Pine Cliff Energy reported its Q4 on March 7th. We were taking a look at some BOE Intel charts, and some interesting things jumped out at us. For starters, Pine Cliff is a bit of a unique company. It’s based on an acquisition model, has a very low decline rate, is natural gas focused, and doesn’t spend a lot of money on the drill bit. So what jumped out at us? This chart.
It might not look like much at first glance, but that wedge of green (oil production) and purple (NGLs/Condensate) has grown. Some of that is the result of an acquisition done in Q4 2021 (~1,900 BOE/d including ~440 bbl/d of oil and ~110 bbl/d of NGLs), but the company has also drilled some interesting Pekisko oil wells that have allowed oil volumes to grow. The result has been steady growth of oil volumes and total liquids volumes over the last couple of years (BOE Intel charts below).
While Pine Cliff is never going to drill a ton of these Pekisko wells given the acquisition model, the company does have 4 planned in 2023 after 4 in 2022. You can see the location of 2022’s 4 Pekisko spuds on BOE intel below, as well as on Petro Ninja here. Having these oily wells in inventory will be a nice fall back if natural gas prices weaken in the summer.
Big picture, the company is in a great financial position after paying down all of its debt and then some, with a cash position of slightly over $54 million at the end of Q4/22.
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