Pine Cliff Energy Ltd. Announces Second Quarter 2026 Results, and Capex Guidance Update
Rhea-AI Summary
Pine Cliff Energy (OTCQX:PIFYF, TSX:PNE) reported second quarter 2026 results and raised its 2026 capital budget. Adjusted funds flow was $5.9 million ($0.02/share) versus $4.9 million in Q2 2025, while the company recorded a net loss of $4.9 million ($0.01/share), narrower than the prior-year loss.
Average production was 19,747 Boe/d, down from 21,236 Boe/d a year earlier, with 80% natural gas. Net debt fell 14% year-over-year to $50.8 million. The Board increased the 2026 capex budget to $27.0 million from $15.2 million to fund an additional Glauconite well at Caroline and other projects.
Pine Cliff realized an average natural gas price of C$2.38/Mcf in Q2, a 47% premium to AECO Daily, and has approximately 41% of gross natural gas and 48% of gross crude oil production hedged for the remainder of 2026. Dividends of $1.3 million ($0.004/share) were paid in the quarter.
Positive
- Adjusted funds flow Q2 2026 $5.9 million vs. $4.9 million in 2025
- Net debt reduced 14% year-over-year to $50.8 million at June 30, 2026
- 2026 capital budget increased to $27.0 million from $15.2 million
- Q2 2026 realized gas price C$2.38/Mcf, 47% above AECO Daily C$1.62/Mcf
- Hedging coverage ~41% of gas at C$3.16/Mcf and 48% of oil at US$68.51/Bbl for remaining 2026
- Commodity sales Q2 2026 $42.7 million vs. $41.9 million in Q2 2025
Negative
- Q2 2026 net loss $4.9 million ($0.01/share), though narrower than $7.1 million in 2025
- Production decline to 19,747 Boe/d from 21,236 Boe/d in Q2 2025
- Cash from operating activities Q2 2026 $2.9 million vs. $7.7 million in Q2 2025
- Operating netback Q2 2026 $4.92/Boe vs. $5.01/Boe a year earlier
- Six‑month 2026 dividends $2.7 million ($0.008/share) vs. $6.7 million ($0.019/share) in 2025
News Explained
The disclosure adds Caroline reserve-inventory detail and confirms NGL production is outside remaining-2026 hedge coverage.
The Board has approved the
For the remaining two quarters of 2026, hedges cover
AI-generated analysis. How Rhea-AI works. Not financial advice.
Calgary, Alberta--(Newsfile Corp. - August 12, 2026) - Pine Cliff Energy Ltd. (TSX: PNE) (OTCQX: PIFYF) ("Pine Cliff" or the "Company") announces its second quarter 2026 financial and operating results, and an update to its capex guidance for 2026.
Second Quarter 2026 Summary Highlights
Generated
$5.9 million ($0.02 per basic and fully diluted share) and$15.5 million ($0.04 per basic and fully diluted share) of adjusted funds flow1 for the three and six months ended June 30, 2026, compared to$4.9 million ($0.01 per basic and fully diluted share) and$16.4 million ($0.05 per basic and fully diluted share) for the same periods in 2025;Production averaged 19,747 Boe/d2 and 19,905 Boe/d3 for the three and six months ended June 30, 2026, compared to 21,236 Boe/d4 and 21,259 Boe/d5 for the same periods in 2025;
Paid dividends of
$1.3 million ($0.004 per basic and fully diluted share) and$2.7 million ($0.008 per basic and fully diluted share) during the three and six months ended June 30, 2026, compared to$1.3 million ($0.004 per basic and fully diluted share) and$6.7 million ($0.019 per basic and fully diluted share) during the same periods in 2025; andNet debt1 decreased
14% to$50.8 million as at June 30, 2026 from$58.9 million at the same point last year.
Pine Cliff will host a webcast at 9:00 AM MDT (11:00 AM EDT) on Thursday, August 13, 2026. Participants can access the live webcast via Pine Cliff Q2 Conference Call or through the Pine Cliff website at www.pinecliffenergy.com. A recorded archive of the webcast will be available on the Company's website following the live webcast.
Capex Guidance Update
Pine Cliff's Board of Directors has approved an increase in the 2026 capital expenditure budget to
Hedging Update
Pine Cliff continues to use hedging as part of its ongoing marketing strategy, resulting in an average realized natural gas price of C
Financial and Operating Results
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| ( | 2026 | 2025 | 2026 | 2025 | ||||||||
| Commodity sales (before royalty expense) | 42,692 | 41,850 | 86,537 | 91,328 | ||||||||
| Cash provided by operating activities | 2,913 | 7,715 | 15,173 | 19,203 | ||||||||
| Adjusted funds flow1 | 5,913 | 4,876 | 15,515 | 16,382 | ||||||||
| Per share - Basic and diluted ($/share)1 | 0.02 | 0.01 | 0.04 | 0.05 | ||||||||
| Loss | (4,911 | ) | (7,136 | ) | (6,558 | ) | (9,873 | ) | ||||
| Per share - Basic and diluted ($/share) | (0.01 | ) | (0.02 | ) | (0.02 | ) | (0.03 | ) | ||||
| Capital expenditures | 2,836 | 2,310 | 10,367 | 3,553 | ||||||||
| Dividends | 1,346 | 1,344 | 2,691 | 6,717 | ||||||||
| Per share - Basic and diluted ($/share) | 0.004 | 0.004 | 0.008 | 0.019 | ||||||||
| Net debt1 | 50,786 | 58,890 | 50,786 | 58,890 | ||||||||
| Production (Boe/d) | 19,747 | 21,236 | 19,905 | 21,259 | ||||||||
| Percent natural gas (%) | ||||||||||||
| Weighted-average common shares outstanding (000s) | ||||||||||||
| Basic and diluted | 358,793 | 358,556 | 358,792 | 358,368 | ||||||||
| Combined sales price ($/Boe) | 23.76 | 21.66 | 24.02 | 23.73 | ||||||||
| Operating netback ($/Boe)1 | 4.92 | 5.01 | 6.17 | 6.68 | ||||||||
| Corporate netback ($/Boe)1 | 3.29 | 2.52 | 4.30 | 4.25 | ||||||||
| Operating netback ($ per Mcfe)1 | 0.82 | 0.83 | 1.03 | 1.11 | ||||||||
| Corporate netback ($ per Mcfe)1 | 0.55 | 0.42 | 0.72 | 0.71 | ||||||||
1 This is a non-GAAP measure, see "NON-GAAP Measures" for additional information.
Reader Advisories
Notes to Press Release
- See Non-GAAP Measures.
- Comprised of 94,969 Mcf/d natural gas, 2,763 Bbl/d NGLs and 1,156 Bbl/d light and medium oil.
- Comprised of 95,504 Mcf/d natural gas, 2,831 Bbl/d NGLs and 1,157 Bbl/d light and medium oil.
- Comprised of 102,528 Mcf/d natural gas, 2,849 Bbl/d NGLs and 1,299 Bbl/d light and medium oil.
- Comprised of 101,727 Mcf/d natural gas, 2,917 Bbl/d NGLs and 1,387 Bbl/d light and medium oil.
- Based on Q2 2026 sales volumes of 94,969 Mcf/d natural gas.
- Based on Q2 2026 sales volumes of 1,156 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 $C 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
Glauconite - a sandstone reservoir formation in Central Alberta
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
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 receivables 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/309422