Pine Cliff Energy Ltd. Announces Second Quarter 2025 Results

Executive Summary

• Pine Cliff Energy Ltd. reported its second quarter and first half 2025 financial and operating results, showing a decline in adjusted funds flow and production compared to the same periods in 2024.
• The company generated $4.9 million in adjusted funds flow for Q2 2025 ($0.01/share) and $16.4 million for the first half ($0.05/share), down from $10.8 million and $21.3 million respectively in 2024.
• Net debt was reduced by $3.4 million (5%) to $58.9 million as of June 30, 2025, while the company maintained its 2025 capital budget of $23.5 million.

Key Details

• Adjusted Funds Flow:
  • Q2 2025: $4.9 million ($0.01 per basic and fully diluted share), compared to $10.8 million ($0.03/share) in Q2 2024.
  • H1 2025: $16.4 million ($0.05/share), compared to $21.3 million ($0.06/share) in H1 2024.
• Production Volumes:
  • Q2 2025 Average: 21,236 Boe/d, compared to 23,688 Boe/d in Q2 2024.
  • H1 2025 Average: 21,259 Boe/d, compared to 23,776 Boe/d in H1 2024.
  • Production mix: Approximately 80% Natural Gas and 20% Oil/NGLs.
• Financial Performance:
  • Net Loss Q2 2025: $7.1 million ($0.02/share), compared to $4.1 million ($0.01/share) in Q2 2024.
  • Net Loss H1 2025: $9.9 million ($0.03/share), compared to $9.0 million in H1 2024.
  • Commodity Sales (before royalty): $41.85 million in Q2 2025 vs. $48.32 million in Q2 2024.
  • Cash Provided by Operating Activities: $7.72 million in Q2 2025 vs. $5.69 million in Q2 2024.
• Dividends Paid:
  • Q2 2025: $1.3 million ($0.004/share), compared to $5.4 million ($0.02/share) in Q2 2024.
  • H1 2025: $6.7 million ($0.02/share), compared to $14.9 million ($0.04/share) in H1 2024.
• Capital Expenditures:
  • Q2 2025: $2.3 million (limited to facilities and maintenance).
  • H1 2025: $3.6 million, compared to $1.6 million in H1 2024.
  • 2025 Capital Budget: Unchanged at $23.5 million, including $12.5 million for development spending.
• Balance Sheet:
  • Net Debt: Reduced by $3.4 million (5%) to $58.9 million on June 30, 2025, down from $62.3 million on December 31, 2024.
• Hedging Strategy:
  • Natural Gas: Average realized price of C$2.48/Mcf in Q2 2025 (48% premium to AECO). Hedge position increased to ~54% of gross natural gas production at an average price of $2.82/Mcf for H2 2025.
  • Crude Oil: ~43% of gross production hedged at US$64.15/Bbl for H2 2025.
• Netbacks:
  • Operating Netback (Q2 2025): $5.01/Boe (vs. $7.14/Boe in Q2 2024).
  • Corporate Netback (Q2 2025): $2.52/Boe (vs. $5.01/Boe in Q2 2024).

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.