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Pine Cliff Energy reported Q3 2024 financial results with adjusted funds flow of $8.1 million ($0.02 per share), down from $17.1 million in Q3 2023. Production averaged 22,546 Boe/d, 8% higher year-over-year, despite temporary impacts from maintenance-related outages. The company reported a net loss of $6.9 million compared to net income of $4.2 million in Q3 2023. Pine Cliff has lowered its 2024 capital spending guidance to $12.0 million from $17.5 million, while maintaining production guidance at 23,250-23,750 Boe/d. The company has hedged 44% of natural gas production at $2.77/Mcf and 51% of crude oil production at $100.79/Bbl through Q4 2024.
Pine Cliff Energy ha riportato i risultati finanziari del terzo trimestre 2024 con flusso di fondi rettificato di 8,1 milioni di dollari (0,02 dollari per azione), in calo rispetto ai 17,1 milioni di dollari nel terzo trimestre 2023. La produzione ha avuto una media di 22.546 Boe/giorno, con un aumento dell’8% rispetto all’anno precedente, nonostante impatti temporanei legati a interruzioni per manutenzione. L’azienda ha riportato una perdita netta di 6,9 milioni di dollari rispetto a un utile netto di 4,2 milioni di dollari nel terzo trimestre 2023. Pine Cliff ha abbassato le previsioni di spesa in capitale per il 2024 a 12,0 milioni di dollari rispetto ai 17,5 milioni di dollari precedentemente stimati, mantenendo però le previsioni di produzione tra 23.250 e 23.750 Boe/giorno. L’azienda ha coperto il 44% della produzione di gas naturale a 2,77 dollari/Mcf e il 51% della produzione di petrolio greggio a 100,79 dollari/Bbl fino al quarto trimestre 2024.
Pine Cliff Energy informó los resultados financieros del tercer trimestre de 2024 con flujos de fondos ajustados de 8.1 millones de dólares (0.02 dólares por acción), en comparación con los 17.1 millones de dólares en el tercer trimestre de 2023. La producción promedió 22,546 Boe/día, un 8% más que el año anterior, a pesar de los impactos temporales debido a apagones por mantenimiento. La compañía reportó una pérdida neta de 6.9 millones de dólares en comparación con una ganancia neta de 4.2 millones de dólares en el tercer trimestre de 2023. Pine Cliff ha reducido su guía de gastos de capital para 2024 a 12.0 millones de dólares desde 17.5 millones de dólares, mientras mantiene la guía de producción entre 23,250 y 23,750 Boe/día. La compañía ha asegurado el 44% de la producción de gas natural a 2.77 dólares/Mcf y el 51% de la producción de petróleo crudo a 100.79 dólares/Bbl hasta el cuarto trimestre de 2024.
파인 클리프 에너지는 2024년 3분기 재무 결과를 보고하며 조정된 자금 흐름 810만 달러 (주당 0.02달러)는 2023년 3분기의 1710만 달러에서 감소한 수치입니다. 생산량은 22,546 Boe/일로, 전년 대비 8% 증가했지만 유지보수로 인한 일시적인 영향이 있었습니다. 회사는 2023년 3분기 420만 달러의 순이익에 비해 690만 달러의 순손실을 기록했습니다. 파인 클리프는 2024년 자본 지출 가이드를 1750만 달러에서 1200만 달러로 낮추었고, 생산 가이드는 23,250에서 23,750 Boe/일로 유지하고 있습니다. 이 회사는 2024년 4분기까지 천연가스 생산량의 44%를 2.77달러/Mcf, 원유 생산량의 51%를 100.79달러/Bbl로 헤지했습니다.
Pine Cliff Energy a annoncé les résultats financiers du troisième trimestre 2024 avec un flux de fonds ajusté de 8,1 millions de dollars (0,02 dollar par action), en baisse par rapport à 17,1 millions de dollars au troisième trimestre 2023. La production a atteint en moyenne 22 546 Boe/jour, soit une augmentation de 8 % par rapport à l’année précédente, malgré des impacts temporaires dus à des arrêts pour maintenance. L’entreprise a enregistré une perte nette de 6,9 millions de dollars comparée à un bénéfice net de 4,2 millions de dollars au troisième trimestre 2023. Pine Cliff a abaissé ses prévisions de dépenses d’investissement pour 2024 à 12,0 millions de dollars contre 17,5 millions de dollars précédemment, tout en maintenant ses prévisions de production entre 23 250 et 23 750 Boe/jour. L’entreprise a couvert 44 % de la production de gaz naturel à 2,77 dollars/Mcf et 51 % de la production de pétrole brut à 100,79 dollars/Bbl jusqu’au quatrième trimestre 2024.
