Tamarack Valley Energy (TVE) investor relations material

Deal rationale and strategic fit

• Merger creates the largest publicly pure play Clearwater producer in Canada, forming a premier North American oil producer with a unique Clearwater focus and the largest production base.

• Combined land base covers over 1,500 sections with more than 3,000 drilling locations and 300 million barrels of proved and probable reserves.

• The combined entity will have a highly contiguous core land position and significant depth of quality inventory in Marten Hills, Nipisi, and Marten Hills West.

• Transaction aims to maximize shareholder value through increased size, scale, and sustainable returns by bringing together complementary asset bases.

Financial terms and conditions

• All-stock transaction valued at CAD 10 billion (or $10 billion), with a one-for-one share exchange ratio; Headwater shareholders receive 1.0 Tamarack share per Headwater share.

• Tamarack shareholders will own 66.5% and Headwater shareholders 33.5% of the combined company post-closing.

• Tamarack will issue 237.8 million shares; combined company will have over CAD 1.2 billion in available funding, including an undrawn credit facility of CAD 875 million.

• Tamarack will increase its quarterly dividend by 20% to $0.06 per share, annualized at $0.24, starting December 2026, contingent on deal closure.

Synergies and expected cost savings

• Run-rate synergies expected to be at least CAD 50 million (or $50 million) per year, with potential to exceed $350 million during the development plan.

• Synergies stem from operational integration, marketing, corporate office consolidation, and streamlined exploration.

• Longer-term synergies anticipated from overlapping infrastructure and optimized waterflood and egress networks.