Tamarack Valley Energy Announces Strong Q4 2025 Results, Significant Growth in Clearwater Reserves and Operational Update
Press Release
Calgary, Alberta – February 25, 2026 – Tamarack Valley Energy Ltd. is pleased to announce its financial and opera ng results for the three months and year ended December 31, 2025, together with the results of the Company’s independent oil and gas reserves evalua on as of December 31, 2025 as prepared by Tamarack’s independent qualified reserves evaluator, McDaniel & Associates Consultants Ltd. Selected financial and opera ng informa on should be read with Tamarack’s audited consolidated financial statements, management’s discussion and analysis and Annual Informa on Form for the year ended December 31, 2025, which are available at www.sedarplus.ca and www.tamarackvalley.ca.
Tamarack has successfully completed its strategic multi-year transformation into a core Clearwater and Charlie Lake producer. 2025 was a tremendous year for the Company, reflecting substantial growth in the profitability of the business from production outperformance, waterflood expansion, improved capital efficiencies, growth in reserves, lower costs and portfolio optimization. For the full year, Tamarack delivered a total return to shareholders of 19%(1), reflecting a combination of production growth, dividends, share buybacks and net debt reduction.
For 2026, Tamarack’s sustaining free funds flow breakeven cost(1) has declined to ~US$35 per barrel WTI (<US$40 per barrel WTI, unhedged) with a corporate production decline rate(2) that is expected to be 22%. With a low-cost structure, low corporate decline rate, low reinvestment requirement and low corporate breakeven oil price, Tamarack is well positioned to continue generating sustainable total returns for shareholders in lower price environments.
2025 Opera onal and Financial Highlights
Produc on – Fourth quarter 2025 produc on averaged 68,635 boe per day, reflec ng a 4% increase over Q4 2024, or 9% excluding the impact of ~4,000 boe per day of non-core produc on divested in mid October. Tamarack’s Clearwater assets delivered 50,049 boe per day in Q4 2025, a 16% increase compared to 43,288 boe per day during same period in the prior year.
Opera ng expenses – Net opera ng expenses per boe(1) declined by 17% year-over-year reflec ng the ongoing impact of
field infrastructure, lower costs from waterflood reinjec on, higher produc on, reduced workovers and por olio op miza on.
Cash flows – In the fourth quarter of 2025, Tamarack delivered cash provided by opera ng ac vi es of $175.6 million, adjusted funds flow(1) of $171.8 million and free funds flow(1) of $70.6 million, or $0.14 per share. For the full year, Tamarack generated free funds flow(1) of $390.1 million or $0.78 per share, a 10% increase from 2024 despite a 14% decline in WTI prices.
Shareholder returns – In Q4, Tamarack repurchased 6.8 million common shares for a total cost of $49.4 million under its share buyback program. For the full year, the Company acquired 36.2 million common shares, or 6.9% of the common share float, for a total cost of $185.3 million (averaging $5.00 per share). Together with base dividends, Tamarack returned $262.3 million to shareholders in 2025 (~$0.52 per share). On February 24, 2026, Tamarack declared a quarterly cash dividend of C$0.04 per share, payable on March 31, 2026, to shareholders of record at the close of business on March 13, 2026.
Reserves & resources growth(2) – In 2025, Tamarack increased proved developed producing reserves by 31% to 90 MMboe, replacing 185% of produc on year-over-year, with a recycle ra o of 5.2x and finding and development costs of $8.09 per boe. Total TPP reserves increased by 18% to 282 MMboe, replacing 274% of produc on. Excluding the impact of acquisi ons and non-core dives tures in 2025, Tamarack’s TPP reserves increased by 30% (replacing 413% of produc on). For the year, Tamarack’s con ngent and prospec ve resources (unrisked) also increased by 8% and 6%, respec vely.
Capital investments – Tamarack invested $99.3 million in the fourth quarter of 2025, drilling 24.0 net Clearwater heavy oil
produc on wells and 6.0 injec on wells to support ongoing expansion of the waterflood. For the full year, Tamarack invested $400.0 million, an 11% reduc on from 2024, primarily reflec ng the impact of declining sustaining capital requirements from strong waterflood performance, capital efficiencies from mul -well pad developments and improved run mes.
Waterflood expansion – Tamarack continues to prioritize low-cost, high-margin waterflood investment opportunities in the core Clearwater development areas in tandem with primary drilling activities. The Company exited 2025 with greater than 40,000 bbl per day of water injection and intends to grow injection rates to 60,000 bbl per day (exit to exit) with more than 35% of Clearwater oil production under waterflood expansion by the end of 2026.
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