Tamarack Valley Energy Ltd.

Good morning, everyone. Welcome to the Tamarack Valley Energy Limited conference call and webcast on Thursday, October 31, 2024, discussing the recent Q3 2024 results press release. I would like to introduce today's speakers, Mr. Brian Schmidt, President and CEO, and Mr. Steve Vitals, Chief Financial Officer. If you would like to ask a question, please press star, then the number one on your telephone keypad to join the queue. If you would like to withdraw your question, please press start, then the number two. Thank you. Mr. Schmidt, you may begin your conference.

Good morning and thank you, Ina. Welcome to everyone to the call to discuss our third quarter operating and financial results. My name is Brian Schmidt, President and CEO, and I'm joined here today by Steve Vitels, our CFO. The focus of the company in this phase of our strategic transition is to deliver consistent, reliable, and improving results. This quarter backstops that objective with third quarter delivering yet another outstanding quarter for CAMRAC and highlighted by the outperformance on our production volumes that averaged 65,024 BOE per day driven by exceptional Clearwater and Charley Lake drilling programs and our ongoing water flood initiatives. Starting with our Clearwater portfolio, Q3 24 Clearwater production increased to 43,300 BOE per day Reflecting a 15% or 19% per share increase year-on-year as Tamarack continues to expand its heavy oil operations. At West Martin, the company continues to see positive results from the Stacks CSAM delineation program with an IP30 rate of 200 barrels a day observed at the 213 well. from a section 14 pad. Given the strength of initial productivity in the area, the company plans to pursue water flow in both sets. Our continued refinement of drilling designs and program optimizations are driving overall efficiency enhancement and lowering overall capital costs throughout our Clearwater development program. It has so far resulted in a 55% reduction in per meter costs across the Clearwater, highlighted by a 15% or approximately $10 million reduction in capital in the Martin Hills area. The application of fan designs in Clearwater has improved efficiency through lower costs and increased recoveries in areas where secondary recovery potential has not been established. Success of the fan is demonstrated through results in the south Clearwater with a new Brook 13 to 30 pad continued to exhibit strong production in terms in both in terms of ip rate and lower decline the average daily oil rate exceeds 235 barrels per day after seven months of production this pad represents the best wells drilled by industry across the trend to date and tamarack's overall self clear water fan production has grown to 650 barrels per day results demonstrate the fan demonstrate the fan design contributes to lower shallower declines and higher per well estimated ultimate recoveries compared to the conventional design historically applied in the area. We'll water secondary recoveries for exhibiting strong results across multiple areas and sands in the play. Pilots initiated by TAMRAC continue to demonstrate strong performance from secondary recovery the well. Total water injection across the clear water started the year at 2,000 barrels per day and is currently doing 8,650 and forecast to grow to 14,000 barrels a day injection by year end, representing a 60% growth through Q4-24. Water flood activity to date has resulted in an estimated 1,500 barrels a day of incremental oil production, and the company expects to have over 9% of its clear water production supported by water funds. by year-end 24. Moving on to Charley Lake, during the quarter, Tamarac achieved production of 16,200 BLEs a day, which continued to benefit from sustained outperformance related to wells brought on in the first half of 24, primarily in the Wembley area. Tamarac resumed drilling in the Charley Lake play in July, rig-released four horizontal brought online in a pipestone area that were drilled from the 1434 pad and achieved IP30 rates of 1,320 VOEs per day per well. Also in Q324, the company has brought online two Wembley area wells from Section 11 pad that have exhibited encouraging test rates similar to the prior two Q423 drills from this location. Looking ahead, we remain focused on our core assets. Our strategy is continuing to reduce sustaining capital requirements through water flood initiative, improve pricing margins, and implement projects with multiple payouts. I'll now pass it on to Steve Vitels to run through the financial results as our outlook.

Thanks, Bryce. Tamarack delivered adjusted funds flow of approximately $220 million during the third quarter and generated free funds flow of approximately $109 million. Year-to-date, Tamarack has generated approximately $298 million of free funds flow, which on a per share basis represents a 72% increase per year. A couple of other key highlights from the quarter to mention. You know, the strong production performance exceeded the high end of our prior guidance, and we'll get to more of that a little bit later with respect to an update to guidance. Continued cost reductions and better wellhead realizations are driving stronger margins across the business. We see the majority of these cost reductions carrying forward on the back of our infrastructure investments over the past few years. The expanded Clearwater Infrastructure Limited Partnership added a 13th Indigenous community and transferred an additional 50.8 million of Clearwater assets to the partnership for 43.2 million in cash and retained 15% operating interest in the assets. During the quarter, we repurchased 12.3 million common shares. In total, during the first nine months of the year, the company has bought back approximately 22 million shares, representing 4% of the year-end 2023 shares outstanding, for a total repurchase value of approximately $83 million. Total shareholder return value for the first nine months of 24 was 144.7 million, or approximately 26 cents per share, including base dividends of $61.4 million. In addition, during this period, we further strengthened our balance sheet with third quarter exit net debt of just over 807 million. In total, net debt has been reduced by approximately $176 million year to date. While share buybacks remain our preferred method to return capital to shareholders, The company has elected to modestly raise our monthly dividend by 2% per share. This will represent the fourth increase and a 53% uplift since announcing the inaugural dividend in December of 2021. In response to the continued strong well performance and benefits from the infrastructure optimization during the year, the company has increased the full year production guidance range to 63,000 to 64,000 BUEA. The 2024 program, which is delivering higher production than originally budgeted, is forecasted to be achieved at a lower cost, benefiting from drilling and facility efficiencies. As previously released, and utilizing a portion of the Clearwater Infrastructure Partnership expansion proceeds, we will drill four Charlie Lake wells in the fourth quarter, expand regional pipeline capacity in advance of the third-party plant commissioning of the CSB project, gas plant in early 2025. In addition to this, we will expand our water flood investment program in the Clearwater. Tamarac anticipates spending for the year to be approximately $440 million, consistent with our prior guidance, which is inclusive of the incremental Charlie Lake wells I just mentioned and the water flood investment as the company continues to out-deliver against the capital deployed. NAMRAC is also updating our 24 corporate cost guidance on the back of a continued focus on reducing cost and enhancing margin with improved expenses for transport cost, carbon tax, and interest. I'm going to pass it back over to Brian here to wrap up our call.