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    TVE   CA87505Y4094

TAMARACK VALLEY ENERGY LTD.

(TVE)
  Report
Delayed Toronto Stock Exchange  -  04:32 2022-11-30 pm EST
5.180 CAD   +1.37%
11/29TAMARACK VALLEY ENERGY LTD. : Ex-dividend day for
FA
11/17Work remains halted at Tamarack Energy site after contractor deaths
AQ
11/16Two workers dead after explosion at Tamarack Valley wellsite in Alberta
RE
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Tamarack Valley to buy Deltastream for $1.1 bln in Canada's fast-growing Clearwater

09/12/2022 | 07:41am EST

Sept 12 (Reuters) - Canada's Tamarack Valley Energy Ltd said on Monday it will buy oil producer Deltastream Energy Corp for C$1.425 billion ($1.10 billion) in Alberta's small but fast-growing Clearwater play.

The Clearwater produces 91,000 barrels of oil per day (bpd), according to RBC, accounting for less than 2% of Canada's total oil production based on Canada Energy Regulator data.

But output has doubled during the past year, providing a fast-growing oil source for the world's fourth-largest oil producer at a time when much-larger oil sands projects are expanding only slowly. Well licensing is more active in the Clearwater than anywhere else in Western Canada, RBC said.

"There is so much opportunity in this play," said Tamarack CEO Brian Schmidt, in an interview. "There's going to be lots more to do there."

Schmidt said the Clearwater has the best economics of any North American play - measured by how often a well repays its capital - due to the large volume of oil in place and the relatively low cost of extracting it.

Tamarack plans to boost output of the acquired assets by 18% to 23,000 barrels of oil equivalent per day next year.

North America benchmark oil trades around $88 per barrel, up 25% year over year on strong demand following global sanctions on exporter Russia.

The purchase is by far the biggest Clearwater deal yet. There have been 13 other Clearwater deals since the second quarter of 2020 worth a combined C$940 million, said Tom Pavic, president of Sayer Energy Advisors.

Tamarack's deal comprises C$825 million in cash, C$300 million in deferred acquisition payment and C$300 million in equity at C$3.75 per share.

Topaz Energy Corp said separately it will buy a newly created 5% gross overriding royalty on current and future oil production from Deltastream's entire Clearwater acreage for C$265.3 million.

The Clearwater's total output could grow to 200,000 bpd in two years, depending on availability of rigs and labor, said Topaz CEO Marty Staples.

Private operators make up about half of the Clearwater's volume. Publicly traded producers include Canadian Natural Resources, Baytex Energy and Headwater Exploration.

Shares of Tamarack edged up 0.3% in Toronto, after it also announced a bought share deal, while Topaz stock climbed 6.3%.

Calgary, Alberta-based Tamarack expects the Deltastream deal to close before the end of October, after which it plans to raise annual dividend by 25% to 15 Canadian cents per share. ($1 = 1.2995 Canadian dollars) (Reporting by Rod Nickel in Winnipeg; Arunima Kumar and Ruhi Soni in Bengaluru; Editing by Vinay Dwivedi, Nick Zieminski and Matthew Lewis)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BAYTEX ENERGY CORP. -0.43% 6.87 Delayed Quote.75.70%
BRENT OIL 1.70% 88.06 Delayed Quote.9.01%
CANADA ENERGY PARTNERS INC. 0.00% 0.065 Delayed Quote.-7.14%
CANADIAN NATURAL RESOURCES LIMITED -0.50% 80.31 Delayed Quote.50.25%
HEADWATER EXPLORATION INC. 3.02% 6.48 Delayed Quote.25.83%
TAMARACK VALLEY ENERGY LTD. 1.37% 5.18 Delayed Quote.34.55%
TOPAZ ENERGY CORP. 0.86% 23.55 Delayed Quote.31.93%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 2.37% 61.45 Delayed Quote.-18.83%
WTI 1.52% 81.803 Delayed Quote.4.48%
All news about TAMARACK VALLEY ENERGY LTD.
11/29TAMARACK VALLEY ENERGY LTD. : Ex-dividend day for
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11/17Work remains halted at Tamarack Energy site after contractor deaths
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Analyst Recommendations on TAMARACK VALLEY ENERGY LTD.
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Financials
Sales 2022 1 485 M 1 097 M 1 097 M
Net income 2022 396 M 293 M 293 M
Net Debt 2022 1 296 M 958 M 958 M
P/E ratio 2022 6,09x
Yield 2022 2,11%
Capitalization 2 882 M 2 129 M 2 129 M
EV / Sales 2022 2,81x
EV / Sales 2023 1,61x
Nbr of Employees 75
Free-Float 98,7%
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Mean consensus BUY
Number of Analysts 8
Last Close Price 5,18 CAD
Average target price 7,33 CAD
Spread / Average Target 41,4%
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Managers and Directors
Brian L. Schmidt President, Chief Executive Officer & Director
June-Marie Innes Director-Finance & Sustainability
Steve Buytels Chief Financial Officer & Vice President-Finance
John Ross Rooney Chairman
Derek Blizzard Controller, Director-Accounting & IT
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