Earnings release
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TSX: TVE Tamarack Valley Energy Announces Strong Q2 Results, Provides OperaƟonal Update, Declares Enhanced Q3 Dividend and Makes ExecuƟve Appointment Calgary, Alberta – July 28, 2026 – Tamarack Valley Energy Ltd. is pleased to announce its financial and operaƟng results for the three and six months ended June 30, 2026. Selected financial and operaƟng informaƟon should be read with Tamarack’s unaudited consolidated interim financial statements and management’s discussion and analysis for the three and six months ended June 30, 2026, which are available at www.sedarplus.ca and www.tamarackvalley.ca. Tamarack delivered strong second quarter Clearwater producƟon, operaƟng results and cash flows driven by robust operaƟonal execuƟon and elevated commodity prices. Following the sale of the Company’s Charlie Lake assets on June 15, 2026, Tamarack is now a pure-play Clearwater producer with run-rate production of >54,000 boe per day (92% liquids), net cash(1) of $132.6 million and available funding(1) of $1.3 billion. The divestment has provided the Company with greater capital allocation flexibility to drive higher total shareholder returns across commodity price cycles through a combination of accelerated development of the Clearwater’s high-margin, long-duration inventory and enhanced returns via share buybacks and the base dividend. Q2 2026 OperaƟonal and Financial Highlights ProducƟon – In the second quarter, Tamarack’s Clearwater assets delivered 53,598 boe per day, reflecƟng a 15% increase over Q2 2025. Corporate producƟon averaged 69,229 boe per day in Q2 2026, with Clearwater producƟon growth offset by the sale of the Charlie Lake assets on June 15, 2026 (~18,000 boe per day) and other non-core assets in 2025. Record cash flows – In the second quarter of 2026, Tamarack delivered record cash flows, with cash provided by operaƟng acƟviƟes of $313.3 million, adjusted funds flow(1) of $255.1 million and free funds flow(1) of $154.8 million, or $0.32 per diluted share. Year to date, Tamarack delivered free funds flow(1) of $282.9 million ($0.58 per diluted share). Capital investments – Tamarack invested $98.7 million in the second quarter. Capital investment in Q2 was focused on Clearwater primary development and waterflood expansion acƟviƟes, with the Company drilling 18.0 net Clearwater heavy oil producƟon wells and 18.0 net injecƟon and water source wells. Shareholder returns – In Q2, Tamarack repurchased 6.6 million common shares, or 1.4% of the common share float, for a total cost of $80.3 million under its share buyback program. Together with base dividends, Tamarack returned $165.8 million to shareholders in the first half of 2026. In conjuncƟon with the Charlie Lake divesƟture, Tamarack also announced a 25% increase to its base dividend ($0.20/share annualized) beginning in the third quarter of 2026. Porƞolio opƟmizaƟon – In Q2, Tamarack completed the sale of its Charlie Lake assets for cash consideraƟon of $803.8 million, before closing adjustments. Net proceeds from the divesƟture were iniƟally uƟlized to eliminate net debt(1) and will support addiƟonal primary and secondary development acƟviƟes across Tamarack’s Clearwater fairway, driving accelerated producƟon growth and returns. Liquidity – In Q2, Tamarack redeemed its remaining 2027 Notes and extended the Credit Facility maturity date to 2030. Tamarack exited the second quarter with net cash(1) of $132.6 million and available funding(1) of $1.3 billion, including cash on hand of $508.3 million and an undrawn credit capacity of $875.0 million. Q2 2026 OperaƟonal and Financial Highlights ($ thousands, except per share amounts) Three months ended Six months ended June 30 2026 2025 % change 2026 2025 % change Oil and natural gas sales $ 603,791 $ 408,267 48 $ 1,407,730 $ 852,555 23 Cash provided by operating activities 313,292 189,579 65 496,628 377,132 32 Per share – basic 0.66 0.38 74 1.03 0.74 39 Per share – diluted 0.65 0.37 76 1.02 0.73 40 Adjusted funds flow(1) 255,050 197,037 29 476,828 423,183 13 Per share – basic 0.53 0.39 36 0.99 0.83 19 Per share – diluted 0.53 0.39 36 0.98 0.82 20 Free funds flow(1) 154,780 133,114 16 282,890 223,807 26 Per share – basic 0.32 0.26 23 0.59 0.44 34 Per share – diluted 0.32 0.26 23 0.58 0.44 32 Net income 205,676 86,237 139 211,321 150,495 40 Per share – basic 0.43 0.17 153 0.44 0.30 47 Per share – diluted 0.43 0.17 153 0.43 0.29 48 Dividends 19,164 19,233 - 38,475 38,799 (1) NCIB repurchases 80,335 41,803 92 127,365 98,133 30
