A SUSTAINABLE CASH FLOW BUSINESS INVESTOR UPDATE MAY 2020 TSX: PNE
CORPORATE PROFILE A UNIQUE SUSTAINABLE CASH FLOW MODEL 2020 Production Guidance 18,500 19,000 Boe/d Listing TSX: PNE (4) - % natural gas 91% Market Capitalization(1)(3) 52.4 MM 2020 Capital Guidance 10.2 MM Average Daily Volume(2)…
FOCUS ON PER SHARE VALUE Predictable Cash Flow Model Low decline and low capital efficiencies form the foundation for a sustainable cash flow model EXPERIENCED MANAGEMENT Significant Insider Ownership TEAM Interests aligned with…
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, primarily natural gas asset consolidation strategy in Western Canada with…
WHAT WE HAVE BUILT THREE MAJOR OPERATED CORE AREAS 2020 Production Guidance of 18,500 19,000 Boe/d Weighted 91% towards natural gas High Working Interest and Operatorship Production and infrastructure is 85% operated 80% average…
2020 CASH FLOW TORQUE 2020E Cash Flow Torque (US0.25/mf)(1) (1) Desjardins Capital Markets (January 2020) excludes sensitivities to financial and physical sales contracts PNE is the most sensitive company to AECO pricing in the…
DIVERSIFIED NATURAL GAS PRICE EXPOSURE Flexible Exposure to Multiple Pricing Points Delivered to Dawn, Empress and TEP delivery points in addition to AECO in 2019 2020 estimated price exposure reflects current strength in AECO pricing…
NATURAL GAS REVIEW HEDGING UPDATE Physical Price Hedging GJ/d /GJ 2020/2021 Contractual Terms Delivery Delivery April May June July August September October Point Quantity April 1 Oct 31, 2020 AECO 30,000 1.58 1.58 1.58 1.58 1.58…
TWINING PEKISKO OIL PNE DRILLING UPDATE Drilled three horizontal wells (One in 2018 and two in 2019). The first well (13-33) has generated 2.7 million of adjusted funds flow to April 30, 2020 The second well (4-21) has generated…
FUTURE DRILLING OPPORTUNITIES EXTENSIVE INVENTORY OF OIL AND GAS LOCATIONS TO SUPPLY LONG TERM MODEL Summary of Undrilled Locations Unbooked Locations Booked Locations(1) Total Locations Gross Net Gross Net Gross Net Carrot Creek…
NATURAL GAS OUTLOOK NORTH AMERICAN SUPPLY Western Canada Natural Gas Storage U.S. & Canada Natural Gas Rig Count 2020 Bcf Operating 1000 Western natural gas Canadian 500 900 drilling rigs in CANADA gas 800 the U.S. and storage 2020…
NATURAL GAS OUTLOOK NORTH AMERICAN DEMAND Alberta Natural Gas Demand U.S. Annual LNG Export Capacity (Year End) Bcf/d Bcf/d 8 12 Committed 7 Freeport T3 LNG export Alberta 10 capacity Corpus Christi T1-3 natural gas 6 forecast to…
NATURAL GAS OUTLOOK GLOBAL SUPPLY AND DEMAND Global Changing Dynamics of Supply and Demand for Natural Gas Tcf Global Natural Gas Demand Bcf/d Global LNG Demand Natural gas Demand for consumption LNG continues to continues to…
WHY INVEST IN PINE CLIFF Long life predictable natural gas assets with an industry leading decline rate creates stable, predictable cash flow One of the strongest per share sensitivities among Western Canadian energy companies to…
APPENDIX -18-
AN ACTIVE EIGHT YEARS OF ACQUISITIONS TRANSACTION RECORD SINCE JANUARY 2012 500,000,000 Market Cap 11 450,000,000 Share Price 2.50 10 9 12 400,000,000 13 14 2.00 350,000,000 300,000,000 8 4 7 15 1.50 250,000,000 6 5 3…
CENTRAL ASSETS AREA OVERVIEW PINE CLIFFS LARGEST CORE AREA Gas weighted, low decline assets in the Ghost Pine and Viking areas of Central Alberta Extensive land position of 1.3 MM gross (0.95 MM net) acres Q1 - 2020 production of…
SOUTHERN ASSETS AREA OVERVIEW LOW DECLINE, LOW COST PRODUCTION Q1 - 2020 production of 7,508 Boe/d (mostly natural gas), 39% of Pine Cliffs production 100% ownership of three CER regulated pipelines delivering gas to Montana and…
EDSON AREA OVERVIEW HIGH IMPACT INVENTORY Q1 - 2020 production of 1,725 Boe/d (71% natural gas), 9% of Pine Cliffs production PNE currently estimates high quality locations targeting the Wilrich, Bluesky, Ellerslie, Rock Creek…
HIGH QUALITY EDSON AREA LOCATIONS MULTI ZONE, LIQUIDS RICH LOCATIONS (1) Attractive and predictable high liquids yield production 51 gross (13.1 net) multi-zoned undrilled locations including 31 gross (7.3 net) unbooked locations…
TWINING PEKISKO OIL Oil and gas are trapped in the reservoir close to the subcrop edge (pinch-out). The Pekisko oil pool in Twining, is estimated to have over one billion barrels of original oil in place and is the single largest…
PNE PEKISKO ECONOMICS Pekisko (3 Hz): Rate-time (BBL/D) Twining Pekisko Economics Type Well 250 Assumptions: * M 2,800 DCE&T Capital IP 365 = 188 BOED Calendar Day Oil Rate (BBL/D) 200 * 2.50/GJ AECO (less 0.16/GJ Transport)…
ACTIVELY MANAGING ENVIRONMENTAL FOOTPRINT As at March 31, 2020, PNE recorded an asset retirement obligation (ARO) of 232.5 MM (2.0 MM current and 230.5 MM long-term) on its balance sheet (250.0 MM liability inflated at 2.00% and…
METHANE EMISSIONS REDUCTION PROGRAM Pine Cliff Energy Ltd. is proud to have been an early action leader in reducing methane emissions from our operations. Starting in March 2018, we worked with a third party to inventory all of our…
RESERVE REPORT (1) Summary of Remaining Working Interest Reserves, as of December 31, 2019 Natural Gas and Light, Medium Natural Gas Coal Bed Oil Equivalent and Heavy Oil Liquids Methane Reserve Category MBbl MBbl MMcf MBoe…
ANALYST COVERAGE The following analysts provide research report coverage on Pine Cliff: COMPANY ANALYST Canaccord Genuity Anthony Petrucci Cormark Securities Inc. Amir Arif Desjardins Capital Markets Chris MacCulloch Stifel FE Cody…
CORPORATE INFORMATION BOARD OF DIRECTORS HEAD OFFICE WEBSITE Gary J. Drummond 850, 1015 4th Street SW www.pinecliffenergy.com George F. Fink (Chairman) Calgary, Alberta T2R 1J4 Philip B. Hodge Phone: (403) 269-2289 INVESTOR CONTACT Randy…
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