Tamarack Valley Energy Ltd. · TSX:TVE
Tamarack Valley Energy — Investor Presentation (January 2018)
15 slides from Tamarack Valley Energy's investor presentation, Jan 23, 2018
Slide 1: Predictable & Sustainable Per Share Growth
Predictable & Sustainable Per Share Growth January 23, 2018 TVE : TSX www.tamarackvalley.ca 1
Slide 2: 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 3: Disclaimers (continued)
Disclaimers (continued) Oil and Gas Advisories Reserves Disclosure. All reserve references in this presentation are to gross reserves as at the effective date of the applicable evaluation. Gross reserves are Tamarack’s total working interest reserves before the deduction of any royalties and includi
Slide 4: Tamarack Highlights
Tamarack Highlights • Another production beat (Q4/17 at 22,600 boe/d vs. 22,000 boe/d) • Liquids beat 62% vs 59% driven by capital shift to oil weighted drilling • Production beat primarily due to the outperformance of the Viking assets acquired in 2017 • Capital efficiency in 2018 (forecasted at $1
Slide 5: Tamarack Valley – Solid Plan for 2018
Tamarack Valley – Solid Plan for 2018 Budget Principles: Company Snapshot: • Achieve 10-15% debt-adjusted production At January 23, 2018 per share growth (1) Share price $2.95 • Capital spending to match estimated cash flow at oil prices that are currently below Shares outstanding (mm) 229 strip pri
Slide 6: 2017 Delivering on Promises & 2018 H1 Outlook
2017 Delivering on Promises & 2018 H1 Outlook What we said we would accomplish What we accomplished to end of Q4/17: First Half 2018 Objectives in 2017: (Jan 18/17 press release) • Q4/17 averaged 22,600 boe/d (62% liquids) based on • 19,000-20,000 boe/d; exit 21,000 boe/d • H1 2018 average productio
Slide 7: 2018 Areas of Focus
2018 Areas of Focus Est. Q4 2017 Production BOE/D % Liquids Viking light oil 9,990 69% Cardium light oil 9,020 62% ALBERTA SASKATCHEWAN Penny light oil 1,310 73% Other 2,280 45% Total 22,600 62% VIKING OIL Redwater 2018 Budgeted Capital Drills (net) Capex ($ millions) % CARDIUM OIL Edmonton Lloydmin
Slide 8: 2018 Plan
2018 Plan Guidance(1): • Annual production between 22,500 – 23,500 boe/d (64-66% oil & liquids) (10-15% DAPPS growth) • Exit production between 24,000 – 24,500 boe/d (65-67% oil & liquids) (5-8% DAPPS growth) • Capital expenditures $195 to $205 million roughly within funds flow from operations • Est
Slide 9: Improving Operating Netbacks
Improving Operating Netbacks (1) 70 Edm Par prices Operating netbacks (1) 62.84 64.56 60 56.91 51.76 50 Price per boe ($) 40 40% of Edm Par 37% of Edm Par 30 31-32% of Edm Par 25.70 20 23.00 18.19 16.55 10 0 2015 2016 2017e 2018 Budget Note 1: See Disclaimers – “Non-IFRS Measures” …Tamarack has cont
Slide 10: Capital Efficiency ($boepd) – Improving Corporate Performance
Improving Corporate Performance $60,000 Capital Efficiency (1) $50,000 Capital efficiency(1) is stabilizing at a Capital Efficiency* (1) ($boepd) predictable $19,000 to $20,000/boepd and $40,000 Declines remaining comfortably below 40% Corp decline 38% $30,000 Corp decline 34% $26,740 $21,845 Corp d
Slide 11: Current Hedges Internal Report (as at Jan 18, 2018)
Current Hedges Internal Report (as at Jan 18, 2018) Term Hedge Type Volume Pricing % Hedged* January 1, 2018 to March 31, 2018 WTI fixed price 500 bbls/d Cdn $73.59/bbl 38% January 1, 2018 to March 31, 2018 WTI fixed price 4,400 bbls/d US $54.26/bbl April 1, 2018 to June 30, 2018 WTI fixed price 5,2
Slide 12: TVE Veteran – Pressure Support Makes Viking Better
TVE Veteran – Pressure Support Makes Viking Better UPPER VIKING 2017 drills UPPER SST-THICKER, 2018 drills TIGHT PERMEABILITY 2017 infrastructure 2018 infrastructure HAMILTON LAKE HIGHER PERMEABILITY ZONE WATER FLOODED IN 80’S By drilling into the Viking and fracking into the Hamilton Lake, wells be
Slide 13: Tamarack Strategy
Tamarack Strategy • 2017 results have outperformed expectations, driven by positive execution post the acquisition of the Spur Viking • Less Viking decline than anticipated resulting in increase corporate performance (exit production beat, higher netbacks) • The company is demonstrating sustainabili
Slide 14: Appendix
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Slide 15: Tamarack Valley – Key Strategic Guidelines
Tamarack Valley – Key Strategic Guidelines Key Strategy & Principles: • Growth company with a long term focus • Internal processes and skills to grow to a much larger size than current • Multi-play strategy ensures risk management through diversity – remain light oil weighted in the highest rate of
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