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($ thousands, except per share amounts) Three months ended Six months ended June 30 2026 2025 % change 2026 2025 % change Debt 319,589 717,395 (55) 319,589 717,395 (55) Net (cash) debt(1) (132,634) 711,132 (119) (132,634) 711,132 (119) Available funding(1) 1,338,590 468,312 186 1,338,590 468,312 186 Investments in oil and natural gas assets 98,724 63,166 56 192,177 195,897 (2) Weighted average shares outstanding Basic 478,193 503,447 (5) 481,093 509,346 (6) Diluted 482,750 508,268 (5) 486,479 514,244 (5) Average daily production Heavy oil (bbls/d) 49,291 42,004 17 48,817 41,198 18 Light oil (bbls/d) 8,757 14,149 (38) 9,464 14,177 (33) NGL (bbls/d) 2,157 3,120 (31) 2,327 3,064 (24) Natural gas (mcf/d) 54,142 65,922 (18) 57,992 63,284 (8) Total (boe/d) 69,229 70,260 (1) 70,273 68,986 2 Average sale prices Heavy oil ($/bbl) $ 106.81 $ 73.58 45 $ 92.34 $ 78.19 18 Light oil ($/bbl) 134.63 82.76 63 113.53 87.75 29 NGL ($/bbl) 44.38 29.97 48 40.60 32.49 25 Natural gas ($/mcf) 1.77 2.00 (12) 1.93 2.30 (16) Total ($/boe) 95.84 63.85 50 82.37 68.28 21 Benchmark pricing West Texas Intermediate (US$/bbl) 92.79 63.74 46 82.36 67.58 22 Western Canadian Select (WCS) (C$/bbl) 108.04 73.96 46 93.63 79.13 18 WCS differential (US$/bbl) 14.61 10.27 42 14.39 11.47 25 Edmonton Par (Cdn$/bbl) 132.27 84.25 57 112.88 89.79 26 Edmonton Par differential (US$/bbl) (2.90) 2.84 nm 0.43 3.91 (89) Foreign Exchange (USD to CAD) 1.38 1.38 - 1.38 1.41 (2) Operating netback ($/boe) Oil and natural gas sales 95.84 63.85 50 82.37 68.28 21 Royalty expenses (19.91) (12.15) 64 (15.50) (13.11) 18 Net operating expenses(1) (6.96) (8.01) (13) (7.15) (7.89) (9) Transportation expenses (3.83) (3.54) 8 (3.76) (3.61) 4 Operating field netback ($/boe)(1) 65.14 40.15 62 55.96 43.67 28 Realized commodity hedging gain (loss) (8.65) 0.11 nm (5.33) (0.79) nm Operating netback ($/boe)(1) $ 56.49 $ 40.26 40 $ 50.63 $ 42.88 18 Adjusted funds flow ($/boe)(1) $ 40.48 $ 30.82 31 $ 37.49 $ 33.89 11 2026 Outlook (3) & Clearwater Update For the year ended December 31, 2026 Original guidance (December 2025) Revised guidance (June 2026) Capital investments ($ millions) Clearwater and other 385 - 405 H1 2026 Charlie Lake 45 Base 2026 capital investment budget 390 - 410 430 - 450 Production(2) (boe/d) Clearwater 53,500 - 55,000 H1 2026 Charlie Lake 8,000 Annual average production 69,000 - 71,000 61,500 - 63,000 Selected operating metrics Average oil & NGL weighting (%) 84 - 86 88 - 90 Royalty rate (%) 19 - 21 20 - 22 Corporate wellhead price differential – Oil(4) ($/bbl) 1.00 - 1.50 0.75 - 1.25 Net operating expense(1) ($/boe) 6.85 - 7.15 6.65 - 6.90 Transportation ($/boe) 4.00 - 4.50 4.00 - 4.50 Interest ($/boe) 2.70 - 3.10 2.00 - 2.40 General and administrative ($/boe) 1.30 - 1.45 1.40 - 1.55 Income taxes (% of adjusted funds flow(1) before tax) 10 - 12 17 - 19
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Tamarack’s Clearwater assets delivered average producƟon of 53,598 boe per day in Q2 2026, compared to 46,486 boe per day in Q2 2025, reflecƟng the ongoing success of primary development drilling and waterflood expansion. Tamarack expects Clearwater producƟon to average 53,500 - 55,000 boe per day for the full year, reflecting a ~15% increase year-over-year . In conjuncƟon with the Charlie Lake divesƟture, Tamarack expanded its 2026 capital program in the Clearwater fairway by ~$75 million, with 40% of the expansion dedicated towards waterflood investment. The Company remains nimble with an ability to redeploy capital towards the highest return opportuniƟes in the Company’s porƞolio. By allocaƟng more growth capital into the higher-margin Clearwater barrels, together with an elevated commodity price environment, Tamarack expects to generate higher cash returns on invested capital. Tamarack is observing prolific waterflood response to date in 2026 from paƩerns on injecƟon prior to the start of the year. In Marten Hills, the producƟon under waterflood is back to ~88% of the historical primary peak