Calgary, Alberta–(Newsfile Corp. – November 9, 2022) – Pine Cliff Energy Ltd. (TSX: PNE) (“Pine Cliff” or the “Company“) announces third quarter financial results, dividend increase and provides an operational update.
Third Quarter 2022 Highlights
Pine Cliff’s adjusted funds flow1 of $34.9 million generated during the third quarter was the second highest quarterly adjusted funds flow1 for the Company since inception, only surpassed by the $55.8 million generated during the second quarter of 2022. Adjusted funds flow1 for the nine months ended September 30, 2022, totaled $123.0 million.
Highlights from the third quarter include:
- generated $34.9 million ($0.10 per basic and fully diluted share) and $123.0 million ($0.36 per basic and $0.34 per fully diluted share) of adjusted funds flow1 for the three and nine months ended September 30, 2022, compared to $13.3 million ($0.04 per basic and fully diluted share) and $32.8 million ($0.10 per basic and $0.09 fully diluted share) for comparable periods in 2021;
- generated net earnings of $18.6 million ($0.05 per basic and per fully diluted share) and $84.3 million ($0.24 per basic and $0.23 per fully diluted share) for the three and nine months ended September 30, 2022, compared to net earnings of $2.3 million ($0.01 per basic and fully diluted share) and net earnings of $0.9 million ($0.00 per basic and fully diluted share) for comparable periods in 2021;
- paid dividends of $9.9 million ($0.01 per common share per month) during the three months ended September 30, 2022;
- was debt free at September 30, 2022 with positive net cash of $35.1 million;
- production volumes for the three and nine months ended September 30, 2022 were 21,276 Boe/d2 and 21,004 Boe/d3, 16% and 15% higher respectively than comparable periods in 2021;
- completed a summer drilling program that saw Pine Cliff drill four gross (2.8 net) operated Pekisko horizontal oil wells, of which three gross (2.1 net) were on production by the end of the third quarter; and
- participated in the drilling, completion and tie-in of five gross (0.9 net) non-operated natural gas wells in Edson.
The Company’s Board of Directors (the “Board“) has approved the declaration and payment of a regular monthly dividend in an amount of $0.01083 per common share, commencing December 2022, an increase of 8.3%.
Dividends paid on Pine Cliff’s common shares will be designated as “eligible dividends” for Canadian federal income tax purposes. The declaration of dividends is at the sole discretion of the Board and will be evaluated on a regular basis.
2022 Production and CAPEX Guidance Update
The Board has approved an increase in the 2022 capital expenditure budget from $29.5 million to $31.5 million. The increase reflects one additional gross (0.36 net) non-operated Edson natural gas well to be drilled during the fourth quarter.
Pine Cliff has narrowed its 2022 annual production guidance to a range of 21,000 to 21,250 Boe4 per day.
The average gross IP 30 productivity rates for the three gross (2.1 net) North Twining Unit (“NTU“) Pekisko oil wells that came on production during the third quarter was 695 Boe/d5 per well.
Financial and Operating Results
|Three months ended
|Nine months ended
|($000s, unless otherwise indicated)|
|Commodity sales (before royalties)||72,674||39,890||229,280||109,572|
|Cash flow from operating activities||42,258||12,411||116,661||29,053|
|Adjusted funds flow1||34,883||13,333||123,006||32,827|
|Per share – Basic ($/share)1||0.10||0.04||0.36||0.10|
|Per share – Diluted ($/share)1||0.10||0.04||0.34||0.09|
|Per share – Basic ($/share)1||0.05||0.01||0.24||0.00|
|Per share – Diluted ($/share)1||0.05||0.01||0.23||–|
|Positive net cash (net debt)1||35,068||(41,413||)||35,068||(41,413||)|
|Percentage natural gas (%)||86%||91%||87%||91%|
|Weighted-average common shares outstanding (000s)|
|Combined sales price ($/Boe)||37.13||23.67||39.99||22.01|
|Operating netback ($/Boe)1||18.66||9.22||22.88||8.21|
|Corporate netback ($/Boe)1||17.82||7.92||21.46||6.59|
|Operating netback ($ per Mcfe)1||3.11||1.54||3.81||1.37|
|Corporate netback ($ per Mcfe)1||2.97||1.32||3.58||1.10|
1This is a non-GAAP measure, see “NON-GAAP Measures” for additional information.
About Pine Cliff
Pine Cliff is a natural gas and oil company with a long-term view of creating shareholder value. Pine Cliff’s current focus is on acquiring, developing and operating long life assets that generate adjusted funds flow that allows for capital to be returned to shareholders in the form of a dividend. Further information relating to Pine Cliff may be found on www.sedar.com as well as on Pine Cliff’s website at www.pinecliffenergy.com.