Calgary, Alberta–(Newsfile Corp. – May 2, 2023) – Pine Cliff Energy Ltd. (TSX: PNE) (“Pine Cliff” or the “Company“) announces first quarter 2023 financial and operating results, confirmation of monthly dividend, an operational update and information regarding the annual meeting of shareholders.
First Quarter 2023 Highlights
Highlights from the first quarter include:
- generated $19.8 million of adjusted funds flow1 ($0.06 per basic and fully diluted share) for the three months ended March 31, 2023, compared to $32.3 million ($0.09 per basic and fully diluted share) for the three months ended March 31, 2022;
- paid dividends of $11.4 million ($0.03 per basic and fully diluted share) during the three months ended March 31, 2023;
- positive net cash1 increased to $58.1 million at March 31, 2023 from $55.9 million on December 31, 2022;
- generated net earnings of $5.0 million ($0.01 per basic and fully diluted share) for the three months ended March 31, 2023, compared to net earnings of $15.4 million ($0.05 per basic and $0.04 per fully diluted share) for the comparable period in 2022;
- production averaged 20,076 Boe/d2 for the three months ended March 31, 2023, 2% lower than the 20,397 Boe/d3 for the comparable period in 2022; and
- drilled two (1.4 net) North Twining Unit Pekisko oil wells during the quarter.
Confirmation of Monthly Dividend
The Company has approved a monthly dividend of $0.01083 per common share to be paid May 31, 2023, to shareholders of record on May 15, 2023.
Dividends paid on Pine Cliff’s common shares are designated as eligible dividends for Canadian federal income tax purposes. The declaration of dividends is at the sole discretion of the Board of Directors and is evaluated on a regular basis.
Two Pekisko oil wells (1.4 net) were drilled during the first quarter with a third (0.7 net) drilled and rig released April 12, 2023. The three wells were drilled from the same pad location, minimizing surface disturbance, while maximizing cost efficiencies. The three wells (2.1 net) are scheduled to be completed and placed on production before the end of the second quarter with the all in-capital costs per well expected to average $4.0 million ($2.8 million net).
Annual Meeting of Shareholders
Pine Cliff’s Annual Meeting of Shareholders (the “Meeting“) will be held on Tuesday, May 16, 2023 at 11:00 A.M. (Calgary Time) at the offices of Bennett Jones LLP, 4500 Bankers Hall East, 855 2nd Street SW, Calgary, Alberta. A corporate presentation will be provided following the Meeting, which can be found on the Company’s website at www.pinecliffenergy.com.
Financial and Operating Results
|Three months ended March 31,|
|($000s, unless otherwise indicated)||2023||2022|
|Commodity sales (before royalty expense)||52,939||66,180|
|Cash provided by operating activities||22,326||23,871|
|Adjusted funds flow1||19,824||32,307|
|Per share – Basic ($/share)1||0.06||0.09|
|Per share – Diluted ($/share)1||0.06||0.09|
|Per share – Basic ($/share)||0.01||0.05|
|Per share – Diluted ($/share)||0.01||0.04|
|Per share – Basic ($/share)||0.03||–|
|Per share – Diluted ($/share)||0.03||–|
|Positive net cash (net debt)1||58,139||(24,752||)|
|Percent Natural Gas (%)||87%||88%|
|Weighted-average common shares outstanding (000s)|
|Combined sales price ($/Boe)||29.30||36.05|
|Operating netback ($/Boe)1||11.72||19.41|
|Corporate netback ($/Boe)1||10.99||17.60|
|Operating netback ($ per Mcfe)1||1.95||3.24|
|Corporate netback ($ per Mcfe)1||1.83||2.93|
|1 This 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 significant free 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.
For further information, please contact:
Philip B. Hodge – President and CEO
Alan MacDonald – CFO and Corporate Secretary
Telephone: (403) 269-2289
Fax: (403) 265-7488
Notes to Press Release
- See Non-GAAP Measures.
- Comprised of 105,176 Mcf/d natural gas, 1,446 Bbl/d NGLs and 1,101 Bbl/d light and medium oil.
- Comprised of 107,955 Mcf/d natural gas, 1,347 Bbl/d NGLs and 1,057 Bbl/d light and medium oil.
Certain statements contained in this news release include statements which contain words such as “anticipate”, “could”, “should”, “expect”, “seek”, “may”, “intend”, “likely”, “will”, “believe” and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this news release includes, but is not limited to: future capital expenditures, including the amount and nature thereof; future acquisition opportunities including Pine Cliff’s ability to execute on those opportunities; future drilling opportunities and Pine Cliff’s ability to generate reserves and production from the undrilled locations; oil and natural gas prices and demand; expansion and other development trends of the oil and natural gas industry; business strategy and guidance; expansion and growth of our business and operations; maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; risks; Pine Cliff’s ability to generate adjusted funds flow; Pine Cliff’s ability to generate free funds flow; Pine Cliff’s ability to pay a dividend; and other such matters.
All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash provided by operating activities to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control. The foregoing factors are not exhaustive.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur including the reduction in municipal taxes and surface land rentals, or if any of them do, what benefits will be derived there from. Except as required by law, Pine Cliff disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Natural gas liquids and oil volumes are recorded in barrels of oil (“Bbl“) and are converted to a thousand cubic feet equivalent (“Mcfe“) using a ratio of one (1) Bbl to six (6) thousand cubic feet. Natural gas volumes recorded in thousand cubic feet (“Mcf“) are converted to barrels of oil equivalent (“Boe“) using the ratio of six (6) thousand cubic feet to one (1) Bbl. This conversion ratio is based on energy equivalence primarily at the burner tip and does not represent a value equivalency at the wellhead. The terms Boe or Mcfe may be misleading, particularly if used in isolation.
Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of oil, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
This press release uses the terms “adjusted funds flow”, “free funds flow”, “operating netbacks”, “corporate netbacks” and “positive net cash/net debt” which are not recognized under International Financial Reporting Standards (“IFRS“) and may not be comparable to similar measures presented by other companies. These measures should not be considered as an alternative to, or more meaningful than, IFRS measures including net earnings (loss), cash provided by operating activities, or total liabilities. The Company uses these measures to evaluate its performance, leverage and liquidity. Adjusted funds flow is a non-Generally Accepted Accounting Principles (“non-GAAP“) measure that represents the total of funds provided by operating activities, before adjusting for changes in non-cash working capital, and decommissioning obligations settled. Free funds flow is a non-GAAP measure calculated as adjusted funds flow less the Company’s capital expenditures. Positive net cash/net debt is a non-GAAP measure calculated as the sum of trade and other receivables, cash, investments and prepaid expenses and deposits, less trade and other payables and debt. Operating netback is a non-GAAP measure calculated as the Company’s total revenue, less royalties, operating expenses and transportation expenses, divided by the Boe production of the Company. Corporate netback is a non-GAAP measure calculated as the Company’s operating netback, plus interest income, less G&A and interest expense, divided by the Boe production of the Company. Please refer to the Annual Report for additional details regarding non-GAAP measures and their calculation.
The TSX does not accept responsibility for the accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/164576