from more than five years ago and conƟnues to trend higher. The waterflood upliŌ in this area is now over 3,600 bbl per day of oil, which translates to ~200 bbl per day per injector. In West Marten, waterflood response is establishing new producƟon highs well beyond historical primary producƟon peaks in both the B and C sands. Strong, consistent results from these two areas have provided confidence in the addiƟonal capital allocated to waterflood in 2026. The Company is currently injecƟng ~45,000 bbl per day of water which is expected to grow to 50,000 bbl per day in early August. Tamarack is reaffirming its 2026 exit water injecƟon guidance of 70,000 bbl per day, a 16% increase over the original budget, and expects to have over 38% of Clearwater oil producƟon under waterflood by the end of the year. Response from the waterflood conƟnues to grow, with total oil upliŌ now esƟmated to be greater than 8,500 bbl per day, or 16% of Tamarack’s Q2 Clearwater producƟon. In addiƟonal to development acƟviƟes across the Company’s core areas, Tamarack’s H2 drilling program includes Clearwater and Wabiskaw delineaƟon targets in the Pelican area as the Company conƟnues to pursue incremental value to its five-year plan. The Company is also progressing enhanced oil recovery pilots and planning at South Clearwater, Seal and Pelican. Waterflood conƟnues to be the recovery technology of choice across the main Clearwater fairway, supported by strong producƟon response and aƩracƟve economics. Targeted evaluaƟon of alternaƟve recovery technologies, including thermal, are being assessed on areas with differing fluid and reservoir parameters. As the waterflood development conƟnues to expand, Tamarack expects to further enhance recovery factors, reduce corporate decline rates, lower reinvestment rates and improve long-term capital efficiency. The Company believes its extensive drilling inventory, combined with conƟnued waterflood expansion and exploraƟon upside at Seal and Pelican Lake, provides decades of high-quality development runway. Shareholder Returns & Dividend DeclaraƟon The Company remains opportunisƟc with significant opƟonality and balance sheet strength to maximize total shareholder returns across commodity price cycles. In the near-term, the Company expects to conƟnue execuƟng a disciplined capital management strategy targeƟng a balanced allocaƟon of Clearwater growth and enhanced shareholder returns in the form of dividends and share buybacks. In the second quarter of 2026, the Company repurchased 6.6 million common shares at an average cost of $12.24 per share. Year to date, the Company has repurchased 2.3% of the common share float, or 11.1 million shares at a weighted average price of $11.19 per share. Since the commencement of the share buyback program in January 2024, the Company has now reduced the common share count by 14.6%, or 81.2 million common shares, at a weighted average cost of $5.39 per share. In conjuncƟon with the Charlie Lake divesƟture, Tamarack previously announced a 25% increase to its quarterly dividend from $0.04 per share to $0.05 per share ($0.20 per share annualized), commencing in the third quarter of 2026. On July 27, 2026, Tamarack's Board of Directors declared the third quarter cash dividend of C$0.05 per share, payable on September 30, 2026, to shareholders of record at the close of business on September 15, 2026. This quarterly cash dividend has been declared in accordance with the Company’s dividend policy and is designated as an eligible dividend for Canadian income tax purposes. ExecuƟve Appointment Tamarack is pleased to announce that Mr . Scott Shimek is promoted to Chief Operating Officer. Since joining the Company in 2021, Mr. Shimek has been a key contributor to the operational execution, growth and significant success experienced across the Company’s asset base, most notably the prolific Clearwater play. Mr . Shimek has more than 20 years of oil and gas experience, integrating his diverse technical knowledge into his leadership role at Tamarack. Scott holds a Bachelor of Science in Mechanical Engineering from the University of Alberta and is a member of the Association of Professional Engineers and Geoscientists of Alberta. The Company looks forward to ongoing success under his continued leadership moving forward.
