Tamarack Valley Energy Ltd.

Good morning. Welcome, everyone, to the Panorak Valley Energy Ltd. conference call and webcast on Wednesday, October 28, 2026, discussing the recent Q3 2026 results press release. I would like to introduce today's speakers, Mr. Brian Schmidt, founder and CEO, Mr. Steve Buytels, president, and Mr. Kevin Johnston, CFO. If you would like to ask a question... Please press star then the number one on your telephone keypad to join the queue. And if you would like to withdraw your questions, press star two. Thank you. Mr. Schmidt, you may begin your conference.

Good morning and welcome to everyone joining our call to discuss the operating and financial results for the third quarter 2026. My name is Brian Schmidt. I'm the CEO and founder of Tamarack Valley Energy. And today, I'm joined by our president, Steve Buytels, and our CFO, Kevin Johnston. We are excited to report our Q3 results, which reflect the company's first full quarter as a clearwater-focused producer, following the successful disposition of our Charter Lake assets in June. With strong operational execution and elevated commodity prices in 2026, we have generated substantial free cash flows year-to-date, which has allowed us to drive higher growth through the drill bit, and accelerate our waterfall expansion, and importantly, return more capital to shareholders through higher base dividends and share buybacks. Tamarack's third quarter results were also highlighted by the previously announced deal to acquire headwater exploration in an all-stock transaction that will result in a combined value of $10 billion market cap. The strategic acquisition creates a premier North American oil company with top-tier profitability, and an unmatched position as the only publicly traded pure play clearwater producer. The combined company will have a run rate production of greater than 80,000 barrels per day. Kevin will now discuss our Q3 financial highlights. Thank you, Brian.

Tamarack delivered clearwater production over 55,000 BOE per day in Q3, a 16% increase over the prior year. Tamarack generated Q3 fund flow of $214 million dollars and Free Funds Low of $92 million. Year-to-date, the company has generated $375 million of free cash flow, or 78 cents per share. PAMRAC's Q3 capital investments were $120 million for the quarter and were heavily focused on water flood expansion. Our 2026 capital program is trending towards the higher end of our guidance range of $470 million, reflecting the acceleration of development capital into 2026, in response to higher commodity prices and the consolidation of Headwaters Capital Investments from mid-November to the end of the year. We continue to drive per share returns through our share buyback program. Year-to-date, we allocated $190 million to repurchase nearly 16 million common shares. Tamarack has now reduced its common share float by more than 15% since the commencement of the NCIB in 2024 at a weighted average share price of $5.80 per share. On the heels of the Trelley Lake divestiture, we declared a 25% increase to our quarterly dividend to $0.05 per share. In conjunction with the closing of the headwater acquisition, we intend to raise the quarterly dividend a second time by another 20% to $0.06 per share or $0.24 per share annualized. Tamarack is entering the fourth quarter with an undrawn credit capacity of $875 million and cash on hand of $549 million, providing substantial balance sheet strength to fund accelerated clearwater development, return capital to shareholders, or pursue strategic initiatives. Following the acquisition of headwater, we expect to exit the year with net cash of more than $50 million and available funding of $1.2 billion. Steve will now provide an update on our clearwater assets, the headwater transaction, and an outlook for the remainder of the year.