TSX: TVE
CALGARY, AB, June 18, 2020 /CNW/ - Tamarack Valley Energy
("Tamarack" or the "Company") (TSX: TVE) is pleased to announce
that our bank syndicated credit facility has been redetermined at
$275 million, of which the company
was drawn approximately $209 million
as of June 18th, 2020. The Company
has ample liquidity for the remainder of 2020 and expects to
generate free adjusted funds flow1 over and above
planned capital expenditures with a forecasted net debt to trailing
annual adjusted funds flow ratio1 of less than 2x.
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.
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1Adjusted
funds flow, free adjusted funds flow and net debt to trailing
annual funds flow ratio do not have standardized meanings
prescribed by IFRS and therefore may not be comparable with the
calculation of similar measures for other entities. See "Non-IFRS
Measures".
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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; liquidity profile; and
future capital expenditures.
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.
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: risks associated with 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") and
management's discussion and analysis for the year ended
December 31, 2019 (the "MD&A")
for additional risk factors relating to Tamarack. The AIF 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.
Non-IFRS Measures
Certain financial measures referred to in this press release,
such as adjusted funds flow, free adjusted funds flow 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 net income or loss
before taxes and adding back items, including transaction costs,
and certain non-cash items including stock-based compensation;
accretion expense on decommissioning obligations; depletion,
depreciation and amortization; impairment; unrealized gain or loss
on financial instruments; unrealized gain or loss on foreign
exchange; unrealized gain or loss on cross-currency swap; and gain
or loss on dispositions. 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
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 to trailing annual adjusted funds flow ratio" is
calculated as net debt divided by adjusted funds flow for the four
preceding quarters.
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.
SOURCE Tamarack Valley Energy