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November 2021 Corporate Update – Pine Cliff Energy Ltd.

Pine Cliff Energy Ltd. · Nov 1, 2021 · 40 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 1
    A DYNAMIC CASH FLOW BUSINESS CORPORATE UPDATE NOVEMBER 2021 TSX: PNE
  2. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 2
    THREE REASONS TO BUY PINE CLIFF ENERGY STOCK Global gas fundamentals have highlighted the tightness in 1 global gas/LNG markets. North American natural gas prices have surpassed multi-year highs leading into winter. 2 Pine…
  3. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 3
    STRONG NATURAL GAS FUNDAMENTALS North American 2015-2019 Average Rig Count: 1,038. North American Rig Count Continues to October 29, 2021 North American Rig Count: 710 (32% below 2015-2019 Lag Historical Averages average).(1)…
  4. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 4
    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% 35% 33% 36% fluctuates in 80% 40% 42% composition of the…
  5. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 5
    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…
  6. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 6
    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 4% storage is below the 5-yr currently 5%…
  7. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 7
    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…
  8. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 8
    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%…
  9. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 9
    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…
  10. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 10
    DEMONSTRATED ABILITY TO GENERATE FUNDS FLOW 20.0 7.00 2.00 PNE AFFO (LHS) AECO Indexed Price (RHS) PNE Indexed Price (RHS) 1.80 15.0 6.00 13.3 15.0 11.6 1.60 Adjusted Funds Flow (mm) 11.2 5.00 10.8 1.40…
  11. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 11
    2022 ADJUSTED FUNDS FLOW SENSITIVITIES AECO 5A(1) /mcf 3.00 3.50 4.00 4.50 5.00 5.50 Realized Price(2)(3) /mcfe 3.43 3.89 4.34 4.80 5.26 5.71 Royalties(4) /mcfe (0.20) (0.28) (0.37) (0.48) (0.59) (0.71) (4) Operating Expenses…
  12. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 12
    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%…
  13. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 13
    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.…
  14. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 14
    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…
  15. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 15
    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) 264.4mm 2021 Capital Guidance 21.5mm Average Daily Volume(2)…
  16. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 16
    A STRONG BALANCE SHEET AND SHAREHOLDER BASE % of PNE Shareholder and Relationship Shares Held Date and Source Outstanding Robert Disbrow November 3, 2021 39,809,500 10.86% (Reporting Insider and Long Term Debt Holder) SEDI…
  17. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 17
    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…
  18. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 18
    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…
  19. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 19
    APPENDIX 18
  20. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 20
    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…
  21. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 21
    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…
  22. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 22
    PNE HISTORICAL EV/DACF MULTIPLES 22.0x Current Avg Avg +1 std dev Avg -1 std dev 20.0x Consensus EV/Forward 12 months DACF 18.0x 16.0x 14.0x 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x May-21 May-13 Sep-13…
  23. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 23
    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…
  24. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 24
    AN ACTIVE EIGHT YEARS OF ACQUISITIONS TRANSACTION RECORD SINCE JANUARY 2012 500,000,000 11 Market Cap 450,000,000 Share Price 10 2.50 9 12 400,000,000 13 14 2.00 350,000,000 PNE Share Price Market Cap 300,000,000 8 4…
  25. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 25
    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…
  26. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 26
    NATURAL GAS REVIEW HEDGING UPDATE PHYSICAL PRICE HEDGING Fixed Price Contracts Physical Delivery Fixed Sale Price Contractual Term Delivery Point Quantity (GJ/day) (C/GJ) Nov 1, 2021 Dec 31, 2021 AECO 2,500 3.54 Nov 1, 2021 Dec 31,…
  27. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 27
    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…
  28. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 28
    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…
  29. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 29
    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…
  30. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 30
    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)…
  31. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 31
    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…
  32. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 32
    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…
  33. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 33
    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…
  34. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 34
    ASSET RETIREMENT OBLIGATIONS 85.7% of Pine Cliffs wells are producing Pine Cliff(1) Province of Alberta(2) which is considerably higher than the latest Gross % of Total Gross % of Total Alberta average of 62.1%. Active Wells 7,993…
  35. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 35
    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…
  36. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 36
    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…
  37. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 37
    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…
  38. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 38
    RESERVE REPORT(1) Summary of Remaining Working Interest Reserves, as of December 31, 2020(1) Light, Medium and Natural Gas Natural Gas and Heavy Oil Liquids Coal Bed Methane Oil Equivalent Reserve Category (mbbl) (mbbl) (mmcf)…
  39. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 39
    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…
  40. November 2021 Corporate Update – Pine Cliff Energy Ltd. – slide 40
    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…

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