Tamarack Valley Energy Ltd. · TSX:TVE
Tamarack Valley Energy — Investor Day (June 2025)
37 slides from Tamarack Valley Energy's investor day presentation, June 2025
Slide 1: 2025 Investor Day
TSX: TVE 2025 Investor Day June 2025 Compounding Success
Slide 2: 2025 Investor Day Agenda
2025 Investor Day Agenda Introduction & Overview – Compounding Success Brian Schmidt (AAKAIKKITSTAKII), President & CEO Updated Corporate 5-Year Plan – Growing Return of Capital: Steve Buytels, Chief Financial Officer Charlie Lake – Stacked Resource & Ongoing Innovation: Scott Shimek, VP Production
Slide 3: Corporate and Operational Snapshot
Corporate and Operational Snapshot The Largest Public Clearwater Producer Corporate Overview Ticker Symbol TSX: TVE Shares Outstanding (Basic)1 (MM) 502 1 Share Price (June 20th, 2025) ($/Sh.) $5.03 Market Capitalization1 ($B) $2.5 Q1 2025 Net Debt ($B) $0.8 >90% Enterprise Value ($B) $3.3 Productio
Slide 4: Why Tamarack?
Why Tamarack? Highly Economic Full-Cycle Returns = Growing Return of Capital $70 SMID-Cap WTI Breakeven Pricing (US$/bbl)2 Cover Dividend Top Tier Assets With Large OOIP $60 Cover Maintenance Capital • >11 Bln bbls of OOIP in the Clearwater1 $50 • Proven Clearwater waterflood driving incremental res
Slide 5: Top Tier Primary Assets and Proven Waterflood
Top Tier Primary Assets and Proven Waterflood Leverage Top Tier Primary Production To Establish Long-Term Low Cost Waterflood Primary Payout Periods (Years) Clearwater Oil Under Waterflood By Year (bbl/d) Clearwater Nipisi/West Marten Hills Half-Cycle Oil Plays (Avg. 1.6 yrs) 25,000 Frobisher Dual L
Slide 6: Debt Adj. Production Per Share
2025 vs. 2024 Investor Day Case (2025E-2029E) More Profitable Barrels Driving Outsized Returns To Shareholders DAFFFPS & DAPPS Comparison (2025 vs. 2024)1,2,4 Year-Over-Year Improvements: $2.00 200 DAFFFPS (US$75; 2025) DAFFFPS (US$75; 2024) Debt Adj. Free Funds Flow Per Share • Additional Clearwate
Slide 7: Updated 5-Year Plan (2026E-2030E)
Updated 5-Year Plan (2026E-2030E) Focused Clearwater Growth With Charlie Lake Light Oil Development 5-Year Production Growth CAGR of 3% - 5%1 Shallowing Decline Rate Reduces Sustaining Capital2, Increasing Free Funds • Annual capital: ~$450MM Flow1 For Debt Repayment, Returns, And Growth Optionality
Slide 8: Compounding Per Share Returns
Compounding Per Share Returns Lower Sustaining Capital + Production Growth + Debt Reduction + Share Buybacks = Outsized Per Share Returns Total DAFFFPS & DAPPS Growth of >100%1,2,3 Over 5 Years Cumulative Total Shareholder Return of >100% Over 5 Years (Flat US$75/bbl WTI)4 (Flat US$75/bbl WTI)4 • De
Slide 9: Charlie Lake – Stacked Resource & Ongoing Innovation
Charlie Lake – Stacked Resource & Ongoing Innovation 8
Slide 10: Charlie Lake Steady Growth and Reliable Performance
Charlie Lake Steady Growth and Reliable Performance Largest Charlie Lake Oil Producer Generating Superior Economics $500 Growth & Performance ~$360MM Free NOI Delivered as of YE 2024 Cumulative Free NOI ($MM) • Production Up 51%: 11,800 boe/d1 (Apr. 2021) to 17,780 boe/d2 (Q1/25) $400 • 46% Sustaini
Slide 11: Charlie Lake Growth Opportunity
Charlie Lake Growth Opportunity Increased Inventory and Infrastructure Capacity Provides Optionality Anchor, Build, and Optimize Asset Position Capable of Supporting • Processing capacity expanded by 4x to facilitate growth of the play and enhance reliability 17,000 boe/d for >10 years • Acquired 70
Slide 12: Charlie Lake Stacked Resource and Ongoing Innovation
Charlie Lake Stacked Resource and Ongoing Innovation Multiple Zones Contributing to >10 Years of Inventory Provides Opportunity Top Tier Reservoir Classic Upper Charlie Lk. • Dominant position in the sweet spot of the fairway development area • High oil weighted production (50% - 70%) AAV 2024 Lower
