A VALUE DRIVEN FOCUS INVESTOR UPDATE NOVEMBER 2014 TSX-V: PNE
CORPORATE PROFILE MARKET CAPITALIZATION NOW 390 MILLION(1) Listing TSX-V: PNE Average Daily Volume(2) 1.1 million 52-Week Trading Range 0.96 to 2.13 Shares Issued(3) 233.5 million Directors and Officers Ownership(4) 15.4% 2014 Production…
A VALUE DRIVEN FOCUS Long-term view of Balance sheet strength sustainable shareholder gives us flexibility for future value creation, with a focus to transactions acquire strong assets at We have completed four accretive valuations…
A UNIQUE, COUNTER-CYCLICAL STRATEGY BUILDING A FAMILIAR MODEL Pine Cliffs Chairman and largest shareholder, George Fink, served the same roles with both Bonterra Energy and Comaplex Minerals Four out of five of Pine Cliffs board of…
KEY MILESTONES A TRACK RECORD OF SUCCESSFUL EXECUTION SINCE JANUARY 2012 Oct 1: Closed Shallow Gas 488,000,000 Market Cap Share Price 2.67 Closed acquisition of Asset acquisition for 100M Realized its security and Sept 23: Closed…
INNOVATIVE & ACCRETIVE ACQUISITIONS 100 BOE/D TO 12,000 BOE/D IN LESS THAN THREE YEARS Transaction Metrics PNE Price at Transaction Announcement Transaction Production P+P Flowing P+P Announcement Date Date (MM) (boe/d) (mmboe)…
OCT. 1 SHALLOW GAS ACQUISITION STRATEGIC FIT WITHIN CURRENT CORE AREA OF SOUTHERN AB AND SK Purchase price of 100 million, prior to adjustments Closed October 1, 2014 with an effective date of July 1, 2014 Materially accretive to Pine…
HIGHLIGHTS OF ACQUISITION (1) ACCRETIVE ACQUISITION WITH STRONG LEVERAGE TO NATURAL GAS PRICES Production (May 2014 average) 2) 5,300 boe/d Natural gas weighting 100% Operating costs 8.54 per boe Royalty rate 8% of revenue Low decline…
Q3 UPDATE: INCREASED PER SHARE VALUE Mid-point of Sales Volumes (boe/d) 2014 Guidance 7,700 8,000 5% 6,810 7,000 6,443 6,276 6,371 5,784 6,000 5,000 4,335 increase in daily 4,000 production per share(1) 3,000 2,536 2,000 972…
TWO MAJOR OPERATED CORE AREAS WHAT WE HAVE BUILT Corporate decline rate on our base production of approximately 15% Base production of 12,000 boe/d Liquids rich drilling upside in the Carrot Creek/Edson area -10-
SOUTHERN ASSETS SHALLOW GAS CORE AREA Strong Cash Flow Leverage to Natural Gas Prices Low Cost Production Low Decline Rate Multi-Zone Area Production from Cretaceous Milk River, Medicine Hat and Second White Specks High Working…
CARROT CREEK/EDSON MULTI-ZONE CORE AREA Multi-Zone Area Targeting Fernie Sand, Gething/Ellerslie, Lower Mannville, Notikewin, Ostracod, Rock Creek, Viking and Wilrich Average Working Interest 60%; Production is 70% operated…
BUILDING A STRONG PLATFORM ASSEMBLING A PORTFOLIO OF HIGH-QUALITY PROPERTIES FOR LONG-TERM VALUE Continues to look like a buyers market for natural gas assets Markets are rewarding companies for focused asset portfolios, so sale of…
SIGNIFICANT FREE FUNDS FLOW A combination of low decline assets and low 2015 Free Funds Flow as a % of capital spend and overhead costs (debt, Enterprise Value operating and general and administrative Excluding Dividend Including…
HIGHLY LEVERAGED TO NAT GAS PRICING Pine Cliff is one of the highest leveraged companies to increases in natural gas pricing as a result of low operating expenses and overhead, low decline, no hedging and minimal capital spending…
A CONTRADICTORY RELATIONSHIP PINE CLIFFS SHARE PRICE HAS HISTORICALLY INCREASED IN PERIODS OF DEPRESSED NATURAL GAS PRICING DUE TO ACQUISITIONS PNE Nymex Southern AB/SK Acquisition and Carrot Creek /Edson Acquisition Southern…
NATURAL GAS OUTLOOK DEMAND U.S. Gross LNG Exports U.S. Natural Gas Demand Growth in Electric bcf/d Power Sector bcf/d 5.0 5.0 4.7 4.1 4.5 4.0 Forecast 4.0 3.0 Forecast 2.4 3.5 2.1 1.7 2.0 3.0 1.3 1.0 2.5 2.2 - 2.0 -0.4…
NATURAL GAS OUTLOOK SUPPLY U.S. End of October Storage Levels Est. Daily Western Canada Storage Levels bcf bcf 4,000 3,929 3,900 3,866 3,816 3,820 3,787 3,800 3,700 3,600 3,571 Forecast 3,500 3,400 3,300 2012 2013…
2014 PLANS AND GUIDANCE CAPITAL BUDGET IS SIGNIFICANTLY LESS THAN PROJECTED CASH FLOW Capital Budget of 13.6 million December 31, 2014 exit rate production of 11,900 to 12,100 boe per day Use monthly funds flow to repay debt drawn for…
WHY INVEST IN PINE CLIFF Balance sheet strength allowing flexibility for future transactions Proven track record of delivering superior long-term results for shareholders High-quality assets with low operating costs and one of the…
APPENDIX ANALYST COVERAGE The following analysts provide research report coverage on Pine Cliff: COMPANY ANALYST AltaCorp Capital Patrick ORourque Canaccord Genuity Anthony Petrucci Clarus Securities Inc. Robert Par FirstEnergy…
CORPORATE INFORMATION BOARD OF DIRECTORS HEAD OFFICE STOCK EXCHANGE LISTING Gary J. Drummond 850, 1015 4th Street SW TSX Venture Exchange George F. Fink Calgary, Alberta T2R 1J4 Trading Symbol: PNE Philip B. Hodge Phone: (403) 269-2289…
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