Tamarack Valley Energy Ltd.

Good morning. Welcome, everyone, to the Tamarack Valley Energy Limited conference call and webcast on Wednesday, February 25th, 2026, discussing the recent Q4 2025 results press release. I would like to introduce today's speakers, Steve Vitale, President, Kevin Johnston, CFO, and Ben Stoodley, Vice President, Engineering. 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 star two. Thank you, Mr. Baitels. You may begin your conference.

Thank you, Joanne. Good morning and welcome everybody to the call to discuss the fourth quarter and full year operating and financial results for 2025, as well as our year-end reserve report. My name is Steve Baitels. I'm the president of Tamarack Valley, and today I'm joined by Kevin Johnson, chief financial officer, and Ben Studley, our VP engineering. This morning, we announced our Q4 and full-year 2025 results and our 25 year-end reserves and an operational update. 2025 was a record-setting year for Tamarac with a focus on continued rate of change in the business to further enhance the overall profitability and maximize shareholder value and per share results. We completed our multi-year transformation into a Clearwater and Charlie Lake Oil producer, and our asset portfolio is now exclusively focused on some of the most profitable conventional oil plays in North America, as evidenced by our strong financial and reserve results. The team delivered an exceptional 25 from an operational standpoint, which resulted in two positive guidance revisions through the year, with capital coming in at the low end of our guidance through efficiency gains, while production significantly outperformed, even after adjusting for M&A through the year. on the back of strong drilling results in both the Clearwater and Charlie Lake and strong response across our water flood program in the Clearwater. Further, corporate costs came in below guidance, highlighted by a 17% year-over-year reduction of net operating expenses as we continue to execute margin-enhanced opportunities across the business. The culmination of these efforts drove free cash flow of approximately $390 million in the year, Shareholder returns were a key focus with the company repurchasing approximately 36 million shares or 6.9% of the 2024 year end share count at an average price of approximately $5 per share. In addition, we increased the dividend by 5%. In total, we returned 262 million to shareholders in 2025 between share buybacks and the base dividend. When we add the buybacks, the base dividend, production growth, and debt repayment together, we delivered a total return for shareholders of approximately 19% in the year. Portfolio optimization and the continued investment in water flood has had several material benefits to Tamarac. If we compare our 2023 to the midpoint of our 2026 guidance, our corporate base decline rate is 13 percentage points lower. The sustaining capital to keep production flat is approximately 30% lower, and our net operating expenses on a dollar per BOE basis is approximately 25% lower. Collectively, we estimate this has reduced our U.S. dollar WTI breakeven price by approximately $8 per barrel since 2023. With our 2026 corporate sustaining free funds flow breakeven, of less than US $40 a barrel WTI, excluding hedges, or approximately US $35 a barrel WTI, including our hedge program. We have positioned ourselves as the largest public clear water producer, with over 12 billion barrels of original oil in place. We continue to expand our land holdings in the play, which grew by 25% in 2025 to now over 850 net sections, and they hold over 2,100 primary locations across our land base. This implies greater than 25 years of drilling inventory across the stacked horizons, not accounting for any future success in the Wabiska Formation in the Pelican Region. In addition, the water flood provides significant recovery upside in the Clearwater, where we see the application doubling, if not tripling, primary recovery. We currently have between 10% to 15% of our Clearwater acreage under water flood, with a significant runway remaining. We believe we have an advantage business model that stands out across commodity cycles, given the unique ability to show top line production growth, while at the same time reducing our corporate decline through water flood, which in turn lowers our reinvestment requirements. This allows us to compound and grow free funds flow through the plan, even at low prices. I'll now turn it over to Ben Studley, our VP Engineering, to walk through our 2025 year-end reserves report.

