Good morning! Welcome everyone to Tamarack Valley Energy Ltd. conference call and webcast on Thursday, October 26, 2023, discussing the recent Q3 2023 results press release. I would like to introduce today's speakers, Mr. Brian Schmidt, President and CEO, and Mr. Steve Buytels, CFO. If you would like to ask a question, please press star one on your telephone keypad to join the queue. If you would like to withdraw your question, please press star two. Thank you. Mr. Schmidt, you may now begin your conference. Good morning, and thank you, John. Welcome to everyone on the call to discuss our Q3 operating and financial results. I'm joined this morning by Steve Buytels, CFO. The Q3 delivered solid results, following on Tamarack's previous commitment to, firstly, high-grade our assets to the best plays in North America. Secondly, to demonstrate disciplined capital deployment. Third, focus on maximizing free funds flow through enhancing our margins. And fourthly, to position the balance sheet to achieve our enhanced return thresholds. Record production and significant growth in adjusted funds flow and free funds flow reflected successful execution of the ongoing drilling and field activity across our portfolio of core development prospects. Benefiting from the infrastructure investment through the H1 of 2023, the company has increased our ownership and control of strategic facilities in our plays, resulting in enhanced market access, reduced exposure to third-party downtime, and driving our cost structure lower. Tamarack has significantly expanded its Clearwater and Charlie Lake form footprint to date. Tamarack's owned and operated Wembley Gas Plant continued to provide consistent and reliable processing capacity within the company's operational control. Since commissioning in mid-June, approximately 40% of the Charlie Lake production is processed through the facility, and Tamarack has materially reduced its exposure to third-party downtime at the Wembley to approximately 1.2%, and that's from June 2023 to October 2023. Representing a material improvement from 12% ex-downtime experienced from January 2022 to May 2023. At West Marten Hills, Tamarack is expanding its capacity at Marten Creek Plant to increase gas conservation and reduce emissions intensity in our Clearwater development moves forward. This facility offers the potential to become a regional conservation hub and is expected to initially conserve 6 million standard cubic feet of natural gas per day, commencing in Q1 2024. Lastly, Nipisi Terminal and Pipeline Project, which has been commissioned, with linefill delivered in October. On the heels of this startup, Tamarack was able to secure the sale of initial batches of its Clearwater heavy oil barrels in October for November delivery, which attracted premium pricing relative to existing benchmarks the company sells into. Moving on to production. West Marten Hills continue to see strong results, as Tamarack has recently brought on 13 new B sand wells from two pads on stream, with IP30 rates per well of 225 to over 250 barrels of oil per day. Demonstrating the stack potential in this area, the company also brought two C sand wells on stream from these pads, with initial per well average of 245-314 barrels of oil per day. Tamarack plans to waterflood both the B and C sands from these pads, leveraging interconnect infrastructure to improve the economics of both zones. At Marten Hills, Tamarack increased water injection at 15 -2, beginning in April 2023, and observed a material subsequent oil response of 150 barrels per day higher than pre-ramp rates. The well now has produced over 420,000 barrels of oil on a cumulative basis, representing the highest recovery of any Clearwater multilateral drilled in the history of the play. In southern Clearwater Fairway, the company has drilled 4 wells year to date, utilizing the fan well design. Two of the 4 wells have been producing for over 30 days, and the average IP of those two wells is 244 barrels of oil per day. The fan design drives efficiency through cutting future pad requirements by over 50%, resulting in lower lease and infrastructure costs. Secondly, single centralized pad can be utilized to develop over 4 sections of land. And thirdly, it increases the drill efficiency with more lateral meters per well and fewer turns. Turning to Charlie Lake. With the new Wembley gas plant on stream, Tamarack's Charlie Lake assets achieved a new record production of 16,200 barrels of BOE per day during the Q3. Resulting in continued field development success, the five wells drilled ahead of the commissioning of the Wembley area achieved IP90 rates of 900 barrel BOE per day, with the strongest of these delivering an IP90 rate of 1,185 BOE per day. I'll now pass it on to Steve to run through the financial results, as well as our outlook for the remainder of the year. Thanks, Brian. Corporately, Tamarack achieved record production of 68,597 BOE a day during the quarter. This represents a 58% year-over-year increase and 16% uplift to