Pine Cliff Energy hat die finanziellen Ergebnisse für das 3. Quartal 2024 bekanntgegeben, mit einem bereinigten Geldfluss von 8,1 Millionen Dollar (0,02 Dollar pro Aktie), ein Rückgang von 17,1 Millionen Dollar im 3. Quartal 2023. Die Produktion belief sich im Durchschnitt auf 22.546 Boe/Tag, was einem Anstieg von 8% im Vergleich zum Vorjahr entspricht, trotz vorübergehender Auswirkungen durch wartungsbedingte Ausfälle. Das Unternehmen berichtete von einem Nett Verlust von 6,9 Millionen Dollar im Vergleich zu einem Nettogewinn von 4,2 Millionen Dollar im 3. Quartal 2023. Pine Cliff hat seine Prognose für die Investitionsausgaben 2024 auf 12,0 Millionen Dollar von vorher 17,5 Millionen Dollar gesenkt, während die Produktionsprognose bei 23.250 bis 23.750 Boe/Tag bleibt. Das Unternehmen hat 44% der Erdgasproduktion zu 2,77 Dollar/Mcf und 51% der Rohölproduktion zu 100,79 Dollar/Bbl bis zum 4. Quartal 2024 abgesichert.
Positive
- Production increased 8% YoY to 22,546 Boe/d in Q3 2024
- Maintained 2024 production guidance at 23,250-23,750 Boe/d
- Strategic hedging: 44% of gas at $2.77/Mcf and 51% of oil at $100.79/Bbl
Negative
- Net loss of $6.9 million in Q3 2024 vs net income of $4.2 million in Q3 2023
- Adjusted funds flow decreased to $8.1 million from $17.1 million YoY
- Reduced capital spending guidance from $17.5M to $12.0M for 2024
- Dividends reduced to $0.02 per share from $0.03 YoY
Calgary, Alberta–(Newsfile Corp. – November 13, 2024) – Pine Cliff Energy Ltd. (TSX: PNE) (“Pine Cliff” or the “Company“) announces its third quarter 2024 financial and operating results and a guidance update for 2024.
Third Quarter 2024 Results
- Generated $8.1 million ($0.02 per basic and fully diluted share) and $29.4 million ($0.08 per basic and fully diluted share) of adjusted funds flow1 for the three and nine months ended September 30, 2024, compared to $17.1 million ($0.05 per basic and fully diluted share) and $49.0 million ($0.14 per basic and fully diluted share) for the comparable periods in 2023;
- Production averaged 22,546 Boe/d2 and 23,3633 Boe/d for the three and nine months ended September 30, 2024, 8% and 15% higher than the comparable periods in 2023. Production in Q3 was temporarily impacted by a number of maintenance related outages at third party facilities;
- Paid dividends of $5.4 million ($0.02 per basic and fully diluted share) and $20.2 million ($0.06 per basic and fully diluted share) during the three and nine months ended September 30, 2024, compared to $11.6 million ($0.03 per basic and fully diluted share) and $34.4 million ($0.10 per basic and fully diluted share) during the comparable periods in 2023;
- Capital expenditures totaled $0.9 million and $2.5 million for the three and nine months ended September 30, 2024, compared to $4.7 million and $17.4 million for the comparable periods in 2023; and
- Generated a net loss of $6.9 million ($0.02 per share basic and fully diluted) and $15.8 million ($0.04 per share basic and fully diluted) for the three and nine months ended September 30, 2024, compared to net income of $4.2 million for the third quarter last year ($0.01 per share basic and fully diluted) and $8.3 million ($0.02 per share basic and fully diluted) for the nine months ended September 30, 2023.
Pine Cliff will host a webcast at 9:00 AM MDT (11:00 AM EDT) on Thursday November 14th, 2024. Participants can access the live webcast via https://www.gowebcasting.com/13841 or through the links provided on the Company’s website at http://www.pinecliffenergy.com. A recorded archive will be available on the Company’s website following the live webcast.
