Tamarack Valley Energy is an oil and gas company whose rate-of-return focused growth strategy targets the drilling and acquisition of repeatable and predictable long-life resource plays in the Western Canadian Sedimentary Basin.
Tamarack’s attractive asset portfolio is focused in the Cardium and Viking light oil plays in Alberta. We have assembled an extensive low-risk drilling inventory which offers paybacks of less than 1.5 years and can achieve sustainable growth under low commodity price scenarios. With an experienced and committed management team, Tamarack is well positioned to continue maximizing shareholder returns while responsibly managing the balance sheet.
Tamarack Valley’s strategy is focused on two key principles – targeting repeatable and relatively predictable plays that provide long-life reserves, and using a rigorous, proven modeling process to carefully manage risk and identify opportunities. We employ a specific resource play screening criteria to identify and evaluate prospective areas for repeatability, scope, long life and large original oil or gas-in-place per section, which usually suggests sizeable reserves.
STRATEGY IN ACTION
Prudent Management through Commodity Price Downturn
- Improved sustainability by reducing opex, capex and G&A
- Reduced debt while delivering per share growth
- Increased drilling inventory and land through tuck-in acquisitions at attractive metrics
- Lowest-cost producer due to core area strategic infrastructure ownership
- Robust hedging program protects against commodity price volatility
- Ability to accelerate growth by adjusting spending levels depending on commodity prices
Continued Focus on Financial Metrics
- Maintain strong balance sheet and keep debt to cash flow <1.5x
- Continued focus on opex reductions and capex efficiencies with further drilling in core areas
- Show per share growth in production and reserves
Stringent Acquisition Criteria Supports Strategy
- ½ cycle ROR on drilling upside must compete for capex with current inventory (< 1.5 year payout)
- Asset must have potential to double production
- Does not materially change oil weighting
- New core areas must be material or have running room to be material
- Acquisition price much less than NAV (internal)
- Be accretive: cash flow per share most important metric
- Existing Shareholders must win