debt-adjusted per share production on a quarter-over-quarter basis. ...With record production and strong Canadian oil prices, Q3 adjusted funds flow came in at $ 255 million, which was 44% higher than the same quarter in 2022. Net production expense dropped by 17% year-over-year to $ 8.47 per BOE, reflecting the impact of the company's Wembley gas plant, additional infrastructure development in the Clearwater area, and higher production during the quarter. Another key driver of the increased funds flow was the heavy oil price realizations in the quarter. With our increased production base and scale in the Clearwater, our marketing team has been able to enhance our wellhead realizations. We expect to continue to see further improvement with the commissioning of the Nipisi pipeline and blending terminal, which was commissioned at the beginning of October. From a capital perspective, we spent $ 123 million during the quarter, which included $ 86 million on development capital and $ 37 million of facility capital. Q3 activity included 41 and 40.3 net Clearwater heavy oil wells and 1 Charlie Lake light oil well. Net debt was reduced by 17% quarter-over-quarter to $ 1.128 billion as at September 30th, reflecting the benefit of the significant free funds flow generation, non-core dispositions, and assets held for sale at the end of the quarter. In terms of outlook, Tamarack continues to focus on maximizing free funds flow for debt repayment and enhancing shareholder returns as debt thresholds are met. Q4 2023 funds flow is expected to reflect increased oil weighting, driving improved netback realizations through our continued infrastructure initiatives. Tamarack has updated its 2023 production guidance to reflect the West Central non-core Cardium asset disposition, which was previously announced on October 19, 2023. Updated full year 2023 production is expected to be in the range of 65,500-69,500 BOE a day, with Q4 volumes of 65,000-66,000 BOE a day. Production guidance reflects the strong performance of our Clearwater and Charlie Lake drilling programs and the impact of the disposition, which represented approximately 4,500 BOE a day for the Q4 and approximately 1,500 BOE a day for the year. Tamarack expects to provide 2024 budget guidance pre-market on December 6. I will pass it back to Brian for some closing comments before we open it up to questions. Thanks, Steve. Our continued focus on strategically enhancing the portfolio culminated with the recently announced non-core Cardium disposition. Tamarack provides investors with differentiated yet focused exposure in two of North America's most economic plays. Exiting 2023, we expect 88% of our production to be derived from our remaining core holdings in the Clearwater and Charlie Lake. We expect to deliver increased free funds flow, resulting in continued material debt reduction exiting the year. As mentioned previously, this reflects the tale of two halves in 2023, with infrastructure investment in the H1 enabling higher production and improved cost structure and price realizations through the H2 along with reduced infrastructure investments in the H2. I would like to thank our employees, board of directors, shareholders, and stakeholders for all your continued support. I'll pass it back to the moderator for questions. Thank you. Ladies and gentlemen, we will now conduct a question and answer session. If you have a question, please press star, followed by the number one on your touchtone phone. You will hear a three-tone prompt acknowledging your request. If you would like to cancel your request, please press star two. Please ensure you lift the handset if you're using a speakerphone before pressing any keys. One moment please, for your first question. As a reminder, should you have a question, please press star followed by the number one. There are no further questions at this time. I will now hand the call back to Mr. Brian Schmidt. Please go ahead. Our first question for the day is for Mr. Brian Schmidt. Given the strong implied economics of flowing through your Wembley plant, is there a plan for timing on expansion to phase two? Yeah. So, with the wells we drilled here and filling up the plant, I don't see any material need for any, you know, future expansion. We wouldn't be doubling the size of the plant or anything like that. There will be some optimizations and some minor debottlenecking that'll enable, you know, some slight increases in Charlie Lake production, but nothing major here in the foreseeable future. Thank you. The next question is for Steve Buytels. Tamarack invested heavily in infrastructure in H1 2023. The H2 of this year looks very different. Do you anticipate more large-scale infrastructure, construction or capital deployment as you look to 2024? Thank you, great question. You know, as Brian talked about in his opening statements, the H1 of 2023, we did embark on some significant projects with the Wembley gas plant and then the Nipisi terminal and blending facility. So we do see that infrastructure