Slide 13: Clearwater – Zeroing In On a Unique Asset
Clearwater – Zeroing In On a Unique Asset 12
Slide 14: Clearwater Expansive Resource
Clearwater Expansive Resource Largest Public Clearwater Producer With >11 Billion Barrels of OOIP1 Seal Brintnell Waterflood Analog • Expansive Resource: >11 billion barrels of OOIP Stacked Pay: OOIP > 50 MMbbls/section Mature heavy oil waterflood estimated on Tamarack lands1 TVE 26 net sections dis
Slide 15: Clearwater Waterflood Expansion
Clearwater Waterflood Expansion Activity Expansion Following Consistent Success Clearwater OOIP by Area1 ~72% of OOIP1 in Areas With 1% McLeod Lake Demonstrated Waterflood 2% 42% 0.2 0.3 Consistent Success Driving 4.9 Marten Hills Waterflood Expansion 12% Nipisi & W. Marten >11 Billion 1.4 Gift Lake
Slide 16: Injection Volume as a Leading Indicator
Injection Volume as a Leading Indicator Correlation of Injection to Production Uplift 6,000 Total Primary Incremental Oil from Waterflood Water Injection 12,000 Clearwater Injection & Production Under Waterflood 35,000 25% 5,000 10,000 30,000 Capital Allocation Geared Towards More Water Injection (b
Slide 17: Clearwater Waterflood Design Concepts
Clearwater Waterflood Design Concepts Multi-Lateral Flexibility Provides Fit-For-Purpose Pattern Designs Stacked Pattern “W” Line Drive Pattern Nipisi Line Drive Pattern Stacked Pattern: Lower injection bench is highly “W” Line Drive Pattern: Optimizing recovery and Nipisi Line Drive Pattern: Effect
Slide 18: Tamarack Waterflood Performance
Tamarack Waterflood Performance Achieving Stabilized Production at Scale Tamarack Oil Producers Under Waterflood Drilled Prior to 2024 4,500 80 Clearwater Waterflood Continues to Exceed Expectations Stabilized Oil Production • In aggregate, pre-2024 wells under waterflood are not declining 4,000 70
Slide 19: Waterflood Reserve Growth
Waterflood Reserve Growth1 Performance Pointing Towards Further Technical Revisions Marten Hills Stacked Pattern Pilot Marten Hills W Pattern Pilot Clearwater Waterfloods Have Outperformed Reserve Forecasts 600 102/15-02-075-25W4/03 600 100/01-11-074-25W4/03 Actuals Actuals • Waterfloods achieving u
Slide 20: Clearwater Waterflood – New Injector Drill
Clearwater Waterflood – New Injector Drill Secondary Recovery Provides Additional Payouts & Reduces Long-Term Sustaining Capital 250 Waterflood Primary Waterflood Economics Waterflood Injector Primary3 – West Marten Type Pattern2 Wedge4 – Internal Total Project 200 “B” Sand Tier I Estimate Oil EUR (
Slide 21: Marten Hills Waterflood – Injector Conversion
Marten Hills Waterflood – Injector Conversion Low-Cost Conversions Provide Substantial Returns 200 Waterflood Conversion Economics Waterflood Primary Primary No Conversion Type Pattern2 Waterflood Wedge1 – 180 Internal Estimate Incremental Oil EUR 850 (Mbbl) 160 Conversion Conversion Cost ($MM) $0.4
Slide 22: Clearwater Reserves and Resources
Clearwater Reserves and Resources Successful Conversion of Resources to Reserves Reflected In Year-Over-Year Growth Clearwater Reserves & Resources YoY Growth1,2 Illustrative Radius For Clearwater Reserves Locations Illustrative Radius For Unconventional Reserves Locations • Much tighter radius for
Slide 23: Heavy Oil Waterflood Benchmark
Heavy Oil Waterflood Benchmark Brintnell Provides Indications of Performance for Long-Life Heavy Oil Waterflood Oil Rate Water Injection 100,000 GOR Water Cut 100 Producing Well Count Water Cut (%) & Producing Well Count (#) 90 Oil and Water Injection Rate (bbl/d) Expected Recovery Drastically 10,00
Slide 24: Clearwater 5-Year Plan
Clearwater 5-Year Plan Waterflood Extends Asset Duration for Decades Clearwater Production & Annual Base Declines (Mboe/d; %) 70 26% 30% Waterflood Provides Unique Combination of Shallowing Declines 60 23% 22% 25% and Production Growth 20% Base Decline Rate (%) Production (Mboe/d) 50 17% 17% 20% 40
