A SUSTAINABLE CASH FLOW BUSINESS CORPORATE UPDATE MAY 2021 TSX: PNE
FOUR REASONS TO BUY PINE CLIFF ENERGY STOCK Natural gas is in a strong fundamental market shift of 1 increasing demand and plateauing or decreasing supply. PNE has one of the industrys highest adjusted funds 2 flow sensitivities…
ANALYST COVERAGE Company Analyst Canaccord Genuity Anthony Petrucci Desjardins Capital Markets Chris MacCulloch Haywood Securities Inc. Chris Jones Paradigm Capital Adam Gill Peters & Co. Dan Grager Stifel FirstEnergy Cody…
CORPORATE PROFILE A UNIQUE SUSTAINABLE CASH FLOW MODEL 2021 Production Guidance 18,000 18,500 Boe/d Listing TSX: PNE - % natural gas 91% Market Capitalization(1)(3) 94.2 MM 2021 Capital Guidance 13.0 MM Average Daily Volume(2) 0.50…
EXPERIENCED BOARD AND MANAGEMENT BOARD OF DIRECTORS George F. Fink (Chairman of the Board) Mr. Fink is the Chairman of the Board of Pine Cliff Energy Ltd. (Pine Cliff , PNE, or the Company) and is also the Chief Executive Officer and…
EXPERIENCED BOARD AND MANAGEMENT CONT. Jacqueline R. Ricci Ms. Ricci joined the Board of Directors of Pine Cliff in May, 2020. Ms. Ricci has been a Vice President and Director at J. Zechner Associates, Toronto, Ontario, since 1997,…
UNPRECEDENTED NATURAL GAS FUNDAMENTALS Lower Industry Capex + Lower Rig Counts + Lower Production + Strong Demand = Higher Prices From February 2020 to October 2020, North Americas average rig count dropped In 2020, North American…
NATURAL GAS OUTLOOK NORTH AMERICAN SUPPLY Western Canada Natural Gas Supply U.S. Active Rig Count 2021 Active Western drilling rigs Canadian in the US gas supply is remain near on trend for a historic third straight lows. year of…
NATURAL GAS OUTLOOK NORTH AMERICAN DEMAND US Total Natural Gas Demand Seasonal US LNG Export with Forecast Despite US LNG COVID-19, US export demand for capacity has natural gas risen to over has continued 11 Bcf/d in Q1 to set…
NATURAL GAS OUTLOOK GLOBAL SUPPLY AND DEMAND Global Natural Gas Demand Global LNG Demand Mboe/D Demand for Natural gas consumption LNG continues to continues to increase in climb, practically specifically in every region of…
WHAT WE HAVE BUILT THREE MAJOR OPERATED CORE AREAS 2021 Production Guidance of 18,000 18,500 Boe/d. Weighted 91% towards natural gas. High Working Interest and Operatorship. Production and infrastructure is 85% operated. 80%…
A 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 nine…
ONE OF THE LOWEST BASE PRODUCTION DECLINES Base Decline PNEs asset base has one of the lowest base declines of any Western Canada producer. This results in a longer reserve life index and provides PNE the ability to maintain production…
FLEXIBLE NATURAL GAS PRICE EXPOSURE UNIQUE INFRASTRUCTURE OPTIONALITY Sales volumes can be physically diverted to Saskatchewan and the United States by utilizing three PNE owned CER regulated pipelines. Preserves capability of PNE…
2021 CASH FLOW TORQUE TO NATURAL GAS PRICING 1 (1) (1) Haywood Capital Markets, PNE cash flow based on a production rate of 18,300boe/d for 2021 (March, 2021) PNEs cash flow has one the highest torques to natural gas…
ONE OF THE HIGHEST CASH FLOW SENSITIVITIES TO NATURAL GAS 2021E Cash Flow Torque Source: Desjardins Capital Markets (April 2021) excludes sensitivities to financial and physical natural gas hedges Source: Desjardins Capital…
PNE HISTORICAL EV/DACF MULTIPLES Source: Canaccord Genuity Group Inc. (April 2021) PNE has traded at an average EV/DACF multiple of eight for the past eight years, and is currently trading at one of its lowest historical EV/DACF…
