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Highlights

  • In Q1 2024, TME's revenue decreased to CAD 272.0 million versus CAD 304.9 million in pcp
  • The company announced a monthly cash dividend of CAD 0.0125 per share, slated to be paid on July 15, 2024
  • The company aims to increase annual average production to around 61,000 - 63,000 boe/d in FY 2024

Tamarack Valley Energy Ltd. (TSX: TVE), a Canada-based oil and gas firm is presently advancing two primary projects in Northern Alberta:

  • Clearwater heavy oil position encompassing Nipisi, South Clearwater, and Marten Hills
  • Charlie Lake light oil position encompassing Wembley, Valhalla, and Pipestone.

The company has a market capitalisation of CAD 2.01 billion.

In the first quarter of 2024, TME’s average production was 62,022 barrels of oil equivalent per day (boe/d). The 9% decrease in production compared to Q1 2023 was largely attributed to the sale of non-core Cardium assets in November 2023. However, this decline was partially offset by new production from continued drilling and development activities in both the Clearwater and Charlie Lake areas. The company posted a net loss of CAD 32.7 million for Q1 2024.

However, in Q1 2024, the company had a higher gross margin of 81.1% and a higher EBITDA margin of 67.5% compared to the industry median of 58.3% and 45.5%, respectively. The company also saw a significant increase in its average sales price compared to pcp. It made progress in reducing its net debt, which is a significant advantage. Moreover, the group demonstrated increased cash flows, underscoring its resilience and flexibility. It invested CAD 128.2 million during the quarter for ongoing development of the Clearwater and Charlie Lake plays.

Recent business update

In Q1 2024, Tamarack delivered CAD 46.4 million to shareholders through base dividends and share buybacks. On 14th June 2024, TME announced a monthly cash dividend of CAD 0.0125 per share. The dividend is planned to be disbursed on July 15, 2024.

Company outlook

The company targets increasing its annual average production to around 61,000 - 63,000 barrels of oil equivalent per day (boe/d) in FY 2024.

Top 10 shareholders

The top 10 shareholders of Tamarack collectively own approximately 22.93% of the total shares. Ninepoint Partners LP holds the largest stake in the company at around 6.38%, followed by ARC Financial Corporation with approximately 5.96%.

Stock performance

TME’s stock has seen gains of approximately 3.08% and 3.67% over the past week and month, respectively. Additionally, it is trading above the average of its 52-week high price of CAD 4.345 and 52-week low price of CAD 2.76.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 24, 2024. The reference data in this report has been partly sourced from EODHD/Others.