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Tamarack Valley Energy swings to Q4 loss on weaker crude prices

Published: 09:52 12 Mar 2015 EDT

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Tamarack Valley Energy (CVE:TVE), a Canada-based oil and natural gas exploration and production company, swung to a net loss in the fourth quarter, hurt by lower crude prices. Shares dropped.

Net loss was $38.9 million, or $0.50 per diluted share, in the October-to-December quarter, compared with a profit of $10.8 million, or $0.24 per diluted share, in the year-earlier period, the Calgary, Alberta-based company said in a statement today.

Average daily production grew 77 percent to 7,681 boe/d from 4,336 boe/d.

The average sale price dropped 14 percent to $47.9 per boe from $55.72 per boe.

Revenue increased 52 percent to $33.8 million from $22.22. That beat the estimate of one analyst polled by Capital IQ.

The company's cash flow, a key indicator of its ability to pay for drilling and new projects, grew 82 percent to $19.1 million, or $0.25 per diluted share, from $10.5 million, or $0.24 per diluted share.

Capital expenditures increased 22 percent to $26.7 million from $22.0 million.

Shares fell 2.2 percent to C$4.05 at 9:31 a.m. in Toronto. The stock is up 24 percent this year.

The company also said today that it increased proven plus probable (2P) reserves by 78 percent to 33.236 million boe, and proved 1P reserves by 71 percent to 17.135 million boe.

Tamarack said it is on target to average approximately 8,000 boe/d in the first quarter of 2015 while limiting capital expenditures to less than funds from operations. The company has also elected to preserve capital during the first half of 2015 to reduce debt and maintain financial flexibility.

The company is on target to reduce net debt to less than $118 million by the end of the second quarter of 2015, it added.

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