As we predicted after its $804M Charlie Lake sale, Tamarack (TVE) is consolidating the Clearwater play - announcing an all stock $10B merger with Headwater…

… with HWX shareholders getting warrants in the SpinCo (natural gas + exploration land) to make up the valuation gap. Once closed, the combined entity will produce over 80,000 barrels of heavy oil per day…

… and capture more than $50M of annual synergies, given the two companies have plenty of neighbouring assets.

With no debt used to fund the deal, pro-forma Tamarack sits in a $50M+ net cash position - with over $1.2B of available liquidity to support a 20% dividend hike, continued buybacks…

… and opportunistic M&A, which could involve Rubellite (RBY) given it just sold its natural gas assets for $67M - aligning its much smaller portfolio with Tamarack.

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