capital ramp down significantly here in the H2. And as we look forward, I would say there's always a run rate amount of facility capital that will be spent as we continue to build out our Clearwater footprint with, you know, tying and building new pads, tying infrastructure and pipelines into central gathering facilities. But from a major infrastructure standpoint, no, we don't see anything that's gonna be driven by Tamarack itself. There is a large third-party expansion in the Charlie Lake with the CSV plant that is gonna be looking to be commissioned by late 2024, early 2025, that you know we will participate in. But again, that is that's a third-party expenditure, and we'll just look to flow volumes there and grow our Charlie Lake on the back of that. This is Brian. The other thing I would add on to that is because of the investments we've made in infrastructure this year, in particular to the Clearwater, we'll be drilling more wells per pad here going forward. We've already increased the number of wells significantly per pad from last year, and we expect that trend to continue, thereby reducing the need for infrastructure, roads, pipelines, that sort of thing. Thank you. Our next question is for Brian Schmidt. With the recent Central Alberta disposition and the Wembley gas plant operational, can we expect a greater focus in the Charlie Lake area with more capital allocation? And will you continue to rebalance your asset portfolio? Yeah, so, there's a couple of good questions there. One on capital, the other on M&A rationalization. Let's deal with capital first. We had been focused on the Charlie Lake and Clearwater anyway, on the capital side, so I don't see, you know, much change there. I think that's why, when I reported, 88% of our new production or our production is coming from our core areas, it's largely because a lot of capital has been going to Charlie Lake and Clearwater at the expense of the other properties. With respect to portfolio rationalization, you know, with the Cardium out of the way, that was a big one, but we've been working on a number of smaller ones through the year. I expect, you know, we'll get some more cleaned up here by year-end. And we're always, you know, going into 2024, we're always looking at some rationalization opportunities. So I expect that to continue, but with 88% of our production coming from core, you know, we've taken the major steps there in that direction. Thank you. Our next question is for Steve Buytels. With the significant debt reduction from the Central Alberta disposition and positive results this quarter, can we expect you to move to an enhanced return in the near future? And would reaching the second threshold for increased enhanced returns become a possibility in the next 12 months? Yeah, great questions. So let's start, you know, with the first one around the, you know, the Cardium proceeds and the free funds flow. You know, at the end of the day here, it looks like, and we talked about that in the Cardium disposition press release, that based on strip and where we see things going, that we would reach the debt threshold by the end of Q4, which in turn would see us being able to deliver on the enhanced return at, you know, on the back of us, you know, releasing our Q4 results. And, you know, in the press release today, we talked about our propensity and are leaning towards doing buybacks as such. So, you know, in short, yes, given strip pricing, we do see that first debt threshold being met. With respect to the second threshold or the 50% return, again, as we look through the year here, and look forward, we haven't put our capital guidance and so forth out for 2024. But again, on strip pricing, with the way we're scoping things out, we could see ourselves getting close to that, within the next 12 months. Thank you. Our next question is for Brian Schmidt. Given the the success of the Fan wells in the South Clearwater that you mentioned, do you anticipate continuing to utilize Fan designs in South Clearwater? And would you extend it to other parts of your Clearwater program? The way we're looking at the fan is we're taking our Tier 3 wells and making them into Tier 2 wells, and we're doing that through reduced infrastructure costs. We don't spend a lot of money with build sections, and we don't waste a lot of inventory with build sections. With the fan design, you get a more complete drainage of a full section. They really do enhance the economics of Clearwater in that 3-5 meter range, where you don't intend to do waterfloods. Waterflood design will-- and the Tier 1 stuff, I don't think I see us moving to fans on there. It's the areas where you don't do waterflood, where we'd be focusing on fans. Thank you. Our next question is for Steve Buytels. You have seen a material reduction in the wellhead differential on your heavy barrels this quarter. Do you expect those improvements to continue in the future? ... Yeah, so when we look at the wellhead differentials, obviously there's, on the heavy side, gonna