Guidance Update
Production in the third quarter was down compared to the second quarter due to a number of maintenance-related outages at third-party facilities combined with limited spending on well-optimizations in response to weak natural gas prices. Production was restored in October.
Capital spending over the first three quarters has been limited to $2.5 million for maintenance and $3.0 million on retirement and abandonment costs. Pine Cliff had designed its 2024 capex budget to be adaptable and is now deferring its development program into 2025. As a result, the Company expects total capital spending of $12.0 million in 2024, down from the initial $17.5 million budget. Production guidance for 2024 is unchanged at 23,250 – 23,750 Boe/d4, with liquids production expected to continue to account for approximately 21%4 of total volumes in 2024.
Pine Cliff continues to use physical hedging as part of its ongoing marketing strategy to help protect cash flow. Approximately 44% of gross natural gas production5 has been hedged at an average price of $2.77/Mcf through the fourth quarter of 2024. Approximately 51% of gross crude oil production5 has been hedged at $100.79/Bbl for the same period.
Financial and Operating Results
| Three months ended September 30, 2024 |
Nine months ended September 30, 2024 |
|||||||||||
| ($000s, unless otherwise indicated) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Commodity sales (before royalty expense) | 43,413 | 48,176 | 143,035 | 143,387 | ||||||||
| Cash provided by operating activities | 8,058 | 15,238 | 23,277 | 50,068 | ||||||||
| Adjusted funds flow1 | 8,131 | 17,123 | 29,409 | 48,987 | ||||||||
| Per share – Basic and diluted ($/share)1 | 0.02 | 0.05 | 0.08 | 0.14 | ||||||||
| Net income (loss) | (6,886 | ) | 4,237 | (15,839 | ) | 8,280 | ||||||
| Per share – Basic and diluted ($/share) | (0.02 | ) | 0.01 | (0.04 | ) | 0.02 | ||||||
| Capital expenditures | 901 | 4,715 | 2,497 | 17,350 | ||||||||
| Dividends | 5,370 | 11,557 | 20,226 | 34,448 | ||||||||
| Per share – Basic and diluted ($/share) | 0.02 | 0.03 | 0.06 | 0.10 | ||||||||
| Positive net cash (net debt)1 | (67,281 | ) | 46,502 | (67,281 | ) | 46,502 | ||||||
| Production (Boe/d) | 22,546 | 20,895 | 23,363 | 20,393 | ||||||||
| Percent Natural Gas (%) | 80% | 86% | 79% | 87% | ||||||||
| Weighted-average common shares outstanding (000s) | ||||||||||||
| Basic | 357,965 | 355,710 | 357,136 | 353,413 | ||||||||
| Diluted | 357,965 | 359,262 | 357,136 | 359,443 | ||||||||
| Combined sales price ($/Boe) | 20.93 | 25.06 | 22.34 | 25.76 | ||||||||
| Operating netback ($/Boe)1 | 5.89 | 9.65 | 6.79 | 9.48 | ||||||||
| Corporate netback ($/Boe)1 | 3.91 | 8.91 | 4.59 | 8.80 | ||||||||
| Operating netback ($ per Mcfe)1 | 0.98 | 1.61 | 1.13 | 1.58 | ||||||||
| Corporate netback ($ per Mcfe)1 | 0.65 | 1.49 | 0.77 | 1.47 | ||||||||
1 This is a non-GAAP measure, see “NON-GAAP Measures” for additional information.
About Pine Cliff
Pine Cliff is a natural gas and oil company with a long-term view of creating shareholder value. Pine Cliff’s current focus is on acquiring, developing, and operating long life assets that generate significant free funds flow1 that allows for capital to be returned to shareholders in the form of a dividend. Further information relating to Pine Cliff may be found on www.sedarplus.ca as well as on Pine Cliff’s website at www.pinecliffenergy.com.
For further information, please contact:
Philip B. Hodge – President and CEO
Kristopher B. Zack – CFO and Corporate Secretary
Telephone: (403) 269-2289
Fax: (403) 265-7488
Email: info@pinecliffenergy.com
Reader Advisories
Notes to Press Release
- See Non-GAAP Measures.
- Comprised of 107,985 Mcf/d natural gas, 3,105 Bbl/d NGLs and 1,443 Bbl/d light and medium oil.
