The following is a summary of the Tamarack Valley Energy Ltd. (TNEYF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Tamarack Valley Energy reported adjusted funds flow of approximately $220 million in Q3 2024, with free funds flow of approximately $109 million.

• Year-to-date free funds flow has reached approximately $298 million, a 72% increase on a per-share basis year-over-year.

• The company increased full-year production guidance to 63,000 to 64,000 boe per day, reflecting higher production at lower costs.

• Tamarack has reduced net debt by approximately $176 million year-to-date, with third-quarter exit net debt at just over $807 million.

• Capital expenditures are expected to remain around $440 million for the year, and monthly dividends were modestly raised by 2% per share.

Business Progress:

• Tamarack Valley's Q3 results highlighted strong performance especially in the Clearwater and Charlie Lake areas.

• Achieved production levels in Clearwater increased 15% year-over-year, and Charlie Lake maintenance saw sustained output from wells drilled earlier in the year.

• The company continued its share buyback program, repurchasing around 22 million shares in the first 9 months of 2024, resulting in significant shareholder return value.

• Plans to expand regional pipeline capacity and waterflood investment program in the Clearwater to drive future growth.

Opportunities:

• Tamarack is leveraging the improvement in Clearwater recovery through fan designs and waterflood initiatives which enhances efficiency and sustains production levels.

• The company views increased full-year production guidance and infrastructure investments as opportunities to bolster financial and operational performance in the forthcoming periods.

• The adoption of waterflood techniques is aimed at doubling the primary EUR of wells, showing potential for substantial long-term yield increases.

Risks:

• The evolving dynamics in the Charlie Lake play may pose operational challenges.

• The impact of ramping up waterflood from 2,000 barrels per day to 14,000 barrels at year-end may risk unforeseen operational issues despite current positive projections.

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