Tamarack Valley Energy Ltd (TSE:TVE) is a leader in the acquisition, exploration, development, and production of high-quality oil and gas products located in the Western Canadian sedimentary basin. The company is committed to providing investors with substantiated growth and consistent returns by focusing on innovative strategies that leverage operational excellence.
Recently, Bloomberg Ratings reported that shares of Tamarack Valley Energy Ltd have earned a consensus rating of “Buy” from ten brokerages that cover the stock. Three analysts have rated the stock with a buy recommendation, reflecting Tamarack’s continued success in achieving investor confidence through their robust performance in the industry.
The average 12-month price objective among analysts who have covered the stock in the last year is C$6.88, demonstrating optimism for future growth potential.
Moreover, Tamarack Valley Energy holds significant interests in Cardium light oil plays located in various regions such as Wilson Creek/Alder Flats/Pembina and Garrington and Lochend areas throughout Alberta. The company also features Viking light oil resource plays located in Redwater and Westlock within Alberta, as well as Consort area situated southeast of Alberta and Hoosier area southwest of Saskatchewan; Barons Sands light oil plays are located in Penny area southern of Alberta; and heavy oil properties are situated at Hatton area located inside Saskatchewan.
On Friday, shares opened at C$3.74, with a market capitalization value of C$2.08 billion while having a P/E ratio of 4.99 and beta capability of 2.78. Additionally, TVE has current ratios standing at .29 along with its quick ratios standing firmly at .80 – resulting partially because its debt-to-equity belongings stand solidly at an astonishingly high 55.79%.
However, these figures do not eclipse TVE’s remarkable runtime recorded over the years; it boasts outstanding operating revenues outshining numerous competitors continually since its establishment. Although the stock price has fluctuated over time, with a 1-year low of C$3.28 and a high of C$6.48, Tamarack Valley Energy’s diverse portfolio and commitment to sustained growth make it an attractive investment opportunity for investors seeking long-term gains.
In summary, Tamarack Valley Energy Ltd’s latest rating from Bloomberg Ratings is impressive and serves as validation for their operations. Through strategic investments in Cardium and Viking oil plays alongside heavy oil properties in Hatton areas located inside Saskatchewan, the company demonstrates solid financial acumen that could set them apart from peers.
Lastly, despite exhibiting some level of debt saturation compared to competitors with debt-to-equity ratio of 55.79%, TVE still remains a top choice for value investors looking to put money into promising energy stocks related to gas and natural oils.
Tamarack Valley Energy Ltd. Faces Price Fluctuations After Earnings Results, but Remains Committed to Exploration and Expansion
Tamarack Valley Energy Ltd. is currently experiencing price fluctuations with the company’s stock taking a hit from a raft of lower target prices by some equity analysts following the release of its earnings results on March 1st. Five equities analysts have cut their price targets so far, and their downgrade had dropped the firm’s shares down to C$3.86 per share from an average of C$6.10 in January.
Stifel Nicolaus recently analayzed Tamarack Valley Energy and reported that the energy company usually reports weaker than expected quarter earnings, which it blames on rising interest expenses needed to finance expansion and acquisitions costs. The report further stated that despite its disappointing earnings report for the quarter, the company remains committed to exploration and product expansion plans.
CIBC has also weighed into the debate over TVE’s recent fortunes by trimming their year-end 2017 price forecast from C$6 to C$5.50 noting that they expect higher well completion expenses, poor results at two new project areas -Bearspaw and Redwater to drag on netbacks for Q4
March has been a tough month for Tamarack Valley Energy as ATB Capital lowered their price objective from C$7.50 to C$7, while Canaccord Genuity Group reduced it from C$6 to C$5.50.
However, all hope is not lost as Raymond James maintains an “Outperform” rating on TVE’s shares with a reduced price target now pegged at CA $11 (from CA $13). They noted that although there is negative sentiment toward heavy oil production, due in part to pipeline constraints, executives at Tamarack optimistically said they might be able to grow heavy crude production without suffering too much pain once discounts ease.
Tamarack Valley Energy is continuing with its business strategy of acquiring seismic data across its key resource plays to uncover areas with the highest potential geological and economic returns. The company also plans to drill more Viking wells, focusing on its most profitable acreage while taking advantage of lower drilling costs this year.
Despite these challenges from last quarter’s results, Tamarack Valley Energy remains optimistic about its future prospects. It has declared a monthly dividend to be paid to stockholders in April, which could prove to be an excellent opportunity for dividend investors who believe that the heavy oil commodity prices are about to take off. While TVE still figures out how it can mitigate the rising interest expenses due to ongoing expansion plans associated with acquisitions,it remains firm on boosting exploration and product expansion plans which is a good sign of growth for the company in coming times.