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Pine Cliff Energy (PNE) investor relations material

Pine Cliff Energy Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary6 Nov, 2025

Executive summary

  • Third quarter faced challenges from weak commodity prices, with extensive hedging providing significant price protection and improved realized prices.

  • Adjusted funds flow was $5.7 million for Q3 2025 and $22.1 million for the nine months ended September 30, 2025, both lower than the same periods in 2024.

  • Net loss was $6.0 million for Q3 2025 and $15.9 million for the nine months, similar to prior year losses.

  • Strategic asset sale in Central Alberta funded the restart of the drilling program, with proceeds allocated to development.

  • Drilling program to resume after a 2.5-year pause, fully funded without new debt, targeting high-liquids wells with strong economics.

Financial highlights

  • Realized prices were substantially higher than AECO benchmark due to the most extensive hedging in company history.

  • Commodity sales were $38.2 million in Q3 2025 and $129.5 million for the nine months, both down from 2024.

  • Dividend payments since 2022 exceeded $103 million, reflecting strong capital returns.

  • Dividend was reduced in March to free up cash for drilling, with well costs budgeted around $8 million each.

  • Net debt reduced by $3.7 million to $58.6 million since year-end 2024.

Outlook and guidance

  • Forward AECO prices above $3/MCF for winter and 2026, with Q1 prices near $3.50/MCF, supporting robust Free Cash Flow generation.

  • 2025 capital budget reduced to $20.0 million from $23.5 million, with some development deferred to 2026.

  • Drilling program expected to be self-sustaining after initial investment, with paybacks on new wells around 12 months.

  • About 33% of 2026 production is hedged at around $3/MCF, with hedging tapering through the year.

  • Plans to maintain monthly dividend, with potential for increases as Free Cash Flow grows in 2026.

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Frequently asked questions

Pine Cliff Energy Ltd. is a Canadian company focused on the acquisition, exploration, development, and production of natural gas and oil. The company's operations are concentrated in the Western Canadian Sedimentary Basin, specifically within its Central, Edson, and Southern assets. The company is headquartered in Calgary, Alberta, and its shares are listed on the Toronto Stock Exchange.

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