A LOW COST NATURAL GAS CONSOLIDATOR INVESTOR UPDATE DECEMBER 2015 TSX-V: PNE
CORPORATE PROFILE POSITIONED FOR PROFITABLE AND SUSTAINABLE NATURAL GAS GROWTH Listing (1) TSX-V: PNE Market Capitalization(2) 284 MM Average Daily Volume(3) 0.7 MM 52-Week Trading Range 0.86 to 1.90 Shares Issued(4) 305.2 MM Directors…
SUSTAINABLE SHAREHOLDER VALUE CREATION Acquisition Priorities Focused on Value Accretive acquisitions of high-quality natural gas assets offering low operating costs, low decline production, and increasing drilling inventories; nine…
A UNIQUE, COUNTER-CYCLICAL STRATEGY CAPITALIZING ON A LOW COMMODITY PRICE ENVIRONMENT PNE uniquely focused on a low-risk, natural gas asset consolidation strategy in Western Canada Weak commodity prices have reduced industry cash…
SUCCESSFUL EXECUTION TRACK RECORD SINCE JANUARY 2012 488,000,000 Oct 1: 100M Shallow Gas asset 2.67 Market Cap Share Price acquisition 14.1M acquisition of 13.3M acquisition of Sept 23: 60.1M equity offering at additional assets in…
WHAT WE HAVE BUILT THREE MAJOR OPERATED CORE AREAS Base Production of 142,800 mcfe/d or 23,800 boe/d Weighted 92% towards natural gas Low Decline Rate Corporate decline rate on base production…
HISTORY OF ACCRETIVE ACQUISITIONS ACQUISITION METRICS REFLECT VALUE FOCUSED STRATEGY Transaction Metrics Announcement Transaction Value Production P+P Reserves Flowing Barrel P+P Reserves P+P Reserves Transaction Date (million)…
ACQUISITION OF NEW CORE AREA (D EC 1115) GROWS PRODUCTION BY 90% AND RESERVES LIFE INDEX BY 55% Accretive acquisition of natural gas weighted, low decline assets in the Viking and Ghost Pine areas of Central Alberta Adds new core…
STRONG ACQUISITION METRICS (1) ACCRETIVE ACQUISITION WITH STRONG EXPOSURE TO NATURAL GAS PRICES Production (July 2015 average) (1) 11,730 boe/d Natural gas weighting 89% Operating costs 11.20 per boe Royalty rate(2) 11% of revenue…
NEW CORE AREA ASSET OVERVIEW LOW RISK, LOW DECLINE ASSETS WITH SIGNIFICANT UPSIDE(1) Ghost Pine Viking Production (July Average) 5,400 boe/d 6,330 boe/d Natural gas weighting 92% 85% Annual decline rate 9% 14% Net working interest…
SIGNIFICANT LOW RISK DEVELOPMENT SIGNIFICANT UPSIDE POTENTIAL GHOST PINE HORSESHOE CANYON COAL BED METHANE (1) Attractive and predictable low-cost production with long reserve life Over 1,000 gross upside opportunities identified…
SUSTAINABILITY OUR KEY FOCUS STRONG EMPHASIS ON GROWTH OF SUSTAINABLE NATURAL GAS ASSETS CFPS Growth Debt-Adj 2016E vs. Debt-Adj PPS Growth 2016E PNE PNE continues to grow production per share through accretive acquisitions while…
SUCCESSFUL COST REDUCTIONS IN 2015 COMMITTED TO COST REDUCTIONS AND INCREASING EFFICIENCIES IN THE FIELD Realized a 7% decrease in operating expenses per boe since 2012 and a 5% decrease in operating expenses per boe since 2014 alone…
UPDATE: SHALLOW GAS ACQUISITION DEMONSTRATING SUCCESS BY ARRESTING DECLINE + REDUCING OPERATING COSTS Offsetting Production Declines Through Reactivation Shallow gas asset package Acquisition Closed acquired October 2014 Pipeline…
HIGHLY LEVERAGED TO NAT GAS PRICING ONE OF THE HIGHEST FREE FUNDS FLOWS PER SHARE IN THE INDUSTRY Offers one of the highest exposures to movements in natural gas pricing given low operating expenses and overhead, low decline, no…
2016 FOCUS ON FREE FUNDS FLOW ONE OF THE HIGHEST FREE FUNDS FLOWS PER SHARE IN THE INDUSTRY Pine Cliff generates some of the highest free cash flow yield in the industry 2016 Free Cash Yield % to Debt to Cash Flow 2016 Free Cash flow…
Q3 15 PER SHARE VALUE INCREASES Mid-point of Production (boe/d) 2016 Guidance 22,750 25,000 Mid-point of 47% 2015 Guidance 20,000 12,050 15,000 increase in daily production per basic 7,888 10,000 share(1)…
SUSTAINABLE COST STRUCTURE CAPITAL BUDGET IS SUBSTANTIALLY LOWER THAN PROJECTED FUNDS FLOW 2016 capital budget of 10 million, before acquisitions (2015 - 7.5 million, before acquisitions) 2016 production volumes of 22,500 to 23,000…
WHY INVEST IN PINE CLIFF High-quality assets with low operating costs and one of the lowest decline rates in the industry Free cash flow allows for debt repayment in depressed commodity environment Entirely unhedged production allows…
APPENDIX Note: Pine Cliff Energy Ltd. was recognized on Alberta Venture magazines 2015 Fast Growth 50 List. Pine Cliff was recognized in June 2015 as one of The 200 companies by Alberta Oil magazine. Pine Cliff Energy Ltd. was…
BUILDING A FAMILIAR MODEL A CLEAR VISION FOR LONG-TERM GROWTH WITH PROVEN EXPERIENCE Pine Cliff management has a long-term view of value creation, with a counter-cyclical focus to acquire natural gas assets that are non-core to their…
NATURAL GAS OUTLOOK - DEMAND U.S. Gross LNG Exports U.S. Natural Gas Demand Growth in bcf/d Electric Power Sector bcf/d 8.0 5.0 7.2 7.0 4.0 3.5 Forecast 6.0 Forecast 3.0 2.0 5.0 4.6 1.3 1.3 1.0 1.0 1.0 4.0 (0.0) - 3.0…
NATURAL GAS OUTLOOK - SUPPLY U.S. Working Natural Gas in Storage bcf Deviation from average Storage level 5,000 120% 4,000 100% 3,000 80% 2,000 60% 1,000 40% Forecast 0 20% -1,000 0% -2,000 -20% -3,000 -40% -4,000…
RESERVE REPORT (1)(2) Natural Gas (Non- Natural Gas Light and Medium Oil associated and associated) Liquids Total Oil Equivalent Gross Gross Gross Gross Reserve Category: (Mbbl) (MMcf) (Mbbl) (Mboe) Proved Developed Producing…
ANALYST COVERAGE The following analysts provide research report coverage on Pine Cliff: COMPANY ANALYST AltaCorp Capital Patrick ORourke Canaccord Genuity Anthony Petrucci CIBC World Markets Dave Popowich Clarus Securities Inc.…
CORPORATE INFORMATION BOARD OF DIRECTORS HEAD OFFICE STOCK EXCHANGE LISTING Gary J. Drummond 850, 1015 4th Street SW TSX Venture Exchange George F. Fink Calgary, Alberta T2R 1J4 Trading Symbol: PNE Philip B. Hodge Phone: (403) 269-2289…
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