Tamarack Valley Energy Ltd. · TSX:TVE
Tamarack Valley Energy — World Outlook Financial Conference 2025
40 slides from Tamarack Valley Energy's conference presentation, February 2025
Slide 1: Creating Sustainable Value
TSX: TVE TSX: TVE Tamarack Valley Energy CREATING SUSTAINABLE VALUE Clearwater Sites at West Marten Hills February 2025 World Outlook Financial Conference
Slide 2: Corporate and Operational Snapshot
Corporate and Operational Snapshot The Largest Public Clearwater Producer Corporate Overview Ticker Symbol TSX: TVE 1 Shares Outstanding (Basic) (MM) 523 Market Capitalization1 ($MM) $2,542 Q3 2024 Net Debt ($MM) $807 Enterprise Value ($MM) $3,349 Annual Base Dividend1 ($/Sh.) $0.153 Implied Annual
Slide 3: Maximizing Free Funds Flow Per Share Growth
Maximizing Free Funds Flow1 Per Share Growth Balanced Growth Optionality ✓ Commitment to Returns: Allocating 60% of Free Funds Flow ✓ 8.7 Bln bbls of OOIP2 in the ✓ Premium netbacks, higher price ✓ Leveraging Scale and Quality To Deliver ✓ Waterflood mitigating Clearwater realization and lower cost
Slide 4: Clearwater Resources Support Long-Term Development
Clearwater Resources Support Long-Term Development Top Tier Resource With Considerable Scale To Support Future Growth North American Oil Plays: Half-Cycle and 2x Payout Period1 2023 Clearwater Reserves & Resources2,3 350 Clearwater Nipisi/West Marten Hills Frobisher Dual Leg SK Mississippian Convent
Slide 5: Transformation To The Largest Public Clearwater Producer
Transformation To The Largest Public Clearwater Producer Portfolio Has A Significant Depth of Premium Inventory To Deliver Long-Term Returns For Shareholders 2020 Land Base 2025 Land Base Clearwater ~44.0 Mboe/d3 Redwater Charlie Lake Viking ~17.0 Mboe/d4 >90% of Corporate Production In Clearwater a
Slide 6: Road Map For Value Generation
Road Map For Value Generation Strategic Transformation Complete... Consistent & Predictable Path Forward to Grow Shareholder Returns Phase I Phase II Phase III Asset Transformation Debt Paydown & Growth Completed in 2023 Return of Capital Optionality ~ In Progress ~ ~ Future Outlook ~ • Total retu
Slide 7: Return of Capital Framework
Return of Capital Framework Allocating 60% of Free Funds Flow To Shareholders Through Sustainable Dividend & Share Buybacks Within 5 Yr. Plan Net Debt1 ($MM) $900MM – $1,100MM $500MM – $900MM ≤ $500MM & & & & 2024 Share Buybacks of ~34 MM Shares2 Net Debt / LTM EBITDA (x) ~ 1.0x Net Debt / EBITDA ~
Slide 8: West Nipisi Waterflood Area
West Nipisi Waterflood Area Waterflood Stabilizing Production With Reduced Drilling Activity • Primary development commenced in 2019 and ramped up through 2022 TVE West Nipisi Waterflood Area 6,000 • Pilot waterflood commenced in 2022 with broad implementation in 2023-24 5,000 • Oil production has s
Slide 9: Delivering Returns and Value to Shareholders
Delivering Returns and Value to Shareholders Equity Investors Provided with ~$1.65/share of Cumulative Return Value From Multiple Sources 2022-2024 Annual Value Contribution for Equity Investors $1.00 Debt Reduction $0.82 Q4/22 – Q4/23 net debt reduced by $373MM (~$0.67/share of value1) $0.80 Q4/23
Slide 10: Delivering Outsized Returns
Delivering Outsized Returns Leveraging Scale & Asset Quality To Deliver Sustainable Long-Term Returns Per Share Asset Transformation Complete: Focused, Large Scale, Highly Economic Asset Portfolio Rate of Change: Lower Costs and Enhanced Capital Efficiencies Drives Higher Margins Balanced Growth Opt
Slide 11: Appendix: Financial
hs tamarack valley eNercy Appendix: Financial 10
Slide 12: Driving Per Share Growth
Driving Per Share Growth Deleveraging & Buybacks Drive Per Share Value Debt Adj. Prod. / Sh. & Cum. ∆ In Debt. Adj. Funds Flow / Sh. (boe/d / MM shares; %)3 90 Debt Adjusted Production Per Share ("DAPPS") 50% Cum. ∆ In D.A. Adj. Funds Flow / Sh. (% ) Cumulative ∆ In Adj. Funds Flow Per Debt Adj. Sha
Slide 13: 2025 Annual Corporate Guidance
