Tamarack Valley Energy Ltd. · TSX:TVE
Tamarack Valley Energy — Investor Presentation (November 2020)
18 slides from Tamarack Valley Energy's investor presentation, Nov 10, 2020
Slide 1: Creating Sustainable Value
TVE : TSX Creating Sustainable Value November 2020 See Disclaimers and Forward-Looking Statements attached
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: Corporate Snapshot (TSX: TVE)
Corporate Snapshot (TSX: TVE) Corporate/Market Summary (as at November 10/20) Market capitalization(1) ($mm) $197 Enterprise value(1) ($mm) ~$388 Bank Line ($mm) $275 % Drawn ~69% Tax Pools ($mm)(2) $859 P+P Reserves (mmboe)(3) 112.3 Revised 2020 Capital Budget and Guidance (November 10/20) Full Yea
Slide 5: The Tamarack Advantage
The Tamarack Advantage Duration through Sustainability and Balance Sheet Strength • Defensive yet flexible capital program Balance Sheet Strength • Industry leading balance sheet strength • Ample liquidity/capacity on bank line Continue to Enhancing Advance ESG Sustainability • Strong hedge book/ris
Slide 6: Sustainability at Tamarack
Sustainability at Tamarack Environment, Social & Governance Focus Areas • Reducing greenhouse gas emissions • Understand climate change risks • Innovate to lower energy intensity • Prudently using water where required • Recycle produced water in operations • Innovate to minimize fresh water use • Ef
Slide 7: Sustainability at Tamarack
Sustainability at Tamarack Indigenous Partnerships Emissions & Land Management 2018 GHG Scope 1 + 2 Intensity by Company • Tamarack is committed to the principles of UNDRIP and 0.09 (tCO2e/boe) 0.08 participating in reconciliatory activities 0.07 0.06 • The Kainai First Nation and Tamarack actively
Slide 8: Duration in Dynamic Pricing Environment
Duration in Dynamic Pricing Environment Positive Yields & Low Corporate Breakeven Prices 2021 Debt Adjusted Free Adjusted Funds Flow Yield(1) Minimum Unhedged Oil Price Required to Sustain Production(2) With Adjusted 60% Funds Flow(3) Alone 50% 75 40% 65 $62 WTI Oil Price (US$/bbl) 30% 55 $52 20% 10
Slide 9: 2021 Stay Flat Scenario
2021 Stay Flat Scenario Improving Declines while Maintaining Production BASE WATERFLOOD 2020 DRILLS/ACQUISITIONS 2021 DRILLS 30,000 25,000 20,000 2021 2020 + Acquisitions BOE/D 15,000 Waterflood 10,000 Base 5,000 Base Decline Capital Efficiency ($/boe/d) 2021 22 - 24% $17,000 - $19,000 0 2021 Commod
Slide 10: Risk Management – Current Hedges
Risk Management – Current Hedges 47% (2) Adding stability in a volatile commodity price environment 40-50% (3) Oil price protection 2020 Target oil hedging for 2021 Hedging Summary(1) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Proportion of production hedged (WTI oil price) 47% 40% 20% - - Swap product
Slide 11: Nat. Gas/Liquids-Rich Multi-Zone Drilling Inventory
Nat. Gas/Liquids-Rich Multi-Zone Drilling Inventory Taking advantage of stronger natural gas prices to enhance full cycle economics • ~77 Gross (54 net) high-quality drilling locations identified in the Cardium and Spirit River (Falher & Notikewin) within our West Central core area • Additional oppo
Slide 12: West Central AB – Nat Gas/Liquids-Rich Economics
West Central AB – Nat Gas/Liquids-Rich Economics(1) Falher Type Curve(2) Cardium Type Curve(2) 1,200 1,200 1,000 1,000 800 800 BOE/D BOE/D 600 600 400 400 200 200 0 0 0 6 12 18 24 0 6 12 18 24 MONTHS MONTHS Falher 2-mile Type Curve Economics Cardium 3-mile Type Curve Economics DCET $3.4 MM DCET $4.0
Slide 13: Veteran Waterflood Wedge
Veteran Waterflood Wedge Building sustained long-term, high-netback, low-decline oil production 2020 Wedge Outlook Base WF Actuals 3,500 2019 Capital Efficiency using peak rate of 800 bopd - $34,100/bopd 3,000 2020 Capital Efficiency using peak rate of 1,800 bopd - $19,400/bopd 2,500 2020 Exit = 2,1
Slide 14: East Veteran Waterflood Performance - 200m Patterns
East Veteran Waterflood Performance - 200m Patterns from 2018 and 2020 Average well performance shown from original Sample Waterflood Pattern Performance - 2018 Pilot 2018 pilot patterns (200m Spacing, 12-19 Pad) 250 Oil Rate Per Well (bbl/d) Decline has softened in Q3/20 due to tight VRR Peak Oil R
Slide 15: Veteran Waterflood ONLY – 5+ Year Plan Update
Veteran Waterflood ONLY – 5+ Year Plan Update Building long-term free adjusted funds flow growth Waterflood Production 8,000 • Veteran Waterflood ONLY included in capital / production 7,000 (excludes existing primary base production and future development) 6,000 • Includes incremental production fro
Slide 16: Waterflood Development Runway
Waterflood Development Runway Internal Estimate(2) Waterflood 11% Remaining Primary 4% Recovered to Date 2% Estimated Ultimate Recovery 17% 2018 Drills 2019 Drills 2020 Drills 1) See “Oil and Gas Advisories” 2) Internal estimates and forward-looking Development Summary based on internal management p
Slide 17: Emerging Banff Light Oil Opportunity
Emerging Banff Light Oil Opportunity 4-20 Tamarack Lands Other Producer Lands Open Crown Land 6-30 • ~ 218 net sections perspective in both the Upper and Lower Banff with net pay > 6 meters • Potential to develop ~ 130/273 net (800meter/400meter spacing) 2-mile horizontal well locations • Competitiv
Slide 18: Investment Summary
Investment Summary Track Record of Meeting & Exceeding Estimates Sector Disciplined Operational Improving Leading Capital Execution Sustainability Balance Sheet Allocation Focus on Decreasing ~1.5x on Updated Costs Full-Cycle Corporate Declines Budget Returns Focused 18 w w w . t a m a r a c k v a l
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