Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, September 23, 2022

Article Excerpt

TAMARACK VALLEY ENERGY LTD., $3.54, symbol TVE on Toronto, is an oil and gas exploration and production firm in Western Canada. The company focuses on Alberta and Saskatchewan, and its output is 74% oil and 26% gas. On September 12, 2022, the company announced it would pay $1.4 billion in cash and stock to acquire Deltastream Energy Corp. Deltastream is a privately held oil producer operating exclusively in Alberta’s Clearwater oil area. The cash component of the acquisition is $825 million. In addition, Tamarack will pay $300 million over 18 months in quarterly installments of $50 million with 5.75% interest. The acquisition of Deltastream should be a good fit for Tamarack. It solidifies its position in the Clearwater oil play, one of the best-producing areas in North America. The acquisition will add about 23,000 barrels of oil to Tamarack’s output, and also includes over 500 highly prospective drilling sites, In the three months ended June 30, 2022, Tamarack’s average daily production jumped 35.0%, to…

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