Tamarack Valley Energy Announces Second Quarter 2022 Financial Results, Non-core Asset Disposition, Operational Update, H2 2022 Guidance & Updated Return of Capital Framework – QNT Press Release


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

Three months ended

Six months ended

June 30,

June 30,

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

Full story available on Benzinga.com



Source link

Recommended For You

About the Author: News Center