CALGARY, AB, Oct. 13, 2022 /CNW/ – Tamarack Valley Energy Ltd. (“Tamarack” or the “Company“) (TSX: TVE) is pleased to announce that it has successfully closed the previously announced acquisition (the “Acquisition“) of Deltastream Energy Corporation (“Deltastream“), a privately held pure-play Clearwater oil producer. Tamarack acquired all of the issued and outstanding common shares of Deltastream for total consideration of $1.425 billion comprised of 80 million common shares of Tamarack, $300 million of deferred acquisition payment notes and $825 million in cash.
The Acquisition further solidifies Tamarack as the largest producer in the Clearwater oil fairway. The acquired assets are forecasted to produce an average of ~23,000 boe/d(1) and deliver ~$500 million of EBITDA(2),(3) in 2023. Current production on the acquired assets is ~19,500 boe/d(4). Tamarack expects to realize synergies in gas conservation and infrastructure projects, lowering the GHG intensity of the Tamarack Clearwater asset portfolio.
As previously announced, and in conjunction with the closing of the Acquisition, Tamarack has increased its base monthly dividend by 25% to $0.0125 per month beginning with the November declaration with an expected payment date of December 15, 2022. The increase in Tamarack’s monthly cash dividend reflects the improvement in sustainable free funds flow(2) per share the Company has generated both organically and through the strategic Clearwater acquisitions across 2022 which drive accretion at flat pricing of US$55/bbl WTI and $2.50/GJ AECO.
Tamarack is also pleased to announce the close of its three-year covenant-based sustainability-linked lending facility (“SLL Facility”), which is transformational to the Company’s debt capital structure. The SLL Facility increased to $700 million and is paired with a $260 million two-year secured amortizing term-loan from a syndicate of lenders.
Effective October 13, 2022, Mr. Ian Currie has resigned as a member of the Board of Directors. Mr. Currie has served on the Board of Directors since Tamarack’s acquisition of Spur Resources Ltd. in 2017 and was a critical technical resource in the transformation of Tamarack’s business processes and strategy.
As a result of this change, Tamarack is pleased to announce the appointment of Ms. Kathleen Hogenson to the Board of Directors. Ms. Hogenson is President & CEO of Zone Oil & Gas, LCC and currently serves as various committee chairs on the boards of Verisk Analytics and First Quantum Minerals Ltd. Kathleen has a strong reservoir engineering background and contributes strategic expertise to expanding exploration and production operations. She holds a Bachelor of Science in Chemical Engineering from The Ohio State University and is an active volunteer and mentors emerging female leaders in the energy industry.
Tamarack is also pleased to announce the appointment of Ms. Lynne Chrumka as Vice President, Exploration. Ms. Chrumka brings more than 25 years of industry experience, specializing in exploration across many plays in the Western Canadian Sedimentary Basin. Most recently, she held the role of Vice President, Geosciences at ARC Resources and Seven Generations Energy.
“On behalf of the Board of Directors, executive management team and all of our staff, I would like to extend heartfelt appreciation to Ian for his years of service. His contributions and technical expertise have helped shape Tamarack’s strategic direction. He will be missed by the Board and the executive team” said Brian Schmidt, President and Chief Executive Officer. “We look forward to working alongside him in the Clearwater play. I would also like to welcome Kathleen and Lynne to Tamarack. We are excited to add these dynamic individuals to our leadership team.”
Tamarack is an oil and gas exploration and production company committed to creating long-term value for its shareholders through sustainable free funds flow generation, financial stability and the return of capital. The Company has an extensive inventory of low-risk, oil development drilling locations focused primarily on Charlie Lake, Clearwater and EOR plays in Alberta. Operating as a responsible corporate citizen is a key focus to ensure we deliver on our environmental, social and governance (ESG) commitments and goals. For more information, please visit the Company’s website at www.tamarackvalley.ca.