Thank you, Steve. I'll begin with a summary of Tamarac's 2025 year-end corporate reserve performance, followed by a discussion of our clearwater reserves and resources. To start at a corporate level, Tamarac delivered meaningful and capital-efficient reserves growth across all categories in 2025. Approved developed producing, or PDP, reserves increased by 31% year-over-year. Total proved reserves grew by 26%, while total proved plus probable reserves increased by 18%. When excluding reserves and production associated with acquisitions and divestitures completed during the year, total proved plus probable reserves increased by 30%, resulting in 413% production replacement. This performance was driven by the continued successful deployment of secondary recovery in the Clearwater, combined with strong, repeatable results in the Charlie Lake. These operational outcomes were further enhanced by our ongoing share buyback program and continued net debt reduction. On a per share basis, debt adjusted reserve volumes also showed strong growth, increasing 42% on a PDP basis and 28% on a total proof plus probable basis year over year. From a cost perspective, 2025 PDP finding and development costs were $8.09 per BOE, Total approved costs were $8.01 per BOE, and total approved plus probable costs were $7.93 per BOE. With a 2025 field net back of $41.71 per BOE, Tamarac generated corporate recycle ratios exceeding five times across all reserve categories. Turning now to the Clearwater. Reserve growth in 2025 was particularly strong. PDP reserves increased by 63%, total approved reserves grew by 64%, and total approved plus probable reserves increased by 56% year over year. Finding and developing costs across all reserve categories averaged approximately $7 per BOE, enabling the Clearwater assets to generate recycle ratios of approximately six times across each category. Reserves replacement was 256% on a PDP basis, 401% on a total approved basis, and 534% on a total approved plus probable basis. Notably, water flood related PDP reserve additions achieved finding and development costs of less than $3 per BOE. PDP reserves under water flood expanded by 300% in 2025, while only 37% of total clear water reserves are currently assigned to water flood development. Collectively, these results underscore the scale, quality, and long-term value of Tamarac's Clearwater assets. In addition to booked reserves, Tamarac continues to expand its resource inventory. As of December 31, 2025, the company held 115 million barrels of best estimate gross unrisked contingent resources in the Clearwater, representing an 8% increase from year-end 2024. Gross unrisked prospective resources totaled 104 million barrels, a 6% increase year-over-year. As Steve mentioned, Tamarac has identified approximately 2,100 net drilling locations, of which 520 are net booked locations. And at our current pace of primary development, this represents more than 25 years of drilling inventory. Operationally, activity in the Clearwater remained robust throughout 2025. During the year, Tamarac drilled 94.3 net horizontal heavy oil wells for primary development in the Clearwater Fairway. In support of water flood expansion, we also drilled 25 water injection wells, drilled two source water wells, and converted 16 producing wells to water injectors. Water flood response continues to build, with heavy oil production uplift now estimated at more than 5,000 barrels per day, representing approximately 10% of total clear water production. Tamarack exited 2025 with water injection rates exceeding 40,000 barrels per day, nearly three times the rate at the end of 2024. Looking ahead... We plan to increase water injection to approximately 60,000 barrels per day by the end of 2026, with roughly 35% of clearwater oil production under water flood, compared to approximately 24% today. Water flood capital expenditures in 2026 are forecasted at $100 million, representing a doubling relative to our capital expenditures in 2025. In addition, Tamarack plans to drill two de-risk wells in the Pelican area in 2026, one targeting the Wabaskaw and one targeting the Clearwater. Finally, turning to the Charlie Lake, in 2025, Tamarack drilled 13.8 net wells and brought 16.8 net wells on stream across the Wembley and Pipestone areas. The Charlie Lake generated approximately $190 million in asset-level operating net back and $70 million in asset-level free net operating income during the year. Tamarack's recently drilled 114 of nine well in Wembley has achieved, or in Pipestone, has achieved an IP rate of 1,400 barrels per day of oil. and 2,000 barrels of oil equivalent per day. During the fourth quarter, Tamarac successfully redirected production to a new third-party CSV Albright gas plant and the Elta Gas Pipestone 2 gas plant expansion. With access to both owned and third-party processing and egress capacity, Tamarac retains significant capital allocation flexibility to support ongoing operations, sustain production, and enable potential future growth in the Charlie Lake. For 2026, we plan to maintain a flat exit rate production profile of a one-rig program drilling approximately 10 wells across Pipestone and Wembley. Kevin Johnston, our CFO and VP Finance, will talk through some of our 2025 operational and financial highlights in more detail.