Tamarack Valley Energy: 8 Different Insiders Have Purchased Shares This Month

Feb.25.14 | About: Tamarack Valley (TNEYF)

In this article, I will feature one energy stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increased their holdings by more than 10%.

Tamarack Valley Energy (OTC:TNEYF) engages in the identification, evaluation, and operation of resource plays in the Western Canadian sedimentary basin.

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Insider buying during the last 30 days

Here is a table of Tamarack Valley Energy's insider-trading activity during the last 30 days.

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Noralee Bradley Senior Officer Feb 14 11,500 Yes 64,031 shares +21.9%
Ken Cruikshank VP Feb 19 2,500 Yes 112,420 shares +2.3%
GMT Capital Corp. 10% Owner Feb 10-12 500,800 No 6,428,200 shares +8.4%
Niels Gundesen VP Feb 19 5,000 Yes 74,641 shares +7.2%
Ron Hozjan CFO Feb 19 3,800 Yes 11,800 shares +47.5%
Scott Reimond VP Feb 19 4,750 Yes 38,868 shares +13.9%
Kevin Screen VP Feb 19 6,000 Yes 59,350 shares +11.2%
Dean Setoguchi Director Feb 19 5,000 Yes 61,161 shares +8.9%
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There have been 539,350 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Tamarack Valley Energy's insider-trading activity by calendar month.

Month

Insider buying / shares

Insider selling / shares

February 2014 539,350 0
January 2014 0 0
December 2013 0 0
November 2013 0 0
October 2013 95,475 0
September 2013 0 0
August 2013 0 0
July 2013 0 31,900
June 2013 0 50,000

May 2013

0

0

April 2013

12,000 0

March 2013

0

0

February 2013

0 0

January 2013

12,080

0
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There have been 658,905 shares purchased, and there have been 81,900 shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.

Financials

Tamarack Valley Energy reported the third-quarter financial results on November 15 with the following highlights:

Revenue $19.1 million
Funds from operations $10.3 million
Net income $3.7 million
Net debt $57.1 million
Production 3,162 boe/d
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On February 19, Tamarack Valley Energy closed a $60.2 million financing.

News

On January 28, Tamarack Valley Energy announced that it had surpassed its 2013 average production and 2013 exit production guidance as a result of its continued success in the Cardium and Viking. Based on field production estimates for December 2013, the company averaged 4,718 boe/d (approximately 62% liquids), exceeding its exit production guidance rate of 4,200 to 4,300 boe/d.

Outlook

Tamarack Valley Energy's 2014 guidance is as follows:

  • 2014 estimate average production rate of 5,300 to 5,500 boe/d
  • 2014 estimate exit production rate of 6,500 to 6,700 boe/d (60% liquids)
  • Anticipated cash flow of $57 to $59 million

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(Source: Investor presentation)

Competition

Tamarack Valley Energy's competitors include Strategic Oil & Gas (OTCPK:SOGFF), and Manitok Energy (OTC:MKRYF). Here is a table comparing these companies.

Company TNEYF SOGFF MKRYF
Market Cap: 252.29M 144.35M 172.99M
Qtrly Rev Growth (yoy): 0.71 0.64 0.48
Revenue: 53.79M 64.00M 57.41M
EBITDA: 31.36M 14.48M 29.42M
Operating Margin: 0.09 -0.26 0.10
Net Income: 1.53M -18.73M 2.93M
EPS: 0.05 -0.10 0.04
P/E: 164.90 N/A 54.79
P/S: 4.69 2.20 3.09
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Tamarack Valley Energy's market cap has been adjusted to the February offering. Tamarack Valley Energy sold 14,000,000 shares at the offering. As of February 25, Tamarack Valley Energy had 60,170,000 shares outstanding, which gives the company a market cap of $252.29 million. Tamarack Valley Energy has the fastest revenue growth among these three companies.

Here is a table of these competitors' insider-trading activities this year.

Company Insider buying / shares Insider selling / shares
SOGFF 5,573,000 0
MKRYF 14,300 50,000
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Strategic Oil & Gas has also seen intensive insider buying during the last 30 days.

Conclusion

There have been eight different insiders buying Tamarack Valley Energy, and there have not been any insiders selling Tamarack Valley Energy during the last 30 days. Four of these eight insiders increased their holdings by more than 10%. Tamarack Valley Energy's management and board own 7% of the company.

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(Source: Investor presentation)

The insiders purchased their shares at $3.91 (C$4.30) in the February offering. I believe Tamarack Valley Energy could be a good pick at $3.90 based on the intensive insider buying.

Disclosure: I am long SOGFF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.