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Investor Call Tamarack will host a webcast at 9:30 AM MDT (11:30 AM EDT) on Tuesday, July 28, 2026, to discuss the Q2 2026 financial results. Participants can access the live webcast through links provided on the Company’s website. An archive of the webcast will also be made available on the Company’s website. About Tamarack Valley Energy Ltd. Tamarack is a corporation engaged in the exploration, development, production and sale of oil and natural gas in the Western Canadian Sedimentary Basin. In 2026, Tamarack transitioned to become a pure-play Clearwater heavy oil producer, currently developing heavy oil positions at Nipisi, Marten Hills and South Clearwater. Tamarack holds an extensive inventory of low-risk, oil development drilling locations and is pursuing enhanced oil recovery upside across the Company’s core asset areas. Tamarack is committed to creating long-term value for its shareholders through sustainable free funds flow generation, financial stability and the return of capital. The Company is publicly traded on the Toronto Stock Exchange under the symbol “TVE”. For more information, visit www.tamarackvalley.ca. For addiƟonal informaƟon, please contact: Brian Schmidt Chief Executive Officer & Founder Tamarack Valley Energy Ltd. Phone: 403.263.4440 www.tamarackvalley.ca Steve Buytels President Tamarack Valley Energy Ltd. Phone: 403.263.4440 www.tamarackvalley.ca Kevin Johnston Chief Financial Officer Tamarack Valley Energy Ltd. Phone: 403.263.4440 www.tamarackvalley.ca Reader Advisories Selected financial and operaƟng informaƟon should be read with Tamarack’s unaudited interim consolidated financial statements and related management’s discussion and analysis for the period ended June 30, 2026, which are available on SEDAR+ at www.sedarplus.ca and on Tamarack’s website at www.tamarackvalley.ca. Notes to News Release 1. See “Specified Financial Measures” . 2. See “Disclosure of Oil and Gas information” . 3. 2026 annual guidance numbers are based on average pricing assumpƟons of: Crude Oil – WTI US$60.00/bbl, Crude Oil – MSW DifferenƟal $US(4.00)/bbl, Crude Oil – WCS DifferenƟal $US(12.75)/bbl, Natural Gas – AECO C$2.75/GJ, Foreign Exchange – USD/CAD 1.35. 4. Oil wellhead deducƟons for grade specific trading differenƟal (ex CHV), blending requirements, quality differenƟal, and pipeline tolls if Tamarack is not markeƟng (lease transacƟons). Disclosure of Oil and Gas InformaƟon Units of measurement For the purpose of calculaƟng unit costs, natural gas volumes have been converted to a boe using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion raƟo of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner Ɵp and does not represent a value equivalency at the wellhead. This conversion conforms with Canadian SecuriƟes Administrators' NaƟonal Instrument 51 101 - Standards of Disclosure for Oil and Gas AcƟviƟes ("NI 51-101"). Boe may be misleading, parƟcularly if used in isolaƟon. Product Types References in this news release to “crude oil” or “oil” refers to light, medium and heavy crude oil product types as defined by NI 51-101. References to “NGL” throughout this news release comprise pentane, butane, propane, and ethane, being all NGL as defined by NI 51-101. References to “natural gas” throughout this news release refers to convenƟonal natural gas as defined by NI 51-101. Clearwater producƟon volumes on a standalone total boe per day basis are comprised of approximately 91% heavy oil, 1% NGLs and 8% natural gas. The Charlie Lake producƟon volumes referenced in this news release on a boe per day basis is comprised of approximately 55% light oil, 12% NGLs and 33% natural gas. Forward Looking InformaƟon This news release contains certain forward-looking informaƟon (collecƟvely referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securiƟes laws. Forward-looking statements are oŌen, but not always, idenƟfied by the use of words such as “budget”, “guidance”, “outlook”, “anƟcipate”, “target”, “plan”, “conƟnue”, “intend” , “consider”, “esƟmate”, “expect”, “may” , “will”, “should”, “could” or similar words (including negaƟves or grammaƟcal variaƟons) suggesƟng future outcomes. More parƟcularly, this news release contains statements concerning: Tamarack’s business strategy, objecƟves, strength and focus; the Company’s exploraƟon and development plans and strategies; run-rate producƟon of >54,000 boe per day (92% liquids); greater capital allocaƟon flexibility to drive higher total shareholder returns across commodity price cycles; expectaƟon of decades of high-quality