be some seasonality into, you know, the diluent that you're gonna need to flow in the winter and the colder months. And in the summer months, you know, obviously there is no need for that or a much less need for that on the blending side. That being said, you know, we talk about and highlight the infrastructure investment, specifically the Nipisi pipeline terminal and blending facility. You know, and building out our marketing team here and having the scale and the scope of a larger, being the largest Clearwater producer, it's gonna afford us some other opportunity that otherwise wouldn't be there. So when we take all of those things really together, they culminate in us, you know, forecasting tighter wellhead realizations moving forward and further improvement moving forward. But again, you know, I would stress there's gonna be seasonality in that. And, you know, Q3 was an absolutely exceptional quarter. A lot of kudos to our marketing team. But again, I think it's just gonna reflect that overall margin enhancement in the business that Brian talked about to start. The other thing I would add there too is, you know, we did sell our first batches of Clearwater heavy, the Clearwater heavy benchmark here in November. That is. That's new to us. That's new as a result of our new pipeline terminal that's in Nipisi. That's gonna allow us to do it. That will ramp up over time. It's gonna be a bit of a situation where the refiners need to get comfort with what that feedstock looks like and how they can you know obviously use that in a manner that works for them. So, you know, again, we do see that continuing to you know one give us a bit better pricing as we move forward and continue down that path. And two, you know, obviously increase the amount of production that's gonna be sold in batches to the refiners under that new Clearwater heavy benchmark. Thank you. Our next question is for Steve Buytels again. Where could operating costs go to in 2024? So we'll be careful here. Again, we'll give more detail on December sixth with respect to our 2024 budget. But as we highlighted in our Cardium disposition press release, you know, we do see, you know, a 3%-5% increase in corporate netbacks on a price neutral basis with the disposition, and that's a function of a lower OpEx and then some higher realizations, given the higher liquids percentage pro forma that we see as a company. But, you know, when we look at it for Q4 relative to Q3, you know, I think we've always given guidance of $ 9- $ 9.50. We hadn't changed that for the year. I'd say we're still gonna be within that guidance here. Moving forward, you know, we're probably in that low end of that range, pro forma, the Cardium disposition. And I'll add there, the two projects that we did in the H1 will give long-term, permanent, lower operating costs than what we've had. So they were pretty important projects from a cost perspective. Thank you. Our next question is for Brian Schmidt. Do you see any attractive consolidation slash M&A opportunities in Clearwater? Yeah, you know what? Just to be clear, we've been focused on getting ourselves to the enhanced return and paying down debt. So there may be some stuff, you know, come up next year. There's nothing active that we're working on, mainly because the focus has been on improving balance sheet. Thank you. Our next question is for Steve Buytels. What drives your decision to buy back shares versus a dividend increase? You mentioned that the priority is likely buybacks near term. When would that shift to a dividend increase? Yeah. So again, you know, as we look at reaching that enhanced return threshold, just given the... You know, we look at the intrinsic value, obviously, of our business. We look at other factors, you know, as we look forward into our, you know, free cash flow yield, and things like that relative to our peers. There just is a large value gap, there's no question. You know, Tamarack, from a share price perspective, has underperformed on the year, and it comes back to this tale of two halves and this inflection point that we see today. So again, we see a lot of value in the underlying share price, and that's the direction that we're gonna be leaning, and that's obviously monitored before we make those decisions based on, you know, many factors here internally. With respect to a base dividend increase, you know, we've always predicated that that base dividend is something we're gonna be really disciplined around, and it's predicated on 25% of our free funds flow at $55 WTI. So as we reduce costs in our business and you enhance your margin in your business, in turn, that should afford us the ability over time to increase that. But we will not use the base dividend, as, you know, the lever, if you will, for enhancing return. That'll come through buybacks like we've talked about in the press release and/or special dividends. Thank you. We have no more questions on the line, so I'll pass it back to the moderator. Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.