TVE : TSX Creating Sustainable Value December 2023 See Disclaimers and Forward-Looking Statements attached
Corporate Snapshot Ticker Symbol TVE.TSX Shares Outstanding (Basic)(1) (MM) 556.9 Market Capitalization(2) (MM) 1,872 2023 Q3 Exit Net Debt (MM) 1,128 Largest Public Enterprise Value (MM) 3,000 Clearwater Producer Annual Base…
Intersection of Sustainability & Profitability A simple oil formula to create value 1. See Disclaimers Specified Financial Measures ; FFF Free Funds Flow. 2. FFF of 1.8B generated in the 5-Year plan is based on US75/bbl WTI. 3 w w…
Clearwater Infrastructure Partnership Pioneering Partnerships with Indigenous Communities Tamarack and 12 First Nation and Mtis communities formed a new partnership, the Clearwater Infrastructure Limited Partnership (the CIP)…
2024 CAPITAL BUDGET 5 w w w . t a m a r a c k v a l l e y. c a 5
2024 Budget Objectives Maintaining balance to deliver return of capital & long-term value creation Generate FFF(1) for Debt Reduction Commitment to maintain balance sheet strength and deliver on enhanced return framework and…
2024 Annual Corporate Guidance Developing expanded Clearwater assets & investing to enhance margins 2024 Two Phased Budget Capital Program 2024 Two Phased Capital Program (MM) Base Base + CSV Albright 500 Capital Budget MM 410 460…
STRATEGIC OVERVIEW 8 w w w . t a m a r a c k v a l l e y. c a 8
Operational Excellence Propels Rate of Change Focus on levers to deliver long-term free funds flow1 to enhanced shareholder returns Reducing sustaining capital with enhanced oil recovery and well optimization while adding future…
Low Cost Structure Adds to Free Funds Flow1 Generation Infrastructure capital projects and EOR drive low corporate breakeven1 costs EOR initiatives reducing sustaining capital requirements; 2% corporate decline improvement with 2023…
Clearwater Well Design Optimization Continuing to drive cost structure lower and improve economics Historical Multi-lateral Design Optimizing Well Design: South Clearwater Fan 25% decrease in full development costs 30% increase in…
Clearwater Duration Backstops Long-Term Production EOR provides potential to enhance recovery factors and reduce corporate declines Clearwater OOIP2 Multi-year (barrels of Original Oil in Place) Inventory 5-Year plan5…
5-Year Plan Anchors Long-Term Sustainability Enhanced 5-year cumulative free funds flow1 by 20% from 1.5 to 1.8 Billion Annual Production (Mboe/d) 80 2024 2028 Outlook Increase exposure to assets 70 delivering superior returns…
Attractive Free Funds Flow1 Yield Significant free funds flow1 engine allows for a resilient corporate strategy 5 Year Cumulative Free Funds Flow1,2,3 (MM) 3,000 Top tier asset base supported by high asset duration 115 % Yield…
Capital Structure Provides Financial Flexibility Delivering material reduction in debt driven by free funds flow2 Amortization and Maturity Profile (MM) 1 SLB 1,4 Forecast 250MM3 of free funds flow2 in 2024 to be allocated to debt…
Return of Capital Framework Disciplined program design and execution targeting enhanced returns Net Debt1 (MM) 900 1,100 500 900 500 Achieving up to 25% shareholder return threshold3 & & & Debt Floor WTI (US/bbl) 75 85 Net Debt to…
Return of Capital Track Record Over 120MM paid to shareholders in the form of dividends since January 2022 Increased Base Dividend (Annual /share) Free Funds Flow(1) Low corporate sustaining breakeven (1) price Resilience 10+ years…
Risk Management Enhancing certainty with flexibility to capture upside value Percentage of Volume Hedged1,2 Weighted Average WTI Hedge Price1 70% Hedging coverage underpins Balanced portfolio coverage ensures price budgeted revenue…
ASSET PORTFOLIO 19 w w w . t a m a r a c k v a l l e y. c a 19
High Grading Asset Portfolio Enhancing Margins North American Payout Period & Half-Cycle Breakeven by Play3 5.7 7.7 5.5 10 5.1 5.4 6.9 10 9.4 10 10 10 5.0 Payout Period (Yrs) 2x Payout (Yrs) 70 4.5 Break-Even Oil Price (US/bbl…
