valley Energy Ltd (TNEYF) has found alternative ways to maintain production guidance.

• The company faces potential challenges with tariffs and FX fluctuations, which could impact margins.

• Despite the success of the waterflood program, the return on investment is delayed as returns are not realized until the following year.

• There is uncertainty regarding the timing and impact of potential dispositions of non-core assets, which could affect future capital allocation.

Q & A Highlights

Q: What is the plan for dispositions given the success in the Clearwater area? A: Brian Schmidt, CEO, mentioned that while they have disposed of the Penny Southern Alberta property, they are evaluating other non-core assets for potential disposition. This is due to the strong performance in Clearwater and Charlie Lake, which are now the focus areas for capital allocation.