Tamarack Valley sets 2026 capital investment at ~$400M

Executive Summary

• Tamarack Valley Energy announced its 2026 corporate budget, targeting a capital investment program of $390 million to $410 million to drive approximately 3% year-over-year production growth.
• The company highlighted improved financial resilience, projecting a sustaining free funds flow breakeven cost of approximately $35 (U.S.) per barrel WTI and announcing additional shareholder returns via share buybacks in 2026.
• The Board of Directors appointed Craig Bryksa as a new director, effective December 2, 2025.

Key Details

• 2026 Capital Budget: Total capital investment program of $390 million to $410 million.
• Production Guidance: Projected year-over-year production growth of approximately 3% (approximately 9% adjusted for non-core asset divestitures in 2025).
• Clearwater Asset Allocation: Approximately 70% of capital dedicated to Clearwater.
  • Drilling of >75 primary development wells (18% decline from 2025).
  • Implementation of >65 new injection wells (including 25 conversions) across Nipisi, West Marten, Marten Hills, and South Clearwater.
  • Waterflood investments forecasted at $100 million (double the 2025 level).
  • Injection rates expected to grow by 70% to 60,000 barrels per day (exit-to-exit).

    35% of Clearwater oil production expected to be under waterflood by end of 2026.

• Charlie Lake Asset Allocation: 20% of capital budget allocated to maintain flat exit rate production profile.
  • One-rig program to drill 10 wells at Pipestone and Wembley.
• Derisk & Exploration: Opportunities in Clearwater fairway and Pelican area.
  • Land position in Pelican increased to 31.25 net sections.
  • Plans to drill both Wabiskaw and Clearwater oil zones at Pelican in 2026.
• Sustaining Capital: Estimated at $265 million, reflecting a 16% reduction compared to the prior year.
• Cost Structure:
  • Sustaining free funds flow breakeven cost: ~$35 (U.S.) per barrel WTI (<$40 unhedged).
  • Net production expenses anticipated to decline by 6% year-over-year.
  • Corporate production decline rate anticipated at 22% for the full year.
• Shareholder Returns:
  • Company achieved net debt target of 1.0x net debt to adjusted EBITDA at $50 (U.S.) per bbl WTI.
  • Allocation of additional free funds flow to share buybacks in 2026.
  • Commitment to sustainable base dividends.
• Board Appointment: Craig Bryksa appointed to the Board of Directors, effective December 2, 2025.
  • Former President and CEO of Veren Inc. (until combination with Whitecap Resources in May 2025).
  • Current board member of Whitecap Resources Inc.

Notable Quotes

• "Tamarack has designed a scaled 2026 capital investment program of $390-million to $410-million to maximize total return while maintaining flexibility in the prevailing commodity price cycle."
• "Tamarack is projecting a sustaining free funds flow breakeven cost of approximately $35 (U.S.) per barrel WTI... as the company continues to drive higher margins in the business through improved capital efficiencies, higher price realizations, lower costs and portfolio optimization."
• "With the improvements demonstrated in the updated long-range plan, the company has achieved its net debt target of one times net debt to adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) at $50 (U.S.) per bbl WTI and is allocating additional free funds flow to share buybacks in 2026."