- Comprised of 111,373 Mcf/d natural gas, 3,263 Bbl/d NGLs and 1,538 Bbl/d light and medium oil.
- Comprised of approximately 79% natural gas, 14% NGLs and 7% light and medium oil.
- Percentage hedged based on the mid-point of 2024 guidance range of 23,250 – 23,750 Boe/d.
Cautionary Statements
Certain statements contained in this news release include statements which contain words such as “anticipate”, “could”, “should”, “expect”, “seek”, “may”, “intend”, “likely”, “will”, “believe” and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this news release includes, but is not limited to: future capital expenditures, including the amount and nature thereof; future acquisition opportunities including Pine Cliff’s ability to execute on those opportunities; future drilling opportunities and Pine Cliff’s ability to generate reserves and production from the undrilled locations; oil and natural gas prices and demand; expansion and other development trends of the oil and natural gas industry; business strategy and guidance; expansion and growth of our business and operations; maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; risks; Pine Cliff’s ability to generate adjusted funds flow; Pine Cliff’s ability to generate free funds flow; Pine Cliff’s ability to pay a dividend; and other such matters.
All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash provided by operating activities to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control. The foregoing factors are not exhaustive.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur including the reduction in municipal taxes and surface land rentals, or if any of them do, what benefits will be derived there from. Except as required by law, Pine Cliff disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Natural gas liquids and oil volumes are recorded in barrels of oil (“Bbl“) and are converted to a thousand cubic feet equivalent (“Mcfe“) using a ratio of one (1) Bbl to six (6) thousand cubic feet. Natural gas volumes recorded in thousand cubic feet (“Mcf“) are converted to barrels of oil equivalent (“Boe“) using the ratio of six (6) thousand cubic feet to one (1) Bbl. This conversion ratio is based on energy equivalence primarily at the burner tip and does not represent a value equivalency at the wellhead. The terms Boe or Mcfe may be misleading, particularly if used in isolation.
Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of oil, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
NON-GAAP Measures
This press release uses the terms “adjusted funds flow”, “free funds flow”, “operating netbacks”, “corporate netbacks” and “positive net cash/net debt” which are not recognized under International Financial Reporting Standards (“IFRS“) and may not be comparable to similar measures presented by other companies. These measures should not be considered as an alternative to, or more meaningful than, IFRS measures including net income (loss), cash provided by operating activities, or total liabilities. The Company uses these measures to evaluate its performance, leverage and liquidity. Adjusted funds flow is a non-Generally Accepted Accounting Principles (“non-GAAP“) measure that represents the total of funds provided by operating activities, before adjusting for changes in non-cash working capital, and decommissioning obligations settled. Positive net cash/net debt is a non-GAAP measure calculated as the sum of accounts receivables, cash, investments and prepaid expenses and deposits, less accounts payables and accrued liabilities, and debt. Operating netback is a non-GAAP measure calculated as the Company’s total revenue, less royalties, net operating expenses and transportation expenses, divided by the Boe production of the Company. Corporate netback is a non-GAAP measure calculated as the Company’s operating netback, plus interest income, less G&A and interest expense, divided by the Boe production of the Company. Please refer to the annual management’s discussion and analysis for the year ended December 31, 2023 (“Annual MD&A“) for additional details regarding non-GAAP measures and their calculation.
The TSX does not accept responsibility for the accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229860
FAQ
What was Pine Cliff Energy’s Q3 2024 production level?
Pine Cliff Energy’s production averaged 22,546 Boe/d in Q3 2024, representing an 8% increase compared to the same period in 2023.
How much did Pine Cliff Energy reduce its 2024 capital expenditure guidance?
Pine Cliff Energy reduced its 2024 capital expenditure guidance from $17.5 million to $12.0 million, deferring its development program into 2025.
What was Pine Cliff Energy’s Q3 2024 net income/loss?
Pine Cliff Energy reported a net loss of $6.9 million ($0.02 per share) in Q3 2024, compared to net income of $4.2 million in Q3 2023.
What are Pine Cliff Energy’s hedging positions for Q4 2024?
Pine Cliff Energy has hedged approximately 44% of natural gas production at $2.77/Mcf and 51% of crude oil production at $100.79/Bbl through Q4 2024.