2025 Annual Corporate Guidance Developing Expanded Clearwater Assets & Investing To Enhance Margins 2025 Budget Pricing WTI (US$/bbl) $70.00 2025 Capital Program ($MM) WTI / MSW Diff. (US$/bbl) ($4.00) $500 WTI / WCS Diff. (US$/bbl) ($14.00) $450 AECO ($/GJ) $2.00 FX (US$/C$) 1.35 $400 $350 2025 Ann
Slide 14: 2025 Free Funds Flow Allocation
2025 Free Funds Flow Allocation Low Breakeven Drives Resiliency, Increasing Returns to Shareholders 2025 Free Funds Flow Allocation ($MM) Production Growth & Disciplined Capital Allocation ~4% Annual Production Growth; ~9% Growth Per Share @ Budget Pricing1 $1,000 $900 US$85/bbl WTI $800 Strong Free
Slide 15: 5-Year Plan
5-Year Plan Striking Balance Between Production Growth & Shallowing Declines (EOR) For Ultimate Value Creation Annual Per Share Growth (FFFPS & DAPPS Growth) 2025 Budget Reflects An Out Performance On Both Capital and $1.50 120% Production vs. 5-Year Plan That Was Established In June 2024 4 Debt Adj
Slide 16: Waterflood Mitigates Decline Rates & Reduces Sustaining Capital
Waterflood Mitigates Decline Rates & Reduces Sustaining Capital Reducing Sustaining Capital Drives Free Funds Flow1 2025 Budget Reflects An Out Performance On Both Capital and 5 Yr. Plan Capex & Production ($MM & Mboe/d) Production vs. 5-Year Plan That Was Established In June 2024 $800 75 Growth Cap
Slide 17: Five Year Plan Compounding Per Share Returns
Five Year Plan Compounding Per Share Returns Production Growth + Lowering Sustaining Capital + Long Term Buybacks = Outsized Per Share Returns Total Shareholder Value of ~$1.8B or ~$3.25/Sh. Including Debt Compounding Growth For Production and Share Buyback Totals ~70% Reduction Over Next 5 Years at
Slide 18: Canadian Heavy Oil Differential Narrowing
Canadian Heavy Oil Differential Narrowing WCS Differential Tighter Due to TMX WCS Differential (US$/bbl) Tamarack Realized Heavy Oil Price (C$/bbl) 2021 2022 2023 2024 2025 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ($5) $2 Historical
Slide 19: Risk Management
Risk Management1 Enhancing Certainty With Flexibility To Capture Upside Value Percentage of Volume Hedged1 Weighted Average WTI Hedge Price1 60% Hedging Coverage Supports 50,000 $100 Sustaining Capital & Base Dividend $86.60 49% 45,000 $84.50 $82.10 $80.40 48% 50% 40,000 $80 Production Hedged (Net o
Slide 20: Risk Management
Risk Management1 Enhancing Certainty With Flexibility To Capture Upside Value Oil Hedges Units Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 FX Hedges Units Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 WTI Collars C$/US$ Collars Volume bbl/d 21,000 21,000 17,500 6,500 - - Notational US$MM/Month
Slide 21: Appendix: Assets
hs tamarack valley eNercy Appendix: Assets 20
Slide 22: Largest Public Clearwater Producer
Largest Public Clearwater Producer Established Extensive Exposure Through The Heart of The Clearwater Fairway • Extensive holdings across the Clearwater fairway; 676 net sections of land1 Scale • 8.7 billion barrels of OOIP2 in the Clearwater • TPP reserve life index of ~8 years3 & total resource si
Slide 23: Clearwater Economics: Primary Recovery
Clearwater Economics: Primary Recovery Multiple Payouts Compound Free Funds Flow1 Growth West Marten “B” Sand West Marten “C” Sand 250 250 Booked Type Well2,3 11,200m Lateral – Tier I Booked Type Well2,3 11,200m Lateral 200 IP30 (bopd) 232 200 IP30 (bopd) 184 Oil Production (bbl/d) Oil Production (b
Slide 24: Clearwater Waterflood
Clearwater Waterflood Secondary Recovery Provides Additional Payouts & Reduces Long Term Sustaining Capital 250 Waterflood Primary Waterflood Economics Primary3 – West Marten Waterflood Wedge4 – 200 Type Pattern2 “B” Sand Tier I Internal Estimate Total Project Oil EUR (Mbbl) 200 200 400 Cost per Pat
Slide 25: Clearwater Waterflood Progression
Clearwater Waterflood Progression Advancing Secondary Recovery To Drive Incremental Resource Capture Clearwater Injection & Production Under Waterflood EUR’s > 2x Primary Recovery 14,000 14% Demonstrated waterflood success across Clearwater fairway 12,000 12% Mitigating Decline % Oil under Waterfloo
Slide 26: Marten Hills: Maximizing OOIP Recovery With Waterflood
