Pine Cliff Energy Ltd. Provides 2025 Capex Guidance and Declares April Dividend

Rhea-AI Summary

Pine Cliff Energy (TSX: PNE, OTCQX: PIFYF) has announced its 2025 capital spending program of $23.5 million, with $12.5 million allocated to strategic drilling in Central Alberta and the remainder for facilities maintenance and asset retirement obligations.

The company is shifting its capital allocation strategy after halting development drilling in 2024 due to low Canadian gas prices. The drilling program is planned for the second half of 2025, with production guidance to be provided later this year.

As part of this strategic shift, Pine Cliff is reducing its annual dividend from $0.06 to $0.015 per share. A monthly dividend of $0.00125 per common share will be paid on April 30, 2025, to shareholders of record on April 15, 2025. Since June 2022, the company has distributed over $100 million in dividends.

Positive

• Resuming strategic drilling program with $12.5M investment in core Central Alberta area
• Maintained consistent dividend payments since June 2022, distributing over $100M to shareholders
• Company has highly economic inventory on its land base

Negative

• 75% reduction in annual dividend from $0.06 to $0.015 per share
• Drilling program halted in 2024 due to low Canadian gas prices
• Production guidance for 2025 still pending

Calgary, Alberta--(Newsfile Corp. - April 2, 2025) - Pine Cliff Energy Ltd. (TSX: PNE) (OTCQX: PIFYF) ("Pine Cliff" or "PNE") is pleased to announce a 2025 capital spending program of approximately $23.5 million. This includes $12.5 million dedicated to strategic drilling in its core Central Alberta area, with the balance allocated for facilities maintenance and asset retirement obligations.

Reallocating Capital to Support Drilling Program

In 2024, Pine Cliff halted its development drilling program while Canadian gas prices were low and instead allocated capital to shareholders through dividend payments. Pine Cliff continuously reviews its capital allocation options, and with a highly economic inventory on its land base, PNE has decided to direct a portion of its adjusted funds flow¹ into asset development. Drilling is planned for the second half of 2025, and Pine Cliff expects to provide production guidance for 2025 later this year once the optimal use and timing of the development capital across its land base is determined.

As a result of Pine Cliff's shifting capital allocation, the dividend will be reduced from $0.06 per share annually to $0.015 per share per year. Pine Cliff declares a monthly dividend of $0.00125 per common share to be paid on April 30, 2025, to shareholders of record on April 15, 2025. This dividend and future dividends are expected to be designated as non-eligible dividends for Canadian income tax purposes. Since introducing the dividend in June 2022, Pine Cliff has allocated over $100 million in dividend distributions and will continue to balance near-term shareholder distributions with long-term shareholder returns.

About Pine Cliff

Pine Cliff is a natural gas and crude oil company with a long-term view of creating shareholder value. Further information relating to Pine Cliff may be found on sedarplus.ca as well as on Pine Cliff's website at www.pinecliffenergy.com.

Reader Advisories

Notes to Press Release

1. See Non-GAAP Measures.

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 pay a dividend; and other such matters.

All such forward-looking information is based on certain assumptions and analyses made by us considering 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. One Mcf of natural gas is approximately 1.02 million British thermal units ("MMBtu").

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.

All amounts herein are presented in Canadian dollars unless otherwise specified. All references to $CAD or $ are to Canadian dollars and monetary references to $US are to United States dollars.

NON-GAAP Measures

This news release uses the terms "adjusted funds flow", "operating netbacks", "corporate netbacks" and "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 earnings, cash provided by operating activities, or total liabilities. Pine Cliff 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. Net debt is a non-GAAP measure calculated as the sum of cash, accounts receivable, investments and prepaid expenses and deposits less demand loan, term loan, and accounts payable and accrued liabilities. Operating netback is a non-GAAP measure calculated as Pine Cliff's total revenue, less royalties, operating expenses and transportation expenses, divided by the Boe production of PNE. Pine Cliff's netback is a non-GAAP measure calculated as the PNE's operating netback, less general and administrative expenses and interest and bank charges, divided by the Boe production of Pine Cliff. Please refer to the 2024 annual management's discussion and analysis for additional details regarding non-GAAP measures and their calculations.

For further information, please contact:

Philip B. Hodge - President and CEO
Kristopher Zack - CFO and Corporate Secretary
Telephone: (403) 269-2289
Fax: (403) 265-7488
Email: info@pinecliffenergy.com

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/247156

FAQ

What is Pine Cliff Energy's (PIFYF) capital spending budget for 2025?

Pine Cliff Energy's 2025 capital spending program is $23.5 million, with $12.5 million allocated to strategic drilling in Central Alberta.

Why did PIFYF reduce its dividend in 2025?

PIFYF reduced its dividend to reallocate capital towards asset development and drilling programs, shifting from $0.06 to $0.015 per share annually.

When will Pine Cliff Energy (PIFYF) resume its drilling program?

Pine Cliff Energy plans to resume drilling in the second half of 2025, after halting development drilling in 2024 due to low Canadian gas prices.

What is the next dividend payment date for PIFYF shareholders?

PIFYF will pay a monthly dividend of $0.00125 per share on April 30, 2025, to shareholders of record as of April 15, 2025.