A SUSTAINABLE CASH FLOW BUSINESS INVESTOR UPDATE MARCH 2018 TSX: PNE
CORPORATE PROFILE A UNIQUE SUSTAINABLE CASH FLOW MODEL Listing TSX: PNE 2018 Production Guidance 20,000 20,500 Boe/d - % natural gas 95% Market Capitalization(1) 86 MM 2018 Capital Guidance 10.4 MM Average Daily Volume(2) 0.6 MM…
FOCUS ON PER SHARE VALUE PRESERVATION Predictable Cash Flow Model Low decline, low cost and low capital efficiencies form the foundation for a sustainable cash flow model, even at lower commodity prices EXPERIENCED MANAGEMENT TEAM…
A UNIQUE, COUNTER-CYCLICAL STRATEGY BUILDING A CASH FLOW MODEL IN A VOLATILE COMMODITY PRICE ENVIRONMENT PNE has been uniquely focused on a low-risk, low decline, natural gas asset consolidation strategy in Western Canada with nine…
WHAT WE HAVE BUILT THREE MAJOR OPERATED CORE AREAS 2018 Production Guidance of 20,000 20,500 Boe/d Weighted 95% towards natural gas One of the Lowest Decline Rates in the Sector Corporate decline rate on base production of 10%…
DIVERSIFIED NATURAL GAS PRICE EXPOSURE Q1- 2018 Price Exposure Increased Exposure to Multiple Pricing Points Forecast Commenced deliveries to Dawn in November 2017 Dawn Liquids Began AECO 9% 5% Commenced deliveries downstream of…
LOW CORPORATE BREAK EVEN KEY TO PNE CASH FLOW At 1.31/mcf AECO, PNE has one of the lowest corporate break even gas prices in the industry At 1.50/mcf AECO, PNE would expect to generate 10.7 million in annual funds flow from…
CASH FLOW IS THE FOCUS OF THE PNE MODEL SUSTAINABLE CASH FLOW = SUSTAINABLE BUSINESS Annual free cash flow Free cash flow (MM) Free Cash Flow Yield(1) yield(2) 70 90% 80% 60 PNE Stock 70% Price 50 0.25 60% 40 50% 0.50 30…
2018 CAPITAL PROGRAM GUIDANCE CONSERVATIVE CAPITAL SPENDING TO MITIGATE PRODUCTION DECLINE 2018 Capital Budget Allocation (MM) 2018 capital budget of 10.4MM including 1.3MM of abandonment Abandonments spends 1.3 Six gross (1.2…
NATURAL GAS OUTLOOK - SUPPLY Marketed U.S. Natural Gas Production U.S. Natural Gas End-of March Working Inventories Bcf 5,000 4,000 Start of winter 2018 storage US supply 3,000 Total entering the last growth in withdrawals month…
NATURAL GAS OUTLOOK - DEMAND U.S. Annual LNG Export Capacity (Year End) Alberta Natural Gas Demand Forecast bcf/d Forecast 10 Corpus Christi T1&2 7.0 Sabine Pass T5&6 6.0 TA Conversions Committed 8 Freeport T2&3 AER Power LNG…
DEMONSTRATED PER SHARE VALUE GROWTH Production (Boe/d) Reserves (MBoe)(1) 25,000 BOE/D per million shares 80 22,495 21,408 63% 70 80,000 72% 300,000 Daily Production per million shares 20,000 70,000 Production per basic 60…
WHY INVEST IN PINE CLIFF Long life predictable natural gas assets with low operating/corporate costs and an industry leading decline rate creates one of the lowest cash flow break even points Executing on a long-term vision to assemble…
APPENDIX -15-
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…
AN ACTIVE SIX YEARS OF ACQUISITIONS TRANSACTION RECORD SINCE JANUARY 2012 488,000,000 2.70 Market Cap 11 448,000,000 Share Price 10 408,000,000 9 12 2.20 368,000,000 328,000,000 13 14 288,000,000 1.70 8 248,000,000 7…
HISTORY OF ACCRETIVE ACQUISITIONS ACQUISITION METRICS REFLECT DISCIPLINED VALUE FOCUSED STRATEGY (1) Transaction Metrics Announcement Transaction Value Production P+P Reserves Flowing Barrel P+P Reserves P+P Reserves Transaction Date…
RESERVE REPORT (1) Summary of Remaining Oil and Gas Reserves as of December 31, 2017 Light and Natural Gas and Natural Gas Total Oil Medium Oil CBM Liquids Equivalent NPV 10% Gross Gross Gross Gross Reserve Category: (Mbbl)…
FUTURE DRILLING OPPORTUNITIES EXTENSIVE INVENTORY OF LOCATIONS TO SUPPLY LONG TERM MODEL Approximately 17% of PNEs Gross Undrilled Locations(1) undrilled locations are economic at 1,400 lower than 2.25/Mcf AECO(1) 1,200 Six years…
CENTRAL ALBERTA ACQUISITION UPDATE PNES LARGEST ACQUISITION TO DATE PNEs last significant acquisition closed in December 2015 where PNE acquired its Central Alberta core area in the Viking, Camrose and Ghost Pine areas 11,730 Boe/day…
CENTRAL ASSETS AREA OVERVIEW PINE CLIFFS LARGEST CORE AREA Gas weighted, low decline assets in the Ghost Pine and Viking areas of Central Alberta 2017 production of 10,039 Boe/d (95% natural gas), 47% of Pine Cliffs production…
SOUTHERN ASSETS AREA OVERVIEW LOW DECLINE, LOW COST PRODUCTION 2017 production of 9,141 Boe/d (mostly natural gas), 43% of Pine Cliffs production 100% ownership of three NEB regulated pipelines delivering gas to Montana and two to…
EDSON AREA OVERVIEW HIGH IMPACT INVENTORY 2017 production of 2,228 Boe/d (74% natural gas), 10% of Pine Cliffs production Drilled six gross (1.2 net) wells in 2017 Over 30 net, high quality locations targeting the Wilrich,…
HIGH QUALITY EDSON AREA LOCATIONS MULTI ZONE, LIQUIDS RICH LOCATIONS (1) Attractive and predictable high liquids yield production 93 gross (33.3 net) multi-zone undrilled locations of which 25 gross (6.8 net) are booked locations…
ACTIVELY MANAGING ASSET RETIREMENT OBLIGATIONS (ARO) ARO is PNEs future abandonment and reclamation liabilities for our working interest ownership share of wells, facilities, and pipelines Costs are based on audited company…
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 Exchange George F. Fink (Chairman) Calgary, Alberta T2R 1J4 Trading Symbol: PNE Philip B. Hodge Phone: (403)…
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