11:24 AM EST, 12/04/2024 (MT Newswires) -- (Adds analyst comment.)

Tamarack Valley Energy (TVE.TO) on Wednesday announced a capital budget of $430 million to $450 million for 2025.

The budget is expected to deliver annual production of 65,000-67,000 barrels of oil equivalent per day, representing annual growth of about 4%.

The production guidance includes major planned turnaround activity at key facilities in both the Charlie Lake and Clearwater operations in the third quarter of 2025.

The midpoint of the budget is composed of $315 million of sustaining capital, focused on Clearwater and Charlie Lake drilling programs, and about $125 million of growth and water-flood investment supporting near-term production increases and long-term decline mitigation consistent with Tamarack's five-year plan.

The company aims to allocate 60% of 2025 free funds flow to shareholders through a sustainable dividend and share buybacks while balancing continued debt repayment.

At US$70 per barrel West Texas Intermediate oil pricing, the 2025 budget is expected to deliver roughly $300 million of free funds flow, representing a potential total shareholder return of 16%.

National Bank of Canada reiterated its outperform rating and $7.00 price target on the Western Canadian oil and gas producer following the guidance.

National Bank said Tamarack "continues to execute a solid plan, advancing key value initiatives in support of maximized duration and magnitude of free cash, which continues to resonate with shareholders through disciplined return of capital."

Tamarack shares were last seen up $0.10 to $4.58 on the Toronto Stock Exchange.

Price: 4.58, Change: +0.10, Percent Change: +2.23