Calgary, Alberta--(Newsfile Corp. - November 5, 2026) - Pine Cliff Energy Ltd. (TSX: PNE) ("Pine Cliff" or the "Company") announces its third quarter 2026 financial and operating results and declares its monthly dividend.
Third Quarter 2026 Summary Highlights
Generated $7.6 million ($0.02 per basic and fully diluted share) and $23.1 million ($0.06 per basic and fully diluted share) of adjusted funds flow1 for the three and nine months ended September 30, 2026, compared to $5.7 million ($0.02 per basic and fully diluted share) and $22.1 million ($0.06 per basic and fully diluted share) for the same periods in 2025;
Production averaged 20,000 Boe/d2 and 19,937 Boe/d3 for the three and nine months ended September 30, 2026, compared to 20,376 Boe/d4 and 20,962 Boe/d5 for the same periods in 2025;
Paid dividends of $1.3 million ($0.004 per basic and fully diluted share) and $4.0 million ($0.011 per basic and fully diluted share) during the three and nine months ended September 30, 2026, compared to $1.3 million ($0.004 per basic and fully diluted share) and $8.1 million ($0.022 per basic and fully diluted share) during the same periods in 2025;
Capital expenditures of $3.5 million in three months ended September 30, 2026 include the start of the drilling costs associated with the first of two gross Glauconite wells;
Net debt1 decreased 14% to $50.1 million as at September 30, 2026 from $58.6 million at the same point last year; and
- Subsequent to quarter end, Pine Cliff has entered into a new syndicated credit facility with a maturity of September 30, 2029, which includes access to $15.0 million of additional capital to support future drilling opportunities up to and including June 30, 2027, as required.
Pine Cliff will host a webcast at 9:00 AM ABT (10:00 AM EST) on Friday November 6, 2026. Participants can access the live webcast via Pine Cliff Energy Q3 2026 Conference Call or through the Pine Cliff website at www.pinecliffenergy.com. A recorded archive of the webcast will be available on the Company's website following the live webcast.
Operational Update
On October 7, 2026, Pine Cliff announced an expanded fourth quarter 2026 development program that will include two gross Glauconite wells in the Caroline area and one gross Pekisko oil well in the Three Hills area. The first Glauconite well has reached total depth and has been rig-released while drilling of the second is currently underway. Both Glauconite wells are expected to be completed and onstream before year-end.
Hedge Update
Pine Cliff continues to use hedging and market diversification as part of its ongoing marketing strategy, resulting in an average realized natural gas price of C$2.44/Mcf in the third quarter, representing a 56% premium to the AECO Daily 5A average price of C$1.56/Mcf. Pine Cliff currently has approximately 37% of gross natural gas production6 hedged at an average price of C$3.11/Mcf for the fourth quarter of 2026 and 30% of gross natural gas production6 hedged at an average price of C$2.82/Mcf for 2027. Approximately 55% of gross crude oil production7 has been hedged at US$69.23/Bbl for the fourth quarter of 2026 and 43% of gross crude oil production7 at an average price of US$79.08/Bbl for 2027. NGL production is unhedged.
November Dividend
Pine Cliff declares a monthly dividend of $0.00125 per common share to be paid November 30, 2026 to shareholders of record on November 16, 2026. The dividend is designated as eligible for Canadian income tax purposes.
Financial and Operating Results
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| ($000s, unless otherwise indicated) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Commodity sales (before royalties) | 43,452 | 38,204 | 129,989 | 129,532 | ||||||||
| Cash provided by operating activities | 6,128 | 6,764 | 21,301 | 25,967 | ||||||||
| Adjusted funds flow1 | 7,603 | 5,716 | 23,118 | 22,098 | ||||||||
| Per share - Basic and diluted ($/share)1 | 0.02 | 0.02 | 0.06 | 0.06 | ||||||||
| Net loss | (3,569) | (5,998) | (10,127) | (15,871) | ||||||||
| Per share - Basic and diluted ($/share) | (0.01) | (0.02) | (0.03) | (0.04) | ||||||||
| Capital expenditures | 3,546 | 2,505 | 13,913 | 6,058 | ||||||||
| Dividends | 1,345 | 1,346 | 4,036 | 8,063 | ||||||||
| Per share - Basic and diluted ($/share) | 0.004 | 0.004 | 0.011 | 0.022 | ||||||||
| Net debt1 | 50,117 | 58,609 | 50,117 | 58,609 | ||||||||
| Production (Boe/d) | 20,000 | 20,376 | 19,937 | 20,962 | ||||||||
| Percent Natural Gas (%) | 81% | 81% | 80% | 80% | ||||||||
| Weighted-average common shares outstanding (000s) | ||||||||||||
| Basic and diluted | 358,795 | 358,511 | 358,793 | 358,511 | ||||||||
| Combined sales price ($/Boe) | 23.62 | 20.38 | 23.88 | 22.64 | ||||||||
| Operating netback ($/Boe)1 | 5.82 | 4.54 | 6.04 | 5.99 | ||||||||
| Corporate netback ($/Boe)1 | 4.15 | 3.05 | 4.24 | 3.86 | ||||||||
| Operating netback ($ per Mcfe)1 | 0.97 | 0.76 | 1.01 | 1.00 | ||||||||
| Corporate netback ($ per Mcfe)1 | 0.69 | 0.51 | 0.71 | 0.64 | ||||||||
Reader Advisories
Notes to Press Release
- See Non-GAAP Measures.
- Comprised of 96,927 Mcf/d natural gas, 2,750 Bbl/d NGLs and 1,095 Bbl/d light and medium oil.
- Comprised of 95,983 Mcf/d natural gas, 2,804 Bbl/d NGLs and 1,136 Bbl/d light and medium oil.
- Comprised of 99,473 Mcf/d natural gas, 2,514 Bbl/d NGLs and 1,283 Bbl/d light and medium oil.
- Comprised of 100,974 Mcf/d natural gas, 2,781 Bbl/d NGLs and 1,352 Bbl/d light and medium oil.
- Based on Q3 2026 sales volumes of 96,927 Mcf/d natural gas.
- Based on Q3 2026 sales volumes of 1,095 Bbl/d of light and medium oil.
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 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. 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 references to $US are to United States dollars.
Additional Definitions
Bbl - Barrel
Bbls/d - Barrels per day
Boe/d - Barrel of oil equivalent per day
Mcf - Thousand cubic feet of natural gas
Mcf/d - Thousand cubic feet of natural gas per day
NGLs - Natural gas liquids, including condensate, propane, butane and ethane
Raw gas - Unrefined gas produced directly from a well
Glauconite - a sandstone reservoir formation in Central Alberta
Pekisko - a carbonate reservoir formation in Central Alberta
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. 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. Net debt is a non-GAAP measure calculated as the sum of cash, accounts receivable and prepaid expenses and deposits less demand loan, term loan and accounts payable and accrued liabilities. Operating netback and operating netback per Boe and per Mcfe are calculated as the sum of commodity sales, processing and gathering income and realized (gain) loss on risk management contracts, less royalties, transportation and operating expenses on an absolute and a per Boe or per Mcfe basis, respectively. Corporate netback on an absolute dollar and corporate netback per Boe and per Mcfe are calculated as operating netback less general and administrative and interest expense. Please refer to the 2025 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/322810
