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Tamarack Valley Energy Ltd. Announces Sale of Charlie Lake Assets, Transition to Pure Play Clearwater Producer and 25% Dividend Increase
Tamarack Valley Energy Ltd. Announces Sale of Charlie Lake Assets, Transition to Pure Play Clearwater Producer and 25% Dividend
About this update from Tamarack Valley Energy Ltd.
[{"type":"text","content":"TSX: TVECALGARY, AB, May 27, 2026 /CNW/ - Tamarack Valley Energy Ltd. is pleased to announce it has entered into a definitive purchase and sale agreement with an arm's-length counterparty to sell its Charlie Lake assets for cash consideration of $804.0 million, before closing adjustments (the \"Transaction\"). Net proceeds from the divestiture will initially be directed to eliminate Tamarack's net debt(1) and will support primary and secondary development activities across Tamarack's Clearwater fairway driving accelerated production growth.Upon completion of the Transaction, Tamarack will become a pure play Clearwater producer with a strengthened balance sheet, including a net cash(1) position of >$125 million and $1.3 billion of available funding(1), providing for enhanced capital allocation flexibility to support higher total shareholder value. In connection with the Transaction, Tamarack is pleased to announce a 25% increase to its quarterly dividend from $0.04/share to $0.05/share ($0.20/share annualized) which will commence in the third quarter of 2026.The Transaction has an effective date of April 1, 2026 and is expected to close near the end of the second quarter, subject to customary closing conditions and regulatory approvals.HighlightsPortfolio Optimization & Long-Term Accretion – Crystallizes a strong cash return on invested capital(1) of >70% (pre-tax) for the Charlie Lake assets since 2021. Tamarack's go-forward Clearwater focused strategy is expected to drive meaningful accretion of debt-adjusted free funds flow per share in its five-year plan by enhancing corporate profitability through higher margin barrels, lower corporate decline rates and lower reinvestment requirements.Enhanced Total Return to Shareholders & Dividend Increase – The Transaction creates further capital allocation optionality to maximize total returns to shareholders(1) through accelerated growth in the Clearwater, an enhanced dividend and share buybacks.Clearwater Focus & Development Acceleration – Tamarack plans to invest an additional ~$75 million in the Clearwater in H2 2026 to accelerate primary and secondary development activities representing a 10% increase to full-year capital investment guidance. Capital deployment is expected to result in 15% year-over-year production growth within Clearwater properties.Pro-Forma Cash...