06:32 AM EDT, 10/31/2024 (MT Newswires) -- Tamarack Valley Energy ( TNEYF ) on Thursday reported an increase in third quarter earnings, even if it missed forecasts, as strong production in the quarter prompted it to increase its dividend.

Third-quarter earning per share basic and diluted rose to $0.17 compared with $0.02 a year earlier. The consensus forecast at Capital IQ for EPS (GAAP) was $0.39.

Among highlights, production averaged 65,024 boe/d, exceeding the high end of prior guidance, reflecting ongoing strength in corporate performance driven by the Clearwater and Charlie Lake drilling programs and waterflood initiatives. Third-quarter 2024 Clearwater production increased to 43,300 boe/d, a 15% increase YoY as Tamarack continues to expand its heavy oil operations.

In response to the continued strong well performance and benefits from infrastructure optimization during the year, the company has increased the full-year production guidance range to 63,000 to 64,000 boe/d.

TVE said the 2024 capital program, which is delivering higher production than originally budgeted, is forecasted to be achieved at a lower cost, benefitting from drilling and facilities efficiencies. Utilizing a portion of the CIP expansion proceeds, Tamarack will drill 4 Charlie Lake wells in Q4 204, expand regional pipeline capacity in advance of the third-party plant commissioning in early 2025, and expand its waterflood investment program in the Clearwater. Tamarack anticipates spending for the year to be approximately $440 million, consistent with prior guidance, which is inclusive of the incremental Charlie Lake wells and waterflood investment as the company continues to out deliver against the capital deployed.

Tamarack is also updating its 2024 corporate costs guidance on the back of a continued focus on reducing costs and enhancing margins. Transportation cost guidance is reduced in response to improved oil transportation contracts and lower trucking costs. Guidance regarding carbon tax is updated to reflect savings related to anticipated taxable emissions reductions in 2024, resulting from ongoing Clearwater carbon abatement initiatives. Interest expense guidance was reduced primarily due to lower net debt and lower interest rates. The change to income tax guidance reflects Tamarack's profitability outperformance and the impact of the CIP expansion.

Tamarack's per share monthly dividend will increase by 2% for the November dividend, payable in December, to $0.01275 from $0.0125 previously, which equates to $0.1530 annually.

TVE was down $0.01 at $3.90 on the TSX yesterday.