07:57 AM EDT, 04/16/2024 (MT Newswires) -- Tamarack Valley Energy Ltd.'s ( TNEYF ) production outage could be a temporary drag on the shares, CIBC Capital Markets said.

After market close on Monday, the Calgary-based oil and gas company announced that it has temporarily shut in approximately 6,200 barrels of oil equivalent per day at a third-party gas plant at Mitsue, Alberta, due to flaring limitations set by the province's energy regulator.

"While there are few details available on the potential duration of the outage, the shut-in of approximately 6,200 Boe/d of production maps to approximately 10% of consensus estimates for Q2/24," CIBC analyst Jamie Kubik said in a note to clients.

"We expect management will provide additional updates after evaluating other alternatives to bring production volumes back online," Kubik said.

We see this as a transient issue, but expect it could be a drag on the shares, particularly if the outage persists beyond a few days," the analyst said.

Kubik maintained an Outperformer rating and $4.50 price target on the stock.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)