Tamarack Valley: High Profit Margin, But Wading Through Too Many Risks

2025-10-18 08:05:11 ET

Investment Thesis

I grant Tamarack Valley a hold rating ( OTCPK:TNEYF ) ( TVE:CA ). I am of the opinion that the company could face significant risks that would affect its operations. The first risk is lower oil prices. The U.S. Energy Information Administration (EIA) projects that the Brent oil price will average $51 per barrel in 2026. In addition, the WTI forward curve indicates that market participants are taking long and short positions in WTI oil futures contracts at prices per barrel in the range of $61 to $64 for the upcoming years. Based on these values, I projected Tamarack's earnings before taxes (EBT), suggesting that it will reach CA$138 million in 2029. This value is 34.15% lower than the EBT reported by the company in 2024. Secondly, the company had a reserve life index of 4.83 years, considerably lower than many of its peers....

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