A DYNAMIC CASH FLOW BUSINESS CORPORATE UPDATE DECEMBER 2021 TSX: PNE
THREE REASONS TO BUY PINE CLIFF ENERGY STOCK Global gas fundamentals have highlighted the tightness in global 1 gas/LNG markets. Despite a mild start to the winter season, North American natural gas prices are the highest since…
STRONG NATURAL GAS FUNDAMENTALS North American 2015-2019 Average Rig Count: 1,038. North American Rig Count Continues to December 10, 2021 North American Rig Count: 753 (32% below 2015-2019 Lag Historical Averages average).(1)…
NATURAL GAS OUTLOOK NORTH AMERICAN DEMAND U.S. Total Natural Gas Demand (Bcf/d)(1) U.S. Electricity Demand by Energy Source(2) 100% U.S. demand 24% 25% 28% The 31% 28% 34% 33% fluctuates in 80% 35% 36% 40% 42% composition of the…
NATURAL GAS OUTLOOK NORTH AMERICAN SUPPLY Western Canada Natural Gas Supply(1) North American Natural Gas Rig Count ( of Active Rigs)(2) 600 Strong AECO 5-Yr Range 5-Yr Avg 2020 2021 Active natural prices have 500 gas drilling rigs…
NATURAL GAS OUTLOOK STORAGE IS THE SCORECARD Western Canadian Natural Gas Storage (Bcf)(1) U.S. Natural Gas Storage (Bcf)(2) Western U.S. natural Canadian gas storage natural gas levels are 1% storage is below the 5-yr currently 5%…
NATURAL GAS OUTLOOK GLOBAL SUPPLY AND DEMAND Global Natural Gas Demand (Billion Cubic Meters)(1) Global LNG Demand (Billion Cubic Meters)(2) With the Demand for exception of LNG continues Europe, to climb, natural gas specifically in…
2022 CASH FLOW TORQUE TO NATURAL GAS PRICING 2022 Cash Flow* Torque to AECO(1) 20% 18% + C0.50/Mcf AECO + C0.25/Mcf AECO 18% 16% 14% % Change in CF from Strip 13% 12% 10% 10% 9% 9% 9% 9% 8% 7% 7% 6% 6% 6% 6%…
2022 CASH FLOW TORQUE TO NATURAL GAS PRICING 2022 Cash Flow* Torque to NYMEX(1) PNE AAV LXE TOU CR ARX TPZ PEY NVA SDE FRU ERF VET WCP CNQ TVE CPG HWX CVE IMO SU MEG ATH -100% -50% 0% 50% 100% US3/mmbtu NYMEX…
DEMONSTRATED ABILITY TO GENERATE FUNDS FLOW PNE has generated 32.8mm in Adjusted Funds Flow in 2021, which represented the best three opening quarters to a year in Pine Cliffs ten year history. Sources- PNE share price of 0.62 as 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%…
Fourth Quarter Acquisition Key Highlights All cash acquisition of a private company for 22.2mm gross. The acquisition will add over 1,900 boe/d of low decline base production weighted 72% to natural gas. Acquired assets overlap…
ONE OF THE LOWEST BASE PRODUCTION DECLINES Base Decline Pine Cliffs asset base has one of the lowest base declines of any Western Canada producer. This provides PNE the ability to maintain production or grow with minimal capital.…
A COUNTER-CYCLICAL STRATEGY BUILDING A FREE 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…
CORPORATE PROFILE A UNIQUE SUSTAINABLE CASH FLOW MODEL Listing TSX: PNE 2021 Production Guidance 18,000 18,500 boe/d - % natural gas 91% Market Capitalization(1)(3) 210.5mm 2021 Capital Guidance 21.5mm Average Daily Volume(2)…
A STRONG BALANCE SHEET AND SHAREHOLDER BASE % of PNE Shareholder and Relat ionship Shares Held Dat e and Source Out st anding Robert Disbrow 37,729,500 11.13% December 13, 2021 SEDI (Reporting Insider and Long Term Debt Holder)…
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…
ANALYST COVERAGE Company Analyst Canaccord Genuity Anthony Petrucci Desjardins Capital Markets Chris MacCulloch Haywood Securities Inc. Christopher Jones Paradigm Capital Adam Gill Peters & Co. Dan Grager Stifel FirstEnergy…
APPENDIX 19
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 and is Chair of its Audit Committee. Ms. Ricci has been a Vice President and Director at J. Zechner…
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 11 450,000,000 Market Cap 2.50 Shar e Price 10 9 12 400,000,000 13 14 2.00 350,000,000 PNE Share Price 300,000,000 Market Cap 8…
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…
NATURAL GAS REVIEW HEDGING UPDATE PHYSICAL PRICE HEDGING Fixed Price Cont ract s Physical Delivery Fixed Sale Price Cont ract ual Term Delivery Point Quant it y (GJ/ day) (C/ GJ) Dec 1, 2021 Dec 31, 2021 AECO 2,500 3.54 Dec 1, 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 1.3mm gross (0.95mm net) acres. Q3/21 production of 9,702…
PEKISKO OIL OPPORTUNITY The Pekisko oil pool in Twining is estimated to have over one billion barrels of original oil in place. It is the single largest Pekisko oil accumulation in the Western Canadian Sedimentary Basin (WCSB) to…
TWINING PEKISKO INVENTORY Drilled five horizontal wells to date: One in 2018, two in 2019, and two in 2021. 2021 wells achieved a drill, complete, equip and tie-in (DCET) cost of 2.8 MM. PNE has an acquired an extensive 3D and 2D…
TWINING PEKISKO ECONOMICS Pekisko (3 Hz): Rate-time (bbl/d) Twining Pekisko Economics Type Well 250 Assumptions: * 2.8mm DCE&T Capital IP 365 = 188 boe/d Calendar Day Oil Rate (bbl/d) 200 * 4.00/GJ AECO (less 0.16/GJ Transport)…
EDSON AREA OVERVIEW HIGH IMPACT INVENTORY Q3/21 production of 1,429 boe/d (73% natural gas), 8% of Pine Cliffs production. PNE currently estimates high quality locations targeting the Bluesky, Ellerslie, Rock Creek, Wilrich, and…
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 Q3/21 production of 7,185 boe/d (99.9% natural gas), 39% of Pine Cliffs production. 100% ownership of three CER regulated pipelines delivering gas to Montana and…
ASSET RETIREMENT OBLIGATIONS Pine Cliff (1) Province of Alberta (2) 85.7% of Pine Cliffs wells are producing Gross % of Total Gross % of Total which is considerably higher than the latest Alberta average of 62.1%. Active Wells…
ACTIVELY MANAGING ENVIRONMENTAL FOOTPRINT As at September 30, 2021, PNE recorded an asset retirement obligation (ARO) of 231.0mm (inflated at 2.00% and discounted at 2.30%) on its balance sheet (240.6mm undiscounted, uninflated). As…
ACTIVELY MANAGING ENVIRONMENTAL FOOTPRINT Pine Cliffs Annual Well Abandonment and Reclamation Expenditures Year 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 (1) Light, M edium and Natural Gas Natural Gas and Heavy Oil Liquids Coal Bed M ethane Oil Equivalent Reserve Category (mbbl) (mbbl) (mmcf)…
FUTURE DRILLING OPPORTUNITIES EXTENSIVE INVENTORY OF OIL AND GAS LOCATIONS TO SUPPLY LONG TERM MODEL Unbooked Locations Booked Locations(1) Total Locations Location Gross Net Gross Net Gross Net Camrose Mannville Recomplete 3.0 2.9…
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 Phone: (403) 269-2289 INVESTOR CONTACT Robert B. Fryk…
Loading...
