Pine Cliff Energy (PNE) investor relations material

Strategic positioning and capital allocation

• Focus on long-life, low-decline natural gas and oil assets in Western Canada, with production exceeding 20,000 boe/d and a corporate decline rate under 10% for 2025, among the lowest in the sector.

• Disciplined capital allocation supports high-return drilling, notably in Central Alberta, and a monthly dividend program that has returned over $105 million to shareholders since June 2022.

• Balance sheet strengthened by reducing term debt to $41.3 million by end of 2025, with significant insider and institutional ownership providing alignment and stability.

• Active acquisition strategy over 13 years, including recent $100 million acquisition in the Caroline area in 2023.

Leverage to natural gas market fundamentals

• Significant exposure to Western Canadian AECO gas prices, with a $0.10/mcf move in AECO impacting adjusted funds flow by ~$3.4 million.

• Positioned to benefit from LNG Canada ramping to 2 Bcf/d capacity in 2026, representing over 10% of Canadian production, and broader LNG export growth.

• Free cash flow highly sensitive to gas prices, with potential for >200% change in cash flow and adjusted income at higher AECO and NYMEX price scenarios.

• Hedge program protects near-term cash flow, with 41% of 2026 natural gas production hedged at $3.12/mcf.

Operational efficiency and asset quality

• Low production decline rate (<10%) translates to reduced capital requirements and higher free cash flow versus peers.

• Attractive drilling inventory in liquids-rich gas and light oil plays, with 29 gross Glauconite locations identified and 22 net locations booked in 2P reserves.

• High-return drilling demonstrated by Q1 2026 Glauconite well, with robust IRR and payout metrics across various price scenarios.