A LOW COST NATURAL GAS CONSOLIDATOR INVESTOR UPDATE MARCH 2016 TSX: PNE
CORPORATE PROFILE POSITIONED FOR PROFITABLE AND SUSTAINABLE LOW RISK NATURAL GAS GROWTH Listing TSX: PNE Market Capitalization(1) 232 MM (2) Average Daily Volume 0.7 MM 52-Week Trading Range 0.70 to 1.65 Shares Issued(3) 305.6 MM…
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 2.70 Market Cap 448,000,000 12 Share Price 11 408,000,000 10 13 2.20 368,000,000 328,000,000 14 288,000,000 1.70 9 248,000,000 8 4 7 208,000,000 6 3 5…
WHAT WE HAVE BUILT THREE MAJOR OPERATED CORE AREAS Base Production of over 23,000 boe/d Weighted 92% towards natural gas Low Decline Rate Corporate decline rate on base production…
HISTORY OF ACCRETIVE ACQUISITIONS ACQUISITION METRICS REFLECT DISCIPLINED VALUE FOCUSED STRATEGY Transaction Metrics (1) Announcement Transaction Value Production P+P Reserves Flowing Barrel P+P Reserves P+P Reserves Transaction Date…
NEW CORE AREA ASSET OVERVIEW DEC 11 15 ACQUISITION ADDS NEW CORE AREA AND GROWS PRODUCTION BY 90% Significantly accretive on cash flow, production and reserves Decreases corporate break-even point to less than 2.00/mcf Ownership in…
SIGNIFICANT LOW RISK DEVELOPMENT SIGNIFICANT UPSIDE POTENTIAL GHOST PINE HORSESHOE CANYON COAL BED METHANE Attractive and predictable low-cost production with long reserve life Over 1,000 gross upside opportunities identified 515…
EMERGING COLORADO SHALE PLAY(1) SIGNIFICANT UPSIDE POTENTIAL COLORADO SHALE(1) Industry was drilling this area using horizontal drilling technology in 2014 138 Tier 1 locations with over 4m of net pay with projected 20% rates of…
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 continues to grow production, reserves and cash flow per share through accretive…
HIGHLY LEVERAGED TO NAT GAS PRICING BUILT FOR SUSTAINABILITY IN A VOLATILE COMMODITY PRICE ENVIRONMENT PNE offers one of the highest exposures to movements in natural gas pricing given low operating expenses and overhead, low decline,…
COST REDUCTIONS CONTINUED IN 2015 COMMITTED TO COST REDUCTIONS AND INCREASING EFFICIENCIES IN THE FIELD Realized a 8% decrease in operating expenses per boe since 2012 and a 6% decrease in operating expenses per boe since 2014 alone…
UPDATE: 2014 SHALLOW GAS ACQUISITION DEMONSTRATING SUCCESS BY ARRESTING DECLINE + REDUCING OPERATING COSTS Offsetting Production Declines Through Operational Shallow gas asset package Improvements and Reactivation Acquisition…
DEMONSTRATED PER SHARE VALUE GROWTH Production (boe/d)Mid-point of Reserves (Mboe)(2) 2016 Guidance 25,000 80 22,750 80,000 300,000 BOE/D per million shares 70 39% 70,000 72% 250,000 Daily Production per million shares…
SUSTAINABLE COST STRUCTURE 2016 capital budget of 10 million, before acquisitions (2015 - 7.3 million on 25.8 million cash flow; 2014 - 11.1 million on 39.0 million cash flow) 2016 production guidance of 22,500 to 23,000 boe/d Ongoing…
NATURAL GAS OUTLOOK - DEMAND U.S. Natural Gas Demand Growth in U.S. Annual LNG Exports Electric Power Sector bcf/d bcf/d 9.0 Forecast 8.2 5.0 4.0 Forecast 8.0 6.5 3.0 Coal to gas 7.0 LNG started shifting 6.0 2.0 shipping…
NATURAL GAS OUTLOOK - SUPPLY Monthly Dry Shale Gas Production U.S. December HDDs 1931-2015 bcf/d 50 HDDs 45 Marcellus (PA,WV,OH & NY) 1,200 40 Haynesville (LA & TX) Short term Natural gas Eagle Ford (TX) 1,000 supply 35…
WHY INVEST IN PINE CLIFF High-quality assets with one of the lowest operating costs and lowest decline rates One of the strongest exposures to natural gas price improvements Proven track record of delivering superior long-term…
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…
RESERVE REPORT (1) Summary of Remaining Oil and Gas Reserves as of December 31, 2015 Natural Gas and Coal Bed Natural Gas Light , Medium and Heavy Oil Methane Liquids Total Oil Equivalent Gross Gross Gross Gross Reserve Category:…
ARO AND LLR With increasing attention on future abandonment liabilities in the oil and gas industry, it is important for investors to know how companies intend to manage their future asset retirement obligations. Two key acronyms to…
PNE and ARO Over 85% of PNE Well Count Are Producing Wells Producing Well Count By Year* Gross Net Percent of Producing Wells 7,000 120% Net PNE Producing Wells Producing Wells 8,871 6,281 6,000 100% Standing Wells 1,492…
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.…
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