Tamarack Valley Energy (TSE:TVE), an oil and gas exploration and production company, announced Thursday that the board of directors has approved a capital budget for 2022, pro forma the acquisition of Crestwynd Exploration Ltd.
The company generated an annual production of 45,000 to 46,000 boe/d, allowing a return on capital option and the maintenance of a solid balance sheet.
Tamarack continues to manage commodity price risk and volatility through a prudent hedge management program, with approximately 50% of gross oil production hedged against WTI on average through 2022.
CEO Commentary
Tamarack president and CEO Brian Schmidt said, “We are excited to roll out a strong 2022 plan with a continued focus of building on and delivering sustainable free funds flow. Our program is designed to provide an optimal balance of investment across our asset base with the growth driven by the Clearwater, free funds flow maximization in the Charlie Lake, and decline mitigation through the Enhanced Oil Recovery (EOR) waterfloods. The updated five-year plan, inclusive of the Acquisition, generates robust free funds flow of greater than $1.1 billion dollars at US$55/bbl WTI and greater than $2.1 billion dollars at US$70/bbl WTI.”
Declaration of Inaugural Dividend
Tamarack’s board of directors declared an inaugural monthly cash dividend on its common shares of C$0.0083 per share. The dividend will be payable on February 15, 2022, to shareholders of record at the close of business on January 31, 2022.
Wall Street’s Take
On January 10, RBC Capital analyst Luke Davis kept a Buy rating on TVE, with a price target of C$5. This implies 7.8% upside potential.
The rest of the Street is bullish on TVE with a Strong Buy consensus rating, based on six Buys and one Hold. The average Tamarack Valley Energy price target of C$5.22 implies upside potential of 12.4% to current levels.
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