Marten Hills: Maximizing OOIP Recovery With Waterflood Strong Positive Correlation Between Injectivity and Oil Response Across the Clearwater Fairway TVE 15-02 EOR Pilot Marten Hills Started Sept 2021; Increased injection to 1,000 bwpd; oil rate increased at TVE 102/16-2 Injector offsetting producer
Slide 27: Marten Hills Waterflood
Marten Hills Waterflood Observing Success In Both Pattern Configurations Marten Hills Stacked Pattern 500 1200 Stacked Pattern “W” Flood Pattern Injection / GOR (bwpd / scf/bbl) • Lower injection bench is highly effective in 375 900 • Optimizing recovery and injectivity while overcoming homogenous r
Slide 28: Nipisi & West Marten: Enhancing Inventory
Nipisi & West Marten: Enhancing Inventory Focusing On Top Tier Lands In Support of Long-Term Sustainable Development GRS(GAPI) 0 150 Stacked Potential: TVE 08-32 JV Pad 2023 TVE Nipisi Pipeline to TVE 2023 2-22 and 12-22 Pad Building on success with CLWTR C B Sand 180 - 215 bopd New 3rd Party Termin
Slide 29: West Marten: Stacked Pay Continuing To Outperform
West Marten: Stacked Pay Continuing To Outperform Deltastream Legacy Lands Generating Free Funds Flow1 With Multiple Quick Payouts West Marten 2023 Drills2: Primary Recovery 400 ‘B’ Sand (23 Wells) Including YE 2023 P+PDP Forecasts4 350 Booked Type Wells4,5 Clearwater ‘B’ Sand (Tier I) Clearwater ‘C
Slide 30: West Marten: Leveraging Waterflood Learnings from Nipisi
West Marten: Leveraging Waterflood Learnings from Nipisi Excellent Primary Results In Stacked Sands With Waterflood Upside West Marten • Stacked Resource: Total B and C sand OOIP upwards of 50 MMbbl/section across >35 sections in West Marten • Deliverability: Excellent results in both sands has resu
Slide 31: Nipisi 'B' Sand Pilot Exhibits Exceptional Response
Nipisi ‘B’ Sand Pilot Exhibits Exceptional Response Waterflood Success Indicative of Significant Asset Duration Nipisi 102/13-19-076-07W5 Pilot 100/14-19-076-07W5/00 102/13-19-076-07W5/00 WF Primary Curve 600 Injection Start 500 400 Quick Response: Waterflood pilot substantially Oil (bbl/d) 300 outp
Slide 32: South Clearwater: Substantial Delineated Inventory
South Clearwater: Substantial Delineated Inventory Scalable Development Provides Capital Deployment Flexibility Across the Asset Portfolio South Clearwater South • Infrastructure: Commissioned Rochester gas plant Q1 2024 Clearwater TVE 2024 Fan 125-196 bopd 2022 Fan Well TVE 2022 Jarvie Drills • Wel
Slide 33: South Clearwater: Fan Well Design Case Study
South Clearwater: Fan Well Design Case Study Improving Capital Efficiencies Through Reduced Infrastructure and Increased Recovery Per Well Reduced Surface Footprint Lower Infrastructure Costs Higher Recovery Per Well Efficient Delineation of Pool Edges Previous Development Plan1,2 16 Wells – 3 Surfa
Slide 34: High Quality Charlie Lake Light Oil
High Quality Charlie Lake Light Oil Optionality With Inventory Inventory • Top tier light oil reservoir continues to result in exceptional well performance • Inventory supports 16,000 boe/d1 for >10 years; multi-zone potential • Extensive holdings across the Charlie Lake fairway; 244 net sections of
Slide 35: Charlie Lake: Superior Economics in the Heart of the Play
Charlie Lake: Superior Economics in the Heart of the Play Well Design and Program Execution Driving Continued Sustained Outperformance In Core Areas 250 Tamarack’s 2024 Wembley Wells Are 10% Higher Than Cumulative Production1 (Mboe) 200 Historical Area Average Tamarack Wembley 150 2024 Onstreams (x6
Slide 36: 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 37: 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 38: 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 39: 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 40: Disclaimers (Oil and Gas Advisories Cont.)
Disclaimers (Oil and Gas Advisories Cont.) Third Party Information: Certain information contained in this presentation has been obtained from published sources prepared by independent industry analysts and third-party sources (including industry publications, surveys and forecasts). While such infor
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