A STRONG BALANCE SHEET AND SHAREHOLDER BASE % of PNE Shareholder and Relationship Shares Held Date and Source Outstanding Robert Disbrow (Reporting Insider 44,605,000 13.26% May 5, 2021 SEDI and Long Term Debt Holder) Alberta…
WHY INVEST IN PINE CLIFF Long life predictable natural gas assets with an industry leading decline rate creates stable, predictable funds flow. One of the strongest per share sensitivities among Canadian energy companies to natural…
APPENDIX 21
FOCUS ON PER SHARE VALUE Predictable Funds Flow Model Low decline and low capital efficiencies form the foundation for a sustainable funds flow model. EXPERIENCED MANAGEMENT Significant Insider Ownership TEAM Interests aligned with…
AN ACTIVE EIGHT YEARS OF ACQUISITIONS TRANSACTION RECORD SINCE JANUARY 2012 500,000,000 Market Cap 11 450,000,000 Share Price 10 2.50 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…
NATURAL GAS REVIEW HEDGING UPDATE PHYSICAL PRICE HEDGING Delivery Quantity (GJ/d) Contractual Terms Delivery /GJ Q2-2021 Q3-2021 Q4-2021 Point May 1, 2021 Oct 31, 2021 AECO 2.44 26,600 26,600 8,867 May 1, 2021 Oct 31, 2021…
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 - 2021 production of…
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…
TWINING PEKISKO INVENTORY Drilled three horizontal wells (One in 2018 and two in 2019). PNE has an extensive 3D and 2D seismic library over the play. 2019 wells achieved a drill, complete, equip and tie-in (DCET) cost of 2.6 MM…
TWINING PEKISKO ECONOMICS 28
EDSON AREA OVERVIEW HIGH IMPACT INVENTORY Q1 - 2021 production of 1,520 Boe/d (62% natural gas), 8% of Pine Cliffs production. PNE currently estimates high quality locations targeting the Bluesky, Ellerslie, Rock Creek, Wilrich,…
HIGH QUALITY EDSON AREA LOCATIONS MULTI ZONE, LIQUIDS RICH LOCATIONS Attractive and predictable high liquids yield production. 55 gross (13.9 net) multi-zoned undrilled locations including 35 gross (8.7 net) unbooked locations and…
SOUTHERN ASSETS AREA OVERVIEW LOW DECLINE, LOW COST PRODUCTION Q1 - 2021 production of 7,144 Boe/d (99.9% natural gas), 39% of Pine Cliffs production. 100% ownership of three CER regulated pipelines delivering gas to Montana and…
ACTIVELY MANAGING ENVIRONMENTAL FOOTPRINT As at March 31, 2021, PNE recorded an asset retirement obligation (ARO) of 231.3 MM (inflated at 2.00% and discounted at 2.30%) on its balance sheet (242.1 MM undiscounted, uninflated). As…
ACTIVELY MANAGING ENVIRONMENTAL FOOTPRINT Pine Cliffs Annual Well Abandonment and Reclamation Expenditures Gross Net 2017 2.5 million 2.4 million 2018 3.0 million 2.7 million 2019 2.1 million 1.9 million 2020 1.7 million 1.5…
METHANE EMISSIONS REDUCTION PROGRAM Pine Cliff Energy Ltd. is proud to have been an early action leader in reducing methane emissions from its operations. Starting in March 2018, Pine Cliff has worked with a third party to inventory…
RESERVE REPORT(1) Summary of Remaining Working Interest Reserves, as of December 31, 2020 Natural Gas and Light, Medium Natural Gas Coal Bed Oil Equivalent and Heavy Oil Liquids Methane Reserve Category MBbl MBbl MMcf MBoe…
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 Camrose…
CORPORATE INFORMATION BOARD OF DIRECTORS HEAD OFFICE WEBSITE George F. Fink (Chairman) 850, 1015 4th Street SW www.pinecliffenergy.com Philip B. Hodge Calgary, Alberta T2R 1J4 Randy M. Jarock Phone: (403) 269-2289 INVESTOR CONTACT…
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