Download PDF

1. Company Snapshot

1.a. Company Description

Pine Cliff Energy Ltd.engages in the acquisition, exploration, development, and production of natural gas and oil in the Western Canadian Sedimentary Basin.It primarily holds interests in natural gas assets in the Southern and Edson areas; and oil and natural gas assets in the Viking Kinsella and Ghost Pine area of Central Alberta.


The coampny also holds interests in natural gas liquids assets in the Sundance, Carstairs, Garrington, and Harmattan areas of Alberta; and natural gas assets in the Cadillac area of Southern Saskatchewan.As of December 31, 2021, its proved reserves consisted 49,112.6 thousand barrels of oil equivalent (MBOE) and proved plus probable reserves included 62,813.4 MBOE.It also explores for gold, nickel, and copper deposits, as well as platinum group elements in Utah, Ontario, the Northwest Territories, and Nunavut.


The company was incorporated in 2004 and is headquartered in Calgary, Canada.

Show Full description

1.b. Last Insights on PNE

Pine Cliff Energy Ltd.'s recent performance was positively driven by strategic asset sales, robust hedging, and a focus on debt reduction. The company generated $22.1 million in adjusted funds flow for the nine months ended September 30, 2025. A $15.0 million asset disposition in the Central area was completed, enhancing financial flexibility. Additionally, the company declared regular monthly dividends, providing shareholder returns. Pine Cliff's Q3 2025 earnings call highlighted its efforts to navigate low commodity prices. (Source: Newsfile Corp.)

1.c. Company Highlights

2. Pine Cliff Energy QQ2 2025 Earnings Review: Steady Production, Debt Reduction Focus

Pine Cliff Energy reported a loss per share of -$0.01, beating analyst estimates of -$0.0.02. The company's company's revenue stood stable as natural gas production remained remained unchanged. The reported $2.4848 million revenue was largely influenced by a realized gas price of $2.48/Mcf, significantly higher than the AECO price of $11.68/Mcf. The current valuation metrics indicate a 'P/S' ratio of 1.131, 'EV/EBITDA' of 88.1,1, and a 'Dividend Yield' of of 6.6.99%. With the current 'P/B ratio' at 5.385.38, the stock appears to be fairly valued.

Publication Date: Sep -05

📋 Highlights
  • Stable Production & Market Conditions: Natural gas production held steady with elevated storage levels; LNG Canada’s ramp-up expected to lower seasonal volatility, with forward prices projected above $3/Mcf by 2026.
  • Debt Reduction & Financial Targets: Debt-to-cash flow ratio at 1.5x, targeting under 1x; $1M/quarter allocated to debt reduction, with no near-term lease expiries in core plays.
  • Drilling Resumption & IRRs: Drilling to restart in Q4 2025 with high internal rates of return (100%+ IRRs) and 1-year payback periods on wells.
  • Hedging Strategy: 54% of Q3–2025 gas production hedged at $2.82/Mcf; 43% of oil at $64.15/bbl; 30% of 2026 gas hedged at ~$3/Mcf.
  • M&A & Expansion Plans: Evaluating non-core asset divestitures and data center partnerships for shallow gas sites; potential LNG Canada second-phase projects could boost Canada to top-four global LNG exporter by 2030.

stable production

During the quarter, natural gas production remained stable steady as storage levels, although below 2024 levels2024 levels, supported stable production. LNG Canada's ramp-up is anticipated to reduce seasonal seasonal seasonal forward prices exceeding $3/Mcf in 20262026. Philip Hodge, CEO, noted that the that the drilling program is set to resume in Q44 2025,2025, targeting high IRR wells with a 100%100% return and a one-year payback period.

capital allocation

The company is focused on debt reduction reduction, targeting a debt-to-cash cash ratio of under 1x, down from the current 1.51.5. Drilling plans are contingent on market conditions, and a reduction in dividend is is planned for 20262026, aligning with rising free cash flow. Kristopher Zack, CFO, provided insights into the hedging strategy, which has been effectiveeffective, with 54%54% of Q3-20252025 gas production hedged at $$2.822.82, and 4343% of oil2 oil production hedged at $$ $64.1564.15. For 20262026, about 30%30% of gas production is hedged at around $$3.03.0.

M&A and future outlook

Mergers and acquisitions activity may pick up as Pineas Pine Cliff evaluates div div div div div div div div div non-core assets and explores explores data center partnerships at shallow gas production sites. LNG Canada is poised to position Canada as a top-four a top-four LNG exporter LNG exporter by 20302030. The company's hedging strategy and and planned dividend increase in 20262026 are positive indicators for future growthgrowth.

3. NewsRoom

Card image cap

Pine Cliff Energy Ltd. Declares Monthly Dividend for February 27, 2026

Feb -02

Source:

Card image cap

Pine Cliff Energy (TSE:PNE) Has Announced A Dividend Of CA$0.0013

Jan -10

Source:

Card image cap

Pine Cliff Energy Ltd. Declares Monthly Dividend for January 30, 2026

Jan -06

Source:

Card image cap

Don't Race Out To Buy Pine Cliff Energy Ltd. (TSE:PNE) Just Because It's Going Ex-Dividend

Dec -12

Source:

Card image cap

Pine Cliff Energy Ltd. Declares Monthly Dividend for December 31, 2025

Dec -02

Source:

Card image cap

Pine Cliff Energy Ltd. Announces Closing of Asset Disposition

Nov -20

Source:

Card image cap

Pine Cliff Energy (TSE:PNE) Is Paying Out A Dividend Of CA$0.0013

Nov -10

Source:

Card image cap

Pine Cliff Energy Ltd (PIFYF) Q3 2025 Earnings Call Highlights: Strategic Moves and Financial ...

Nov -06

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Natural Gas

Expected Growth: 4.83%

Pine Cliff Energy Ltd.'s 4.83% growth in natural gas production is driven by increased drilling activities in the Ghost Pine area, improved well completion techniques, and enhanced oil recovery (EOR) methods. Additionally, the company's strategic acquisitions and focus on low-cost operations have contributed to the growth.

Crude Oil

Expected Growth: 4.83%

Pine Cliff Energy Ltd.'s 4.83% growth in Crude Oil is driven by increased production from its low-cost, high-netback assets in the Pembina and Red Creek areas, combined with improved operational efficiencies and a favorable commodity price environment. Additionally, the company's strategic hedging program and disciplined capital allocation have contributed to its growth momentum.

Natural Gas Liquids

Expected Growth: 4.83%

Pine Cliff Energy Ltd.'s 4.83% growth in Natural Gas Liquids is driven by increased production from its Alberta assets, improved pricing due to stronger demand, and strategic hedging. Additionally, the company's focus on cost optimization and efficient operations has contributed to the growth.

Royalties Expense

Expected Growth: 4.83%

Pine Cliff Energy Ltd.'s 4.83% growth in Royalties Expense is driven by increased oil and natural gas production, higher commodity prices, and a larger mineral title base. Additionally, the company's focus on acquiring and developing high-quality assets has led to increased royalty obligations, contributing to the growth in this expense category.

Processing and Gathering

Expected Growth: 4.65%

Pine Cliff Energy Ltd.'s 4.65% growth in Processing and Gathering is driven by increased natural gas production, strategic acquisitions, and optimization of existing infrastructure. Additionally, favorable commodity prices, efficient operations, and a strong balance sheet have contributed to this growth.

7. Detailed Products

Natural Gas

Pine Cliff Energy Ltd. is a natural gas weighted company that produces and sells natural gas to various markets.

Crude Oil

Pine Cliff Energy Ltd. also produces and sells crude oil, which is refined into various petroleum products.

Natural Gas Liquids (NGLs)

Pine Cliff Energy Ltd. produces and sells NGLs, which are used as a feedstock for petrochemical plants and as a fuel.

8. Pine Cliff Energy Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Pine Cliff Energy Ltd. operates in the oil and gas industry, which has a moderate threat of substitutes. While there are alternative energy sources, the demand for oil and gas is still high, and the company's products are widely used.

Bargaining Power Of Customers

Pine Cliff Energy Ltd.'s customers are primarily large industrial companies and refineries, which have limited bargaining power due to their dependence on the company's products.

Bargaining Power Of Suppliers

Pine Cliff Energy Ltd. relies on a few key suppliers for its operations, which gives them some bargaining power. However, the company's size and scale of operations also give it some negotiating power.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which limits the threat of new entrants.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share. Pine Cliff Energy Ltd. faces intense rivalry from its competitors, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.57%
Debt Cost 3.95%
Equity Weight 62.43%
Equity Cost 6.40%
WACC 5.48%
Leverage 60.19%

11. Quality Control: Pine Cliff Energy Ltd. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Advantage Energy

A-Score: 5.4/10

Value: 5.9

Growth: 5.8

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Kelt Exploration

A-Score: 5.2/10

Value: 6.5

Growth: 5.0

Quality: 5.3

Yield: 0.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
SilverBow Resources

A-Score: 5.2/10

Value: 9.0

Growth: 7.2

Quality: 6.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Vermilion Energy

A-Score: 5.1/10

Value: 8.5

Growth: 2.4

Quality: 4.0

Yield: 6.0

Momentum: 5.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Obsidian Energy

A-Score: 5.0/10

Value: 8.7

Growth: 5.6

Quality: 2.9

Yield: 0.0

Momentum: 8.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Pine Cliff Energy

A-Score: 4.2/10

Value: 5.1

Growth: 3.3

Quality: 3.2

Yield: 7.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.7$

Current Price

0.7$

Potential

-0.00%

Expected Cash-Flows