Canadian Clearwater Advantage1 Alberta Clearwater demonstrates superior economics Marten Hills Clearwater Marten Hills Clearwater Value Drivers 250 Payout 1 Payout 2 Higher and faster returns: Marten Hills wells payout 3x…
Largest Public Clearwater Producer Established extensive exposure through the heart of the Clearwater fairway Scale Extensive holdings across the Clearwater fairway; 665 net sections of land1 Pad development & well design…
Deltastream Acquisition: A Year in the Rearview Trending ahead of acquisition assumptions Base Production Nipisi and West Marten Hills Drills 350 25,000 Oct-2022 Close 2018 Average (8 wells) Sept avg 5,500 bopd from 24 wells 300 22…
Clearwater Enhanced Oil Recovery Moving to development phase as pilots demonstrate ability to double oil recovery Nipisi Trident Pattern TVE EOR Pilots Marten Hills 3-Layer Stacked Pattern Nipisi EOR Production (bbl/d) Offsetting…
Clearwater Waterflood Progression Advancing secondary recovery to drive incremental resource capture Clearwater Oil Production Under Waterflood (bbl/d) Clearwater Production Under Waterflood 3,500 2024 water injection increasing…
Scalable Charlie Lake Light Oil Development plan designed to balance production, processing and egress Scale Large continuous land position with top tier geology; 250 net sections1 of land Pad development with ERH2 wells improving…
Development Outperformance Well design and program execution driving solid results in core areas R12 R10 R8 R6 R5W6 Deploying extended reach horizontal technology to enhance recoveries T78 T78 250 T76 T76 200 Cumulative…
ENVIRONMENT, SOCIAL AND GOVERNANCE 28 w w w . t a m a r a c k v a l l e y. c a 28
Sustainability-Linked Lending & Notes Strengthening our commitment to responsible energy production All of Tamaracks debt has been converted to sustainability-linked debt and includes: 875MM covenant-based revolving…
Sustainability at Tamarack ESG in Action Enabling sustainability and ESG to drive profit and enhance future value 2023 Projects 2024 Projects Marten Creek 70,000 t CO2e Scope 1 emissions in 24 Marten Hills NW 22,000 & 49,000 t CO2e…
Enhancing Shareholder Value Sustainable returns focused strategy to grow free funds flow1 per share Premium Production 61,000 63,000 boe/d(2) comprised of 85% oil & liquids Low Breakeven…
APPENDIX 32 w w w . t a m a r a c k v a l l e y. c a 32
2024 Budget Price Sensitivities1 Atax Adjusted Funds Flow2 (hedged) (MM) Strong Asset Base to Withstand Price Changes Tamarack is most sensitive to WTI pricing given high oil weighting of 80% WTI (+/- US2.00/bbl) +/- 30MM For every…
Canadian Heavy Oil Differential Narrowing WCS differential set to tighten once TMX online in early 2024 WTI / WCS Differential WCS Differential Largely Dictated By TMX Line Expansion Timing Tightening of differentials for the first…
Marten Hills: Developing Top Tier Acreage in the Core Strong positive correlation between injectivity and oil response across the Clearwater fairway R1W5 R25 R23W4 Marten Hills TVE 15-02 EOR Pilot Started Sept 2021; Increased…
Nipisi & West Marten Hills: Enhancing Inventory Focusing on top tier lands in support of long-term sustainable development R11 R9 R7 R5 R3W5 Nipisi & West Marten Hills 2024 Activity: Drilling 69 (66.4 net) wells; including 15 T78…
Southern Clearwater: Substantial Delineated Inventory Scalable development provides capital deployment flexibility across the asset portfolio Southern Clearwater R1W5 R27 R25 R23 R21 R19W4 TVE 2022 Perryvale Drills 2024 Activity:…
Successful Execution of Strategic Repositioning Targeted core area consolidation; adding resource and generate shareholder returns 2020 2022 3x increase Q4 Production: 22,049 boe/d (60% liquids)1 Adding Operational Scale Q4…
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