Slide 25: Seal: Future Growth Area
Seal: Future Growth Area Continued De-Risking of Stacked Zone Potential Seal OBE Falher1 Top Falher B: 72 bbl/d C2: 106 bbl/d Falher B Fairway Land Position: Falher B • ~30 gross sections (Oil Sands Tenure) Stacked Development Upside: Falher C2 • Bluesky, Falher B, C2, & D2 Sands Falher D2 • ≥70 MMb
Slide 26: Pelican: Future Growth Area
Pelican: Future Growth Area Ongoing De-Risking of Stacked Zone Potential Pelican Land Position: Clwtr D1 HWX Lower Wabiskaw • ~11 gross sections (Oil Sands Tenure) 370 bbls/d oil1 Stacked Development Upside: Clearwater D1 Fairway • Lower Wabiskaw & Clearwater Clwtr C • ≥20 MMbbl OOIP/section CNRL pe
Slide 27: Tailwinds for Canadian Heavy Producers
Tailwinds for Canadian Heavy Producers Tamarack Is In An Excellent Position To Capture Strong Netback Now and In The Future WCS Continues to Trade Exceptionally Strong Since the Start-Up of TMX (~US$9/bbl); WCSB Crude Volumes vs. Operational Export Capacity Expected to Stay Strong in Future Years: 6
Slide 28: Returns to Shareholders & Closing Remarks
Returns to Shareholders & Closing Remarks 27
Slide 29: Return of Capital Framework
Return of Capital Framework Allocating 60% of Free Funds Flow To Shareholders Through Sustainable Dividend & Share Buybacks Net Debt1 ($MM) $900MM – $1,100MM $500MM – $900MM ≤ $500MM & & & & Simplified Framework Net Debt / LTM EBITDA (x) ~ 1.0x Net Debt / EBITDA ~ 1.0x Net Debt / EBITDA ~ 1.0x Net D
Slide 30: Maintaining Balanced Debt Reduction and Shareholder Returns
Maintaining Balanced Debt Reduction and Shareholder Returns Compounding Success On a Per Share Basis Historical Share Buybacks vs. Net Debt $984 (% of 2023YE Share Count; $MM) % of 2023YE Share Count Repurchased (%) • Since the major Clearwater Acquisition (Oct. 2022), Tamarack Has Returned >$2.00 /
Slide 31: Maximizing Long-Term Free Funds Flow Per Share Growth
Maximizing Long-Term Free Funds Flow1 Per Share Growth Leverage Top Tier Asset Quality and Waterflood To Mitigate Declines And Sustaining Capital Compounding Returns to Shareholders Lower Sustaining Capital + Production Growth + Debt Reduction + Long-Term Buybacks = Outsized Per Share Returns DAFFFP
Slide 32: Tamarack Valley Energy – Q&A Session
TAMARACK VALLEY ENERGY Q&A Session 31
Slide 33: Corporate Information
Corporate Information Executive Legal Counsel Brian Schmidt (Aakaikkitstaki) President & Chief Executive Officer Stikeman Elliott LLP Steve Buytels Chief Financial Officer Kevin Screen Chief Operating Officer Banking Syndicate Co-Leads Rocky Baker VP Marketing National Bank of Canada Royal Bank of C
Slide 34: Disclaimers
Disclaimers Forward Looking Statements: Certain information included in this presentation constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend",
Slide 35: Disclaimers (Cont.)
Disclaimers (Cont.) Although Tamarack believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Tamarack can give no assurance that they will prove to be correct. Sinc
Slide 36: Disclaimers (Oil and Gas Advisories Cont.)
Disclaimers (Oil and Gas Advisories Cont.) Short-Term Production Rates: References in this presentation to peak rates, peak monthly rates, initial production rates, average peak production rate for the 30 days after the well is brought onstream (IP30), average peak production rate for the 90 days af
Slide 37: Disclaimers (Oil and Gas Advisories Cont.)
Disclaimers (Oil and Gas Advisories Cont.) Abbreviations AECO the natural gas storage facility located at Suffield, Alberta, connected to TransCanada’s Alberta System These terms have been calculated by management and do not have a standardized meaning and may not be comparable to similar measures b