Tamarack Valley Energy (TVE) Investor Day 2024 summary

Strategic transformation and asset portfolio

• Completed a multi-year transformation, consolidating core assets in Clearwater and Charlie Lake, now accounting for over 90% of production and establishing the company as the largest public Clearwater producer.

• Shifted from rapid M&A to optimizing existing assets, leveraging over 2,100 drilling locations and decades of premium inventory for long-term per-share value creation.

• Enhanced oil recovery (EOR) and waterflood programs are central to extending asset life, boosting recovery, and supporting sustainable growth.

• Infrastructure ownership and operational efficiencies have reduced costs, improved reliability, and lowered emissions.

• 2024 production guidance is 61,000–63,000 boe/d with 84–86% liquids weighting and a capital budget of $390–$440 million.

Clearwater and Charlie Lake asset performance

• Clearwater holds 8.7 billion barrels of oil in place, with over 2,100 drilling locations and 20+ years of inventory; 2024 production averages ~41,000 boe/d.

• Waterflood pilots have shown potential to double recovery rates, with mature patterns delivering up to 6 payouts per well and >2x primary recovery.

• Charlie Lake supports 16,000 boe/d for over a decade, with low break-even costs (<$35/bbl), short paybacks (<1 year), and 247 net sections.

• Stacked pay, multi-zone development, and innovative well designs drive capital efficiency and high IRRs (>150–200%).

• Infrastructure investments have expanded processing capacity and improved reliability for both assets.

Financial strategy and capital allocation

• Reduced net debt from CAD 1.3 billion to CAD 985 million, targeting a floor of CAD 500–600 million and leverage below 1.0x funds flow at $75/bbl WTI.

• Current framework allocates 40% of free funds flow to shareholders and 60% to debt reduction, shifting to 60% shareholder returns as debt falls below CAD 900 million.

• Five-year plan projects 100% growth in free funds flow per share, 80% growth in debt-adjusted production per share, and 3–5% organic annual production growth.

• Balanced capital allocation: $420 million in base dividends, ~$475 million in debt reduction, and ~$850 million in share buybacks over five years.

• Expectation to return up to $3.25/share in value over five years through debt paydown, dividends, and buybacks.