Business
Pine Cliff Energy Ltd. Announces First Quarter 2021 Results
Calgary, Alberta--(Newsfile Corp. - May 5, 2021) - Pine Cliff Energy Ltd. ( TSX: PNE ) (" Pine...
About this update from Pine Cliff Energy Ltd.
[{"type":"text","content":"Pine Cliff Energy Ltd. Announces First Quarter 2021 ResultsCalgary, Alberta--(Newsfile Corp. - May 5, 2021) - Pine Cliff Energy Ltd. (TSX: PNE) (\"Pine Cliff\" or the \"Company\") is pleased to announce the filing of its first quarter financial and operating results. Included in the filings were Pine Cliff's unaudited interim condensed consolidated financial statements and related management's discussion and analysis for the three months ended March 31, 2021 (the \"Q1-Report\"). Selected highlights are shown below and should be read in conjunction with the Q1-Report.First Quarter 2021 HighlightsIn the first quarter of 2021, Pine Cliff generated the highest total revenue and adjusted funds flow since the second quarter of 2017.Highlights from Pine Cliff's first quarter ended March 31, 2021 include:generated $35.5 million from commodity sales for the three months ended March 31, 2021, 40% higher than the $25.4 million generated for the three months ended March 31, 2020;generated $10.0 million of adjusted funds flow ($0.03 per basic share) for the three months ended March 31, 2021, 867% higher than the $1.2 million generated for the three months ended March 31, 2020;net debt decreased by 16% or $9.9 million from $63.0 million on December 31, 2020, to $53.1 million as at March 31, 2021 and is Pine Cliff's lowest net debt level since the first quarter of 2019;produced an average of 18,307 Boe/d (90% natural gas) in the three months ended March 31, 2021, 4% less than the same period in 2020; andrealized $3.14 per Mcf natural gas price for the three months ended March 31, 2021, consistent with the AECO 5A benchmark of $3.14 per Mcf.OutlookThe $10.0 million of adjusted funds flow generated in the first quarter of 2021 is higher than the adjusted funds flow generated in each of the two most recently completed fiscal years and reflects a fundamental shift in natural gas pricing. On January 1, 2021, the forward AECO 5A price for calendar 2021 was $2.47 per Mcf and this morning, the forward AECO 5A price for the remainder of 2021 was $3.00 per Mcf.The increase in AECO forward pricing to levels not witnessed for several years is due to many factors, including increased demand in North America, increased LNG exports from the United States, and the requirement to refill natural gas storage levels in Canada, the United States and Europe before ...