TSX: TVE
CALGARY, AB, Nov. 30, 2020 /CNW/ - Tamarack Valley Energy Ltd.
("Tamarack" or the "Company") is pleased to announce that our bank
syndicated credit facility has been redetermined and remains at
$275 million. As at November 30th, 2020, the Company has
drawn approximately $189 million and
has ample liquidity for the remainder of 2020 and 2021. Tamarack
has forecasted free adjusted funds flow1 for both 2020
and 2021 with forecasted year-end net debt to trailing adjusted
funds flow ratio1 of less than 1.5x in both
years.
About Tamarack Valley Energy Ltd.
Tamarack is an oil and gas exploration and production company
committed to long-term growth and the identification, evaluation
and operation of resource plays in the Western Canadian Sedimentary
Basin. Tamarack's strategic direction is focused on two key
principles: (i) targeting repeatable and relatively predictable
plays that provide long-life reserves; and (ii) using a rigorous,
proven modeling process to carefully manage risk and identify
opportunities. The Company has an extensive inventory of low-risk,
oil development drilling locations focused primarily in the Cardium
and Viking fairways in Alberta
that are economic over a range of oil and natural gas prices. With
this type of portfolio and an experienced and committed management
team, Tamarack intends to continue delivering on its strategy to
maximize shareholder returns while managing its balance sheet.
Forward Looking Information
This press release contains certain forward-looking information
(collectively referred to herein as "forward-looking statements")
within the meaning of applicable Canadian securities
laws. Forward-looking statements are often, but not always,
identified by the use of words such as "guidance", "outlook",
"anticipate", "target", "plan", "continue", "intend", "consider",
"estimate", "expect", "may", "will", "should", "could" or similar
words suggesting future outcomes. More particularly, this
press release contains statements concerning: Tamarack's business
strategy, objectives, strength and focus; Tamarack's liquidity and
financial position, the factors contributing thereto, the impact
thereof and plans relating thereto; and the availability and use of
the credit facility.
The forward-looking statements contained in this document are
based on certain key expectations and assumptions made by Tamarack,
including relating to: prevailing commodity prices, price
volatility, price differentials and the actual prices received for
the Company's products; the availability and performance of
drilling rigs, facilities, pipelines and other oilfield services;
the timing of past operations and activities in the planned areas
of focus; the drilling, completion and tie-in of wells being
completed as planned; the performance of new and existing wells;
the application of existing drilling and fracturing techniques;
prevailing weather and break-up conditions; royalty regimes and
exchange rates; the application of regulatory and licensing
requirements; the continued availability of capital and skilled
personnel; the ability to maintain or grow the banking facilities;
the accuracy of Tamarack's geological interpretation of its
drilling and land opportunities, including the ability of seismic
activity to enhance such interpretation; and Tamarack's ability to
execute its plans and strategies.
Although management considers these assumptions to be reasonable
based on information currently available, undue reliance should not
be placed on the forward-looking statements because Tamarack can
give no assurances that they may prove to be
correct. By their very nature, forward-looking
statements are subject to certain risks and uncertainties (both
general and specific) that could cause actual events or outcomes to
differ materially from those anticipated or implied by such
forward-looking statements. These risks and uncertainties include,
but are not limited to: the oil and gas industry in general (e.g.
operational risks in development, exploration and production; and
delays or changes in plans with respect to exploration or
development projects or capital expenditures); commodity prices;
the uncertainty of estimates and projections relating to
production, cash generation, costs and expenses; health, safety,
litigation and environmental risks; access to capital; and the
COVID-19 pandemic. Due to the nature of the oil and natural gas
industry, drilling plans and operational activities may be delayed
or modified to react to market conditions, results of past
operations, regulatory approvals or availability of services
causing results to be delayed. Please refer to Tamarack's annual
information form for the year ended December
31, 2019 (the "AIF"), management's discussion and analysis
for the year ended December 31, 2019
(the "2019 MD&A") and the MD&A for additional risk factors
relating to Tamarack. The AIF, the 2019 MD&A and the MD&A
can be accessed either on Tamarack's website at
www.tamarackvalley.ca or under the Company's profile on
www.sedar.com.
The forward-looking statements contained in this press release
are made as of the date hereof and the Company does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, except as required by applicable law.
The forward-looking statements contained herein are expressly
qualified by this cautionary statement.
This press release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about Tamarack's credit facility, net-debt, year-end net
debt to trailing annual adjusted funds flow ratio, adjusted funds
flow, free adjusted funds flow and components thereof, all of which
are subject to the same assumptions, risk factors, limitations, and
qualifications as set forth in the above paragraphs. FOFI contained
in this document was made as of the date of this document and was
provided for the purpose of providing further information about
Tamarack's future business operations. Tamarack disclaims any
intention or obligation to update or revise any FOFI contained in
this document, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the FOFI contained in this document
should not be used for purposes other than for which it is
disclosed herein.
Non-IFRS Measures
Certain financial measures referred to in this press release,
such as adjusted funds flow, free adjusted funds flow, net debt and
net debt to trailing annual adjusted funds flow ratio are not
prescribed by IFRS. Tamarack uses these measures to help evaluate
its financial and operating performance as well as its liquidity
and leverage. These non-IFRS financial measures do not have any
standardized meaning prescribed by IFRS and therefore may not be
comparable to similar measures presented by other issuers.
"Adjusted funds flow" is calculated by taking cash-flow from
operating activities and adding back changes in non-cash working
capital and expenditures on decommissioning obligations since
Tamarack believes the timing of collection, payment or incurrence
of these items is variable. Expenditures on decommissioning
obligations may vary from period to period depending on capital
programs and the maturity of the Company's operating areas.
Expenditures on decommissioning obligations are managed through the
capital budgeting process which considers available adjusted funds
flow. Tamarack uses adjusted funds flow as a key measure to
demonstrate the Company's ability to generate funds to repay debt
and fund future capital investment. Adjusted funds flow can also be
calculated on a per boe basis. Adjusted funds flow per share is
calculated using the same weighted average basic and diluted shares
that are used in calculating income (loss) per share.
"Free adjusted funds flow" is calculated by taking adjusted
funds flow and subtracting capital expenditures, excluding
acquisitions and dispositions. Management believes that free
adjusted funds flow provides a useful measure to determine
Tamarack's ability to improve returns and to manage the long-term
value of the business.
"Net debt" is calculated as bank debt plus working capital
surplus or deficit, including the fair value of cross-currency
swaps and excluding the fair value of financial instruments and
lease liabilities.
"Year-end net debt to trailing annual adjusted funds flow ratio"
is calculated as estimated year-end net debt divided by the
estimated adjusted funds flow for the four preceding quarters at
year-end.
Please refer to the MD&A for additional information relating
to Non-IFRS measures. The MD&A can be accessed either on
Tamarack's website at www.tamarackvalley.ca or under the Company's
profile on www.sedar.com.
1 See "non-IFRS measures"
SOURCE Tamarack Valley Energy