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TSX: TVE
CALGARY, AB, July 28, 2022 /CNW/ – Tamarack Valley Energy Ltd. (“Tamarack” or the “Company“) (TSX:TVE) is pleased to announce its financial and operating results for the three and six months ended June 30, 2022. Selected financial and operating information is outlined below and should be read with Tamarack’s consolidated financial statements and related management’s discussion and analysis (MD&A) for the three and six months ended June 30, 2022which are available on SEDAR at www.sedar.com and on Tamarack’s website at www.tamarackvalley.ca. The Company is also pleased to announce the disposition of non-core Viking assets (the “Non-Core Viking Disposition”), for total gross proceeds of $70 million(2)along with an operational update, H2 2022 guidance and an update to the return of capital framework.
Brian SchmidtPresident and CEO of Tamarack commented: “We closed and successfully integrated the Rolling Hills Energy Clearwater oil acquisition during the quarter. In addition, our base dividend was increased by 20%, which was underpinned by our strategy and commitment to long-term sustainable free funds flow(1) per share growth, and we initiated our enhanced return framework in Q2 through the purchase of 1.2 million common shares under our Normal Course Issuer Bid (NCIB)”
Q2 2022 Financial and Operating Highlights
- Achieved quarterly production volumes of 43,777 boe/d(3) in Q2/22, representing a 35% increase compared to the same period in 2021.
- Generated Q2/22 adjusted funds flow(1) of $203.6 million ($0.47/share basic; $0.46/share diluted).
- Generated free funds flow(1)excluding acquisition expenditures, of $94.1 million.
- Generated net income of $143.5 million ($0.33/share basic and diluted) during the quarter.
- Increased the monthly cash dividends on common shares by 20%, from $0.0083/share in April and May to $0.0100/share in June, and initiated the enhanced return of capital framework with the purchase of 1.2 million common shares under our NCIB.
- Invested $80.3 million in exploration and development (E&D) capital expenditures and $29.0 million on undeveloped land in the Clearwater and Charlie Lake areas during Q2/22. This contributed to the drilling of 19 (19.0 net) Clearwater oil wells and three (2.8 net) Charlie Lake oil wells. The undeveloped purchases were partially funded through the disposition of a gross overriding royalty (GORR) on certain lands for net proceeds of $14.9 million.
- Exited the quarter with $470.6 million of net debt(1)inclusive of assets held for sale with respect to the Non-Core Viking Disposition, and net debt to Q2/22 annualized adjusted funds flow(1) of 0.6x.
- Closed the acquisition of Rolling Hills Energy Ltd. during the quarter, completing the consolidation of the Company’s position in the Southern Clearwater fairway for consideration of 9.3 million common shares of Tamarack and $49.3 million in cash.
- Subsequent to the quarter, completed the disposition of certain assets in the Viking for gross proceeds of $70 million(2). This is consistent with our portfolio rationalization strategy and focus on long-term sustainable free funds flow(1) growth.
Financial & Operating Results
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Three months ended |
Six months ended |
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|
June 30, |
June 30, |
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|
2022 |
2021 |
%change |
2022 |
2021 |
%change |
|
|
($ thousands, except per share) |
||||||
|
Total oil, natural gas and processing revenue |
407,195 |
152,168 |
168 |
706,090 |
245,602 |
187 |
|
Cash flow from operating activities |
214,708 |
40,253 |
433 |
347,561 |
78,689 |
342 |
|
Per share – basic |
$0.49 |
$0.12 |
308 |
$0.81 |
$0.26 |
212 |
|
Per share – diluted |
$0.49 |
$0.12 |
308 |
$0.81 |
$0.26 |
212 |
|
Adjusted funds flow (1) |
203,622 |
71,741 |
184 |
352,481 |
113,693 |
210 |
|
Per share – basic (1) |
$0.47 |
$0.21 |
124 |
$0.83 |
$0.38 |
118 |
|
Per share – diluted (1) |
$0.46 |
$0.21 |
119 |
$0.82 |
$0.37 |
122 |
|
net income |
143,507 |
230,194 |
(38) |
169,964 |
230,028 |
(26) |
|
Per share – basic |
$0.33 |
$0.69 |
(52) |
$0.40 |
$0.77 |
(48) |
|
Per share – diluted |
$0.33 |
$0.67 |
(51) |
$0.39 |
$0.75 |
(48) |
|
Net debt (1) |
(470,563) |
(505,992) |
(7) |
(470,563) |
(505,992) |
(7) |
|
Capital expenditures(4) |
109,483 |
30,805 |
255 |
234,850 |
79,509 |
195 |
|
Weighted average shares outstanding (thousands) |
||||||
|
Basic |
434,924 |
333,908 |
30 |
427,175 |
300,013 |
42 |
|
Diluted |
438,206 |
341,935 |
28 |
430,406 |
307,608 |
40 |
|
Share Trading (thousands, except share price) |
||||||
|
High |
$6.48 |
$2.90 |
123 |
$6.48 |
$2.90 |
123 |
|
Low |
$4.12 |
$2.16 |
91 |
$3.90 |
$1.25 |
212 |
|
Trading volume (thousands) |
261,745 |
155,905 |
68 |
495,434 |
337,037 |
47 |
|
Average daily production |
||||||
|
Light oil (bbls/d) |
18,233 |
14,535 |
25 |
18,052 |
12,340 |
46 |
|
Heavy oil (bbls/d) |
10,805 |
4,701 |
130 |
9,172 |
3,683 |
149 |
|
NGL (bbls/d) |
3,540 |
3,032 |
17 |
3,825 |
2,728 |
40 |
|
Natural gas (mcf/d) |
67,195 |
60,887 |
10 |
69,082 |
56,699 |
twenty two |
|
Total (boe/d) |
43,777 |
32,416 |
35 |
42,563 |
28,201 |
51 |
|
Average sale prices |
||||||
|
Light oil ($/bbl) |
135.66 |
75.30 |
80 |
123.07 |
70.69 |
74 |
|
Heavy oil ($/bbl) |
115.51 |
61.20 |
89 |
106.91 |
56.47 |
89 |
|
NGL ($/bbl) |
63.61 |
39.57 |
61 |
59.65 |
38.51 |
55 |
|
Natural gas ($/mcf) |
7.81 |
2.77 |
182 |
|
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Full story available on Benzinga.com
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