Tamarack Valley Energy (TVE) Investor update summary

Strategic portfolio transformation

• Completed divestiture of Charlie Lake assets for CAD 804 million, transitioning to a pure-play Clearwater producer.

• Charlie Lake generated over CAD 450 million in free funds flow and a 70% return on invested capital since 2021.

• Portfolio optimization lowers sustaining capital, breakeven prices, operating costs, and net debt while boosting netbacks and capital efficiency.

• Five-year plan aims to replace Charlie Lake volumes with higher-margin Clearwater barrels, leveraging 25 years of development potential.

• Ongoing land acquisitions and exploration at Seal and Pelican Lake provide further growth optionality.

Capital allocation and financial outlook

• Proceeds from the sale enable accelerated growth, waterflood investment, share buybacks, enhanced dividends, and debt elimination.

• Over CAD 620 million distributed to shareholders to date; expecting to exit Q2 with over CAD 125 million net cash.

• Guidance and royalty rates based on a CAD 80 oil price assumption, with net cash estimates reflecting this scenario.

• Capital program can be flexed to increase growth rates into the mid-teens, above the 8–10% outlined in the five-year plan.

• Focus remains on maximizing per share value through disciplined capital allocation and maintaining low-cost production.

Clearwater growth and operational focus

• Clearwater production and reserves have more than doubled since entry in 2020.

• Current inventory includes 200 million barrels of 2P Clearwater reserves, with 1,700–2,100 wells in inventory.

• Waterflood investment expected to significantly increase recoverable barrels per well.

• Organic growth through drilling and waterflood is a key focus, with decades of inventory to develop.

• Additional upside potential from non-core Clearwater and Mannville stack opportunities.