Tenaz Energy

Position Statement: Tenaz Energy Corp.

Tenaz Energy Corp. is a Canadian-based energy company specializing in the acquisition, sustainable development, and operation of oil and natural gas assets. With a dual focus on domestic projects in Canada and international operations in the Netherlands, Tenaz is strategically positioned to deliver strong financial performance and value to shareholders.

Core Investor Updates with Metrics:

  1. Revenue Growth and Stability:
    1. Trailing Twelve Months (TTM) Revenue: CAD 62.30 million (+25.27% YoY).
    1. Year-to-Date (YTD) Revenue: CAD 46.72 million for the nine months ending September 30, 2024, compared to CAD 43.59 million for the same period in 2023 (+7.2% YoY growth).
    1. Tenaz has shown consistent revenue growth, reflecting its ability to generate reliable returns even during market volatility.
  2. Strategic Financing:
    1. The senior unsecured notes offering in November 2024 raised significant capital, providing liquidity for continued operational scaling.
    1. Financial leverage positions Tenaz to fund new projects without significantly diluting shareholder equity.
  3. Operational Expansion in the Netherlands:
  4. The acquisition of NAM Offshore B.V. in July 2024 expands Tenaz’s offshore gas production. This aligns with the increasing demand for natural gas in Europe as a transitional fuel amid decarbonization efforts.
  5. The Netherlands portfolio includes interest in Noordgastransport B.V., which operates one of the region’s largest gas gathering and processing networks, offering an operational advantage over competitors lacking such infrastructure.
  6. Canadian Operations:
    1. The Leduc-Woodbend project targets semi-conventional oil in Alberta. This focus on high-margin resource plays contributes to predictable cash flows and robust production performance.

What Makes Tenaz Unique:

  1. Operational Metrics as Differentiators:
    1. Tenaz’s 25.27% YoY revenue growth surpasses many mid-cap energy peers, reflecting its efficient acquisition and integration strategy.
  2. Strategic Market Alignment:
    1. The company’s presence in Europe positions it advantageously to benefit from growing natural gas demand amid the region’s energy transition. Its offshore gas production in the Netherlands directly addresses the EU’s increasing reliance on domestic and nearby energy sources.
  3. Infrastructure Ownership:
    1. Interest in Noordgastransport B.V. ensures access to one of the largest gas gathering and processing networks in the Dutch North Sea. This reduces reliance on third parties and enhances profitability—a significant advantage over competitors like Vermilion, which lacks similar infrastructure in Europe.

Summary:

Tenaz Energy is positioned as a rapidly growing mid-cap energy company with CAD 62.30 million in TTM revenue (+25.27% YoY) and a strategic portfolio spanning high-margin oil plays in Alberta and offshore gas assets in the Netherlands. Its focus on free cash flow, efficient cost management, and targeted acquisitions sets it apart from peers.

By aligning its operations with market trends such as European natural gas demand and low-cost domestic oil production, Tenaz provides an attractive investment opportunity with superior growth metrics, efficient operations, and strategic geographic positioning. The company’s unique ownership of critical infrastructure further bolsters its competitive edge, ensuring lower costs and higher margins relative to others in the space.

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