development runway; allocaƟng more growth capital into the higher-margin Clearwater barrels, together with an elevated commodity price environment, Tamarack expects to generate higher cash returns on invested capital; 2026 outlook and guidance; the Ɵming, amount and allocaƟon of the planned addiƟonal Clearwater capital investments by the Company and planned secondary waterflood recovery iniƟaƟve; uƟlizaƟon of alternaƟve recovery technologies, including thermal; waterflood injecƟon exit rates; anƟcipated percentage of Clearwater oil producƟon under waterflood; forecasted general and administraƟve expenses, income taxes and interest expense for 2026; execuƟng a disciplined capital management strategy and payment of declared dividends. Future dividend payments and share buybacks, if any, and the level thereof, are uncertain, as the Company’s return of capital framework and the funds available for such acƟviƟes from Ɵme to Ɵme is dependent upon, among other things, free funds flow financial requirements for the Company’s operaƟons and the execuƟon of its strategy, fluctuaƟons in working capital and the Ɵming and amount of capital expenditures, debt service requirements and other factors beyond the Company’s control. Further, the ability of Tamarack to pay dividends and buyback shares will be subject to applicable laws (including the saƟsfacƟon of the solvency test contained in applicable corporate legislaƟon) and contractual restricƟons contained in the instruments governing its indebtedness, including its credit facility. The forward-looking statements contained in this document are based on certain key expectaƟons and assumpƟons made by Tamarack, including those relaƟng to: the business plan of Tamarack; execuƟon of the Company’s 2026 budget; the Ɵming of and success of future drilling, conversion, development and compleƟon acƟviƟes; the Ɵming, amount and performance of addiƟonal Clearwater capital investments and secondary waterflood recovery iniƟaƟves; the availability of cash on hand, available credit and future anƟcipated adjusted funds flow to fund planned capital development programs and future acquisiƟons, dividends or share buybacks; the geological characterisƟcs of Tamarack’s properƟes; prevailing commodity prices, price volaƟlity, price differenƟals and the actual prices received for the Company’s products; the realizaƟon of anƟcipated benefits of the Company’s infrastructure, waterflood development program and recent acquisiƟons and divesƟtures; the availability and performance of drilling rigs, faciliƟes, pipelines and other oilfield services; the Ɵming of past operaƟons and acƟviƟes in the
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planned areas of focus; the performance of new and exisƟng wells; the applicaƟon of exisƟng drilling and fracturing techniques; the Company’s ability to secure sufficient amounts of water; prevailing weather and break-up condiƟons; royalty regimes and exchange rates; impact of inflaƟon on costs; the applicaƟon of regulatory and licensing requirements; the conƟnued availability of capital and skilled personnel; the ability to maintain or grow the banking faciliƟes; the accuracy of Tamarack’s geological interpretaƟon of its drilling and land opportuniƟes, including the ability of seismic acƟvity to enhance such interpretaƟon; and Tamarack’s ability to execute its plans and strategies. Although management considers these assumpƟons to be reasonable based on informaƟon currently available, undue reliance should not be placed on the forward-looking statements because Tamarack can give no assurances that they may prove to be correct. By their very nature, forward-looking statements are subject to certain risks and uncertainƟes (both general and specific) that could cause actual events or outcomes to differ materially from those anƟcipated or implied by such forward-looking statements. These risks and uncertainƟes include, but are not limited to: risks with respect to unplanned third party pipeline outages and risks relaƟng to inclement and severe weather events and natural disasters, such as fire, drought and flooding, including in respect of safety, asset integrity and shuƫng-in producƟon; the risk that future dividend payments thereunder are reduced, suspended or cancelled; incorrect assessments of the value of benefits to be obtained from exploraƟon and development programs; that income taxes, general and administraƟve expenses or interest expenses to differ materially from the Company’s expectaƟons; the risk that the Company may not achieve anƟcipated water injecƟon rates, anƟcipated