Opinions Eric Nuttall
Tamarack Valley EnergyTVE.TOCOMMENTApr 22, 2024
Stock price when the opinion was issued
As of Nov 13, 2026. Market Open.
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Unlike the Oil Sands, TVE is not allowed to book as many of their reserves upfront. You must invest to water flood, but as time goes on, the returns increase. Ask, what's the cash I'm getting in this quarter? And add atop that the reserves they're booking in that quarter. He expects the Clearwater deal to close.
It has had some exploration success and getting better recovery techniques. They are streamlining what they do. It is getting more interest and hitting new highs. After consolidation it should accelerate again.
Bruce Campbell (2)He's been very happy owning this. It trends up long-term, though the pace has slowed.
Colin Cieszynski(Note: Doesn't own, but he does own HWX and likes the upcoming merger.)
In oil sands, but not one of the major players. Merger consolidates 2 names in the region, should see a lot of cost savings. Merged entity will be a bigger player, grabbing more institutional attention. You can play the merger through either company.
He's done well at a $4 cost. When to sell? Complicated because TVE is buying Headwater. The buying price depends on the price of oil. TVE stock is approaching fair value now with a little upside. Buy on dips.
Eric NuttallManagement has done a spectacular job. Their economics are unbelievable. They can squeeze more oil out by injecting water. He has trimmed some but still holds a lot. He sees further upside - 15 to 20% over the next couple of years at $70 oil. At $80 dollar oil he sees $19 to $20 per share.
Eric Nuttall
Solid team, great execution. Hold, or continue to add to modestly. No reason to sell.
John StephensonLikes it a lot. Continues to focus on what it's good at in the Clearwater. Smaller cap, so expect more growth and more volatility. Stock's not done, potential acquisition target.
Bruce Campbell (2)Using water-flood technology to pick up production. Great growth, expecting 15% production growth in the next 6 months. Generates lots of cash. Recently increased dividend by 25%, increasing share buybacks.
International investors are coming back to Canada for energy. Foresees multiple expansion as well as pricing power. Yield is 1.19%.
David BurrowsLike both, but TOU has been sideways, because they are investing in capex, but turning back to shareholder returns. So, TOU should return to vogue. TVE has been a tear lately but trades at 11x forward PE with good growth. TVE will be a little more volatile. He expects oil to return to the $70s, but it will take time to clear the Strait of Hormuz.
Likes it even more today. Proved that aggregating resources in the most economic play in NA, the Clearwater, has paid off. Water flooding is really working. Potentially 50% more upside in a year, but just let it play out.
Eric NuttallDoing extremely well, a great chart, benefiting from the oil price rally.
Colin CieszynskiLoves it. Very best play in the very best rock in the very best place to be (Canada). Technology and water flooding keeps getting better. Decades of drilling inventory. Don't trim.
Eric Nuttall
They've been aggressive acquiring inventory, perhaps overpaying for a few, but that's now in the past, and they won't be buying more in the near future. They have more than enough drilling inventory, so now they must prove to markets the merits of what they bought and that they've taken care of all their overhangs. He projects 19% forward free cash flow yield--compelling. It's been a frustrating stock, though. Past laggards should perform well this year.