The Globe and Mail reports in its Thursday, Sept. 10, edition that Desjardins Securities analyst Robert Mann reaffirmed Tamarack Valley Energy as his "preferred mid-cap producer" after its $10-billion all-stock merger with Headwater Exploration. The Globe's David Leeder writes that under the proposed deal, Headwater shareholders will receive one share of Tamarack for each Headwater common share they hold. Tamarack shareholders will own 66.5 per cent of the combined company, while Headwater shareholders will own 33.5 per cent. Mr. Mann says in a note: "The transaction creates a differentiated large-cap Clearwater producer that combines meaningful scale, a net cash balance sheet, a targeted 10- to 12-per-cent annual growth profile, a 15-per-cent pro forma corporate decline rate -- trending toward management's long-term 12-per-cent target." Mann has reaffirmed his "buy" call for Tamarack. He gave his share target a 50-cent boost to $16.50. Analysts on average target the shares at $17. Mr. Mann adds, "Pro forma under futures pricing, Tamarack trades at approximately 6.5 times 2027 estimated EV/DACF [enterprise value to debt-adjusted cash flow] and offers an 8-per-cent free cash flow yield (enterprise value basis)."