Image source: Kanok Sulaiman| Shutterstock

Highlights
  • TVE’s FY23 saw a remarkable 39% surge in average production, driving revenue to CAD 1,422.6 mn
  • Recently, the company has announced a monthly cash dividend of CAD 0.0125 per share
  • TVE anticipates boosting annual average production to 61,000 - 63,000 boe/d in FY 2024

Tamarack Valley Energy Ltd. (TSX: TVE) is a Canadian oil and gas company. The company’s operations are based in the Western Canadian Sedimentary Basin. Its portfolio comprises assets such as Viking Oil, Cardium Oil, and Penny Barons Oil.

In the year ending December 31, 2023, the company experienced a significant 39% increase in average production compared to the prior year. This boost can be attributed primarily to the acquisitions of three corporate Clearwater entities in 2022, along with the company's drilling and development initiatives. Driven by this, the company’s revenue in FY23 improved to CAD 1,422.6 mn against CAD 1,180 mn in pcp.

Furthermore, the company reported a higher gross margin (82.0%) and EBITDA margin (70.1%) in FY23, beating the industry median of 59.7% and 48.1%, respectively.

Recent business update

Due to an unexpected event at a third-party gas plant at Mitsue, Alberta, the company has momentarily shut down nearly 6,200 boe/d of production.

According to the company’s dividend policy, its board of directors has recently announced a monthly cash dividend of CAD 0.0125 per share. This dividend is set to be paid on May 15, 2024. Eligible shareholders for the dividend are those listed as of the close of business on April 30, 2024. Based on the closing price of CAD 3.79 on April 22, 2024, the stock’s dividend yield stands at 3.98%.

Top 10 shareholders

The top ten shareholders of TVE together account for nearly 24.93% of the total shareholding in the company. Ninepoint Partners LP and ARC Financial Corporation hold maximum stake in the company at ~9.10% and ~5.95%, respectively.

Company outlook

TVE looks forward to growing its annual average production to approximately 61,000 - 63,000 barrels of oil equivalent per day (boe/d) in FY 2024.

Stock performance

The share price of TVE has dipped by ~5.25% and surged by ~1.07% over the last 1 week and 1 month, respectively. The stock is trading higher than the average 52-week high and low price of CAD 4.345 and CAD 2.76, respectively.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 22 April 2024. The reference data in this report has been partly sourced from EODHD/Others.