Clearwater oil producƟon or meet the capital investment guidance; the risk that cash on hand, available credit and anƟcipated adjusted funds flow will not be sufficient to fund the Company’s planned capital programs and any future acquisiƟons, dividends and share buybacks; risks associated with the oil and gas industry in general (e.g. operaƟonal risks in development, exploraƟon and producƟon; and delays or changes in plans with respect to exploraƟon or development projects or capital expenditures); the risk that (i) the U.S. and Canadian governments maintain tariffs, increase the rate or scope of tariffs, or impose new tariffs on the import of goods from one country to the other, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restricƟon or prohibiƟon on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed by the U.S. on other countries and responses thereto could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company; the risks related to the renegoƟaƟon of the United States-Mexico-Canada Agreement, resulƟng in changes to trade, tariff or market access terms that may adversely affect the Company; commodity prices, including the impact of the acƟons of OPEC and OPEC+ members; risks relaƟng to reliance on third parƟes, the uncertainty of esƟmates and projecƟons relaƟng to producƟon, cash generaƟon, costs and expenses, including increased operaƟng and capital costs due to inflaƟonary pressures; health, safety, liƟgaƟon and environmental risks; access to capital; and pandemics. In addiƟon, ongoing military acƟons in Iran and elsewhere in the Middle East and between Russia and Ukraine have the potenƟal to threaten the supply of oil and gas from those regions. The long-term impacts of the acƟons between these naƟons remain uncertain. Due to the nature of the oil and natural gas industry, drilling plans and operaƟonal acƟviƟes may be delayed or modified to respond to market condiƟons, results of past operaƟons, regulatory approvals or availability of services causing results to be delayed. Please refer to the most recent annual informaƟon form and management’s discussion and analysis of the Company, for addiƟonal risk factors relaƟng to Tamarack, which can be accessed either on Tamarack’s website at www.tamarackvalley.ca or under the Company’s profile on www.sedarplus.ca. The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligaƟon to update publicly or to revise any of the included statements, except as required by law. The forward-looking statements contained herein are qualified by this cauƟonary statement. This news release contains future-oriented financial informaƟon and financial outlook informaƟon (collecƟvely, “FOFI”) about generaƟng sustainable long-term growth in free funds flow, dividends, share buybacks and debt reducƟon, the 2026 capital budget of $430 - 450 million, guidance and budget pricing and allocaƟon, including prospecƟve results of operaƟons, producƟon (including annual average producƟon of 61,500 – 63,000 boe/day, average oil and natural gas weighƟngs of 88 – 90% , free funds flow, operaƟng costs (including net operaƟng expenses in 2026), balance sheet strength, and components thereof, all of which are subject to the same assumpƟons, risk factors, limitaƟons and qualificaƟons as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further informaƟon about Tamarack’s future business operaƟons. Tamarack and its management believe that FOFI has been prepared on a reasonable basis, reflecƟng management’s best esƟmates and judgments, and represent, to the best of management’s knowledge and opinion, the Company’s expected course of acƟon. However, because this informaƟon is highly subjecƟve, it should not be relied on as necessarily indicaƟve of future results. Tamarack disclaims any intenƟon or obligaƟon to update or revise any FOFI contained in this document, whether as a result of new informaƟon, future events or otherwise, unless required pursuant to applicable law. Readers are cauƟoned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in commodity prices, differences in the Ɵming and allocaƟon of capital expenditures, and variances in average producƟon esƟmates can have a significant impact on the key performance measures included in Tamarack’s guidance. Actual results may differ materially from these esƟmates. Specified Financial Measures This news release includes various specified financial measures, including non-IFRS financial measures, non-IFRS financial raƟos, capital management measures and supplemental financial measures as further described herein. These measures do not have a standardized meaning prescribed by InternaƟonal Financial ReporƟng Standards (“IFRS”) and, therefore, may not be comparable with the calculaƟon of similar measures by other companies. Net operating expenses (Non-IFRS Financial Measure and Non-IFRS Financial Ratio if calculated on a per boe basis) is calculated as operating expenses less processing income. Tamarack generates processing income from third parties that utilize excess capacity at Tamarack’s facilities. If Tamarack has excess capacity at one of its facilities, the Company will seek to process third-party volumes as a means of offsetting a portion of the facility costs. Accordingly, net operating expenses allow Tamarack and others to assess the profitability of field operating results by including the associated income generated from plant operations. Adjusted funds flow (capital management measure) is defined as cash provided by operaƟng acƟviƟes excluding asset reƟrement obligaƟon expenditures, transacƟon costs and changes in non-cash working capital. Asset reƟrement obligaƟon expenditures and transacƟons costs from business combinaƟons both result from the Company’s capital budgeƟng and strategic planning processes, which first considers available adjusted funds flow. Asset reƟrement obligaƟon expenditures vary from period to period depending on capital programs, government regulaƟons and the maturity of the Company’s operaƟng areas. By also excluding changes in non-cash working capital from cash provided by operaƟng acƟviƟes, the adjusted funds flow measure provides a meaningful metric for Tamarack and others by establishing a clear link between the Company's cash flows, income statement and operaƟng netbacks by isolaƟng the impact of changes in the Ɵming between accrual and cash seƩlement dates, which can oŌen be within management’s control. Tamarack uses adjusted funds flow to assess the Company’s financial performance and cash generated from operaƟng acƟviƟes. Free funds flow (capital management measure) is defined as adjusted funds flow less investments in oil and natural gas assets (excluding acquisiƟons and disposiƟons) and the seƩlement of asset reƟrement obligaƟons. Management uƟlizes free funds flow to assess how much cash was generated in excess of the Company’s capital investment and asset reƟrement programs within the same period, which can be uƟlized to reduce debt, fund acquisiƟons or return capital. Net (cash) debt (capital management measure) is calculated as the sum of the Company’s debt, government loans and other, cash, accounts receivable, prepaid expenses and deposits, cross-currency swap liability (asset), assets held for sale (net), accounts payable and accrued liabiliƟes. Tamarack and others uƟlize net debt to assess liquidity and balance sheet strength by aggregaƟng the select financial assets and financial liabiliƟes on the Company’s balance sheet. Available funding is calculated as the sum of undrawn credit capacity under the Company’s credit facility and cash, accounts receivable, prepaid expenses and deposits, cross-currency swap liability (asset), assets held for sale (net), accounts payable and accrued liabiliƟes. Tamarack and others uƟlize available funding to assess the amount of funds that could be available to the Company in the near term to fund capital management iniƟaƟves. OperaƟng netback equals total oil and natural gas sales, including realized gains and losses on commodity hedges, less royalƟes, net operaƟng expenses and transportaƟon expenses. OperaƟng Field Netback equals total oil and natural gas sales, less royalƟes, net operaƟng expenses and transportaƟon expenses. These metrics can also be calculated on a per boe basis, which results in them being considered a non-IFRS financial raƟo. Management considers operaƟng netback and
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operaƟng field netback important measures to evaluate performance by asset area by isolaƟng the impact of corporate and other overhead related expenditures. Please refer to the management’s discussion and analysis for addiƟonal informaƟon relaƟng to specified financial measures including non-IFRS financial measures, non-IFRS financial raƟos and capital management measures. The management’s discussion and analysis can be accessed either on Tamarack’s website at www.tamarackvalley.ca or under the Company’s profile on www.sedarplus.ca. AbbreviaƟons bbl(s) barrel(s) bbls/d barrels per day boe barrels of oil equivalent boe/d barrels of oil equivalent per day NGL natural gas liquids WTI West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade