Tamarack Valley Energy Ltd. · TSX:TVE
Tamarack Valley Energy — Investor Presentation (July 2021)
22 slides from Tamarack Valley Energy's investor presentation, July 2021
Slide 1: Creating Sustainable Value
TVE : TSX Creating Sustainable Value July 2021 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 (Oil and Gas Advisories)
Disclaimers (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 including any roy
Slide 4: Corporate Snapshot (TSX: TVE)
Corporate Snapshot (TSX: TVE) Corporate/Market Summary Tamarack Market Capitalization(1) ($mm) $1,034 Net Debt(1) ($mm) $506 Charlie Lake Enterprise Value(1) ($mm) $1,540 Light Oil Bank Line Capacity ($mm) $600 Tax Pools ($mm)(2) $1,030 Clearwater Medium Oil P+P Reserves (mmboe)(3) 162.3 2021 Capita
Slide 5: Q2 2021 & Year to Date Highlights
Q2 2021 & Year to Date Highlights • Closed the acquisition of Anegada Oil Corp. on June 1st, 2021 Strategic • Added greater than 350+ locations in the Clearwater and Charlie Lake oil Acquisitions plays Financial • Increased credit facilities to $600 million in Q2 and extended to May 2022 Flexibility
Slide 6: Tamarack – Strategic Free Adjusted Funds Flow Growth
Tamarack – Strategic Free Adjusted Funds Flow(1) Growth Strategic Principles Tactical Execution BALANCE SHEET STRENGTH AND RISK MANAGEMENT Low Leverage & Balance • Estimated 2021 year-end net debt to Q4 annualized adjusted funds flow(1) <1.2x, decreasing to Sheet Strength <0.5x at year-end 2022 and
Slide 7: Leading WCSB Play Benchmarking
7 IRR (%) PV-10 Breakeven WTI @ 20:1 Source: Enverus HH:WTI ($/bbl) 200% 600% 0% 400% $0 $20 $60 $80 $40 Clearwater - Marten Hills TVE Lwr Charlie 571% $30 Lake TVE Lower Charlie Lake Midland 459% $33 Montney - Progress- Gordondale Delaware $35 TVE Nipisi Clearwater TVE Nipisi $36 376% 353% Clearwat
Slide 8: Successfully Executing on Acquisition Strategy
Successfully Executing on Acquisition Strategy Improving sustainability and resiliency, while enhancing free adjusted funds flow(1) profile Charlie Lake West Central Alberta Clearwater Sparky / Clearwater Light Oil Total July 2020 December 2020 March 2021 June 2021 Acquisition Overview Purchase Pric
Slide 9: Capital Allocation Optionality Delivers Sustainability
Capital Allocation Optionality Delivers Sustainability Portfolio that can deliver near-term and long-term free adjusted funds flow(1) Sustaining Capital(1) Waterflood Management Economic Growth Modest Growth Highly Economic Inventory that Sustains Low Decline, Meaningful Production While Generating
Slide 10: Meaningful Free Adjusted Funds Flow from all Assets
Meaningful Free Adjusted Funds Flow(1) from all Assets Maintenance Capex FAFF $55 WTI FAFF $65 WTI $180 $160 $140 $30 $23 $120 Run Rate NOI(1) ($MM) $100 $76 $67 $80 $22 $60 $12 $34 $40 $30 $50 $55 $20 $35 $20 $0 Waterflood Charlie Lake Clearwater Cardium Additional Pricing Assumptions: AECO at $2.3
Slide 11: Highly Economic Lower Charlie Lake Light Oil Locations
Highly Economic Lower Charlie Lake Light Oil Locations 2 Mile Lateral Length Normalized Well Performance(1) 200 Cumulative Production (Mbbl) ~45% of wells ≥ 2 miles(3) 150 T10 T9 100 T8 T7 50 102/16-22-073-07W6 IP30 Rate(2): 0 0 4 8 12 16 1,048 boe/d(3) Months (650 bopd) Payout Sensitivity Flat Pric
Slide 12: Tamarack's Clearwater Assets
Tamarack’s Clearwater Assets 400+ identified locations(1) in the Greater Nipisi area and 100+ identified locations(1) in the Jarvie area Payout Sensitivity Flat Pricing 15-29 West 14-26 West Stepout Stepout 0.8 ~300b/d ~240b/d 0.7 5-13 Marten 0.6 Current Results Payout (Years) Stepout • ~118b/d 0.5
Slide 13: Clearwater Waterflood Potential
Clearwater Waterflood Potential Tamarack will develop the play with a long-term view to the application of EOR Nipisi/Marten Hills EOR Pilots Evolution of Waterflooding Criteria/Applicability Spur Deltastream Headwater Spur • Other companies have initiated EOR pilot projects (both waterflood and pol
Slide 14: Tamarack's Waterflood Assets
Tamarack’s Waterflood Assets Improving corporate declines with increasing exposure to assets under waterflood Total Area Prod. Under Total Asset Est. Recovery Est. Ultimate Asset Current Initiatives Prod. Waterflood OOIP(1) to Date(2) Recovery(2) Veteran Viking Adding ~8 new injection patterns in Ve
Slide 15: Tamarack's Waterflood Assets
Tamarack’s Waterflood Assets Improving corporate declines with increasing exposure to assets under waterflood Net Waterflooded Oil – Includes 2021 Capital Program Production (bopd) Penny Barons Veteran Viking Nipisi Slave Point Eyehill Sparky 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Jan-2020 Apr-
Slide 16: Sustainability at Tamarack
Sustainability at Tamarack Environment, Social & Governance Focus Areas • Reduce greenhouse gas emissions • Understand climate change risks • Innovate to lower energy intensity • Prudently use water where required • Recycle produced water in operations • Innovate to minimize freshwater use • Effecti
Slide 17: Sustainability at Tamarack
Sustainability at Tamarack Indigenous Partnerships Emissions & Land Management • Tamarack is committed to the principles of UNDRIP and participating in 2019 GHG Scope 1 + 2 Intensity by Company reconciliatory activities (tCO2e/boe) 0.10 • The Kainai First Nation and Tamarack actively partner to crea
Slide 18: Investment Summary
Investment Summary Track record of meeting and exceeding estimates Sustainable Returns Focused Strategy to Grow Production and Free Adjusted Funds Flow(1) per Share Management team that has demonstrated its ability to execute and capitalize on opportunities Stable Base Economic Oil Balance Sheet Lea
Slide 19: APPENDIX
APPENDIX 19 w w w . t a m a r a c k v a l l e y. c a 19
Slide 20: Risk Management – Current Hedges
Risk Management – Current Hedges(1) 58% Enhancing certainty with flexibility to capture upside value (2),(3) 60% Oil price protection in 2021 Target oil hedging for H2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 WTI Put Oil Hedge Coverage(3) Volume (bbls/d) 3,250 4,750 9,250 5,500 Average Put/Premium (USD/
Slide 21: Notes
Notes Page 4 1. See Disclaimers – “Non-IFRS Measures” 2. Estimated as at December 31, 2020, adjusted for the previously announced March acquisitions and June Anegada Acquisition 3. Tamarack Valley based on the independent reserves evaluation prepared by GLJ Ltd. dated February 8, 2021 and effective
Slide 22: Notes
Notes Page 11 1. Lateral length normalized to 3,000m, based on a 1:1 ratio of lateral length to well performance 2. See “Oil and Gas Advisories” 3. Comprised of 650 bbl/d light and medium oil, 74 bbl/d NGL and 1,942 mcf/d natural gas 4. Comprised of 1,157 bbl/d light and medium oil, 38 bbl/d NGL and
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