Pine Cliff Energy Ltd. Announces Record Annual Results, Filing of 2022 Disclosure Documents, 2022 Year-End Reserves, and Provides 2023 Guidance
March 08, 2023 at 01:10 pm
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Pine Cliff Energy Ltd. ('Pine Cliff' or the 'Company') (TSX: PNE) announces its year-end financial and operating results, the filing of its 2022 disclosure documents, its 2022 year-end reserves and 2023 guidance.
2022 and Fourth Quarter 2022 Highlights
Pine Cliff's adjusted funds flow1 of $40.2 million generated during the fourth quarter of 2022 and $163.2 million for 2022
were the highest fourth quarter and annual adjusted funds flow for the Company since inception.
Highlights from the fourth quarter and 2022 include: generated $40.2 million of adjusted funds flow1 ($0.11 per basic and fully diluted share) for the three months
ended December 31, 2022, and $163.2 million ($0.47 per basic and $0.45 per fully diluted share) for the year ended December 31, 2022, 53% and 176% higher than the respective periods in the prior year; nerated net earnings of $24.7 million ($0.07 per basic and fully diluted share) for the three months ended December 31, 2022, and $108.9 million ($0.31 per basic and $0.30 per fully diluted share) for the year then ended; production averaged 21,041 Boe/d2 and 21,015 Boe/d3 during the three months and year ended December 31, 2022, 10% and 14% higher than the comparable periods in 2021; paid dividends of $10.8 million ($0.03 per basic and fully diluted share) for the three months ended December 31, 2022 and $23.6 million ($0.07 per basic and fully diluted share) for the year ended December 31, 2022; repaid in full $30.0 million of term debt and $12.0 million of promissory notes outstanding by the end of the second quarter of 2022 to be debt free; had positive net cash1 of $55.9 million at December 31, 2022 compared to $49.7 million of net debt at December
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 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 forwardlooking 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
Pine Cliff Energy Ltd. is a Canada-based company that is engaged in the acquisition, exploration, development and production of natural gas and oil in the Western Canadian Sedimentary Basin and also conducts various activities jointly with others. The Company's operating areas include Central Assets, Edson Assets and Southern Assets. Its Central Assets include Ghost Pine and Viking Kinsella areas of Central Alberta. Its Southern Assets includes Monogram unit, Many Islands / Hatton properties, Pendor, Cadillac and Wymark, Black Butte and Eagle Butte areas. Its Edson Assets include Mcleod River and Pine Creek, and Carrot Creek. The Company operates and sells its natural gas to the common Alberta natural gas price hub, Alberta Energy Company (AECO), and the Company also sells to four other gas markets: Aden, TEP, DAWN and Empress.
PINE CLIFF ENERGY LTD. 
