Business
Pine Cliff Energy Ltd. Announces Third Quarter 2021 Results and Update to 2021 Guidance
Calgary, