PINE CLIFF ENERGY LTD. CORPORATE PRESENTATION April 2022 TSX Exchange: PNE
THREE REASONS TO OWN PINE CLIFF ENERGY STOCK Gas fundamentals have highlighted the tightness in global gas/LNG 1 markets. North American natural gas prices are the highest since 2014. Pine Cliff has one of the highest free cash…
DEMONSTRATED ABILITY TO GENERATE FUNDS FLOW PNE ADJUSTED FUNDS FLOW AND STOCK PRICE VS. AECO In 2021 PNE generated 59.1mm in Adjusted Funds Flow, which was the highest in its ten-year history Pine Cliff Energy Ltd. Corporate…
PINE CLIFF ESG OVERVIEW Pine Cliff was an early leader in 2018 with the reduction of methane emissions by retrofitting high methane bleed instrumentation equipment to low bleed or no bleed alternatives. Pine Cliff has averaged an…
UNPRECEDENTED NATURAL GAS FUNDAMENTALS Natural gas, since 2016, is the primary energy source in North America for power Natural Gas Demand Continues to demand. Be Strong in 2022 Alberta natural gas demand exceeded a record of 7.5…
NATURAL GAS OUTLOOK NORTH AMERICAN DEMAND U.S. Total Natural Gas Demand (Bcf/d)(1) Alberta Natural Gas Demand (Bcf/d)(2) Alberta natural Domestic U.S. gas demand demand reached all- fluctuates in time highs this the summer past…
NATURAL GAS OUTLOOK NORTH AMERICAN SUPPLY Western Canada Natural Gas Supply (bcf/d)(1) North American Natural Gas Rig Count ( of Active Rigs)(2) Strong AECO Active natural prices have gas drilling rigs encouraged have increased…
NATURAL GAS OUTLOOK STORAGE IS THE SCORECARD NGTL System Gas Storage (Bcf)(1) U.S. Natural Gas Storage (Tcf)(2) The NGTL system, which U.S. natural reflects gas storage Albertas gas levels are 9% storage, is at below the 5-yr…
NATURAL GAS OUTLOOK GLOBAL SUPPLY AND DEMAND Global Natural Gas Demand (Billion Cubic Meters)(1) Global LNG Demand (Billion Cubic Meters)(2) Natural gas Demand for consumption is LNG continues forecasted to to climb, materially…
WHAT WE HAVE BUILT THREE MAJOR OPERATED CORE AREAS 2022 Production Guidance of 20,000 21,000 boe/d. Weighted 87% towards natural gas. High Working Interest and Operatorship. Production and infrastructure is 85% operated. 80%…
FOURTH QUARTER CORE AREA ACQUISITION KEY HIGHLIGHTS All cash acquisition of a private company for 22.2mm gross. Did not use debt or equity. (Closed December 29, 2021) The acquisition added over 1,900 boe/d of low decline base…
ONE OF THE LOWEST BASE PRODUCTION DECLINES PNE PRODUCTION PROFILE (SOURCE: GEOSCOUT) BASE DECLINE Pine Cliffs asset base has one of the lowest base declines of any Western Canada producer. The low base decline rate provides PNE…
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…
CORPORATE PROFILE A UNIQUE SUSTAINABLE CASH FLOW MODEL Listing TSX: PNE 2022 Production Guidance 20,000 21,000 boe/d - % natural gas 87% Market Capitalization(1)(3) 509.3mm 2022 Capital Guidance 25.5mm Average Daily Volume(2)…
STRONG BALANCE SHEET & SHAREHOLDER BASE ALL debt at February 25, 2021, is term debt and held by three of Pine Cliffs largest shareholders (AIMCo, George Fink and Robert Disbrow) with the balance of 42mm not due until December 31,…
WHY INVEST IN PINE CLIFF PINE CLIFF HAS 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…
ANALYST COVERAGE CompanyCompany Analyst Analyst DesjardinsDesjardins Capital Markets Capital Markets Chris MacCulloch Chris MacCulloch Haywood Securities Haywood Securities Inc. Inc. Christopher Christopher Jones Jones…
APPENDIX Pine Cliff Energy Ltd. Corporate Presentation April 2022 18
EXPERIENCED BOARD & MANAGEMENT BOARD OF DIRECTORS George F. Fink (Chairman of the Board) Mr. Fink is the Chairman of the Board of Pine Cliff Energy Ltd. and is also the Chief Executive Officer and Chairman of the Board of Bonterra…
EXPERIENCED BOARD & 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…
PNE HISTORICAL EV / DACF MULTIPLES 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 multiples Source: Canaccord Genuity Group Inc.…
FOCUS ON VALUE PER SHARE Predictable Funds Flow Model Low decline and low capital efficiencies form the EXPERIENCED foundation for a sustainable funds flow model. MANAGEMENT TEAM Significant Insider Ownership Interests aligned…
ACTIVE 10 YEARS OF ACQUISITIONS TRANSACTION RECORD SINCE JANUARY 2012 500,000,000 11 450,000,000 Market Cap 2.50 Share Price 10 9 12 400,000,000 13 14 2.00 350,000,000 PNE Share Price 300,000,000 8 Market Cap 4 7…
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…
HEDGING UPDATE GAS CONTRACTS Contractual Term Delivery Point Volume Fixed Sale Price (GJ/d) (/GJ) (/mcf) Apr 1, 2022 Oct 31, 2022 AECO 22,500 3.45 3.64 Mar 1, 2022 - Oct 31, 2022 TransGas 4,000 4.62 4.87 Mar 1, 2022 - Oct 31, 2022…
CENTRAL ASSETS 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 (1.0mm net) acres. Q4/21 production of 10,289…
PEKISKO OIL OPPORTUNITY PEKISKO 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…
TWINING PEKISKO INVENTORY Drilled seven horizontal wells to date: One in 2018, two in 2019, and four 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…
TWINING PEKISKO ECONOMICS Pekisko (5 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 * 4.00/GJ AECO (less 0.16/GJ…
EDSON AREA OVERVIEW HIGH IMPACT INVENTORY Q4/21 production of 1,580 boe/d (73% natural gas), 8% of Pine Cliffs production. PNE currently estimates high quality locations targeting the Bluesky and Ellerslie areas with…
HIGH QUALITY EDSON AREA LOCATIONS MULTI ZONE, LIQUIDS RICH LOCATIONS Attractive and predictable high liquids yield production. 38 gross (10.2 net) multi-zoned undrilled locations including 30 gross (7.0 net) unbooked locations and…
SOUTHERN ASSETS AREA OVERVIEW LOW DECLINE, LOW PRODUCTION COST Q4/21 production of 7,187 boe/d (99.9% natural gas), 38% of Pine Cliffs production. 100% ownership of three CER regulated pipelines delivering gas to Montana and…
ETHICAL, SOCIAL AND BUSINESS PRACTICES Corporate Policies: - All employees, head office consultants and field contract operators are required to review and sign off on Pine Cliffs Code of Business Conduct and Ethics Policy,…
HIGH PERCENTAGE OF WELLS ARE ACTIVE Pine Cliff(1) Province of Alberta(2) Gross % of Total Gross % of Total Active Wells 8,259 88.7% 157,000 62.1% 88.7% of Pine Cliffs wells are producing Inactive Wells 1,055 11.3% 97,000 37.9%…
ACTIVELY MANAGING ENVIRONMENTAL FOOTPRINT Combined Alberta and Saskatchewan Well Count Gross(1) Net(1) Producing Wells 8,259 6,312.1 Standing Wells 1,055 708.3 Abandoned Wells(2) 1,191 928.9 Total Wells 10,505 7,949.3 (1) Well…
MANAGING OBLIGATIONS 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 million 2021* 1.9…
RESERVE REPORT(1) SUMMARY OF REMAINING WORKING INTEREST RESERVES, AS OF DECEMBER 31, 2021(1) Light, Medium and Natural Gas Natural Gas and Heavy Oil Liquids Coal Bed Methane Oil Equivalent Reserve Category (mbbl) (mbbl) (mmcf)…
RESERVE REPORT(1) RESERVES NET PRESENT VALUE (DISCOUNTED AT 10%) 300.0 81.9 277.9 250.0 196.0 Net Present Value (mm) 18.0 200.0 10.1 167.9 150.0 100.0 50.0 0.0 Developed Developed Non- Undeveloped Total…
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 Carrot Creek Ellerslie 13.0 3.7 1.0…
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 Robert B. Fryk Phone: (403) 269-2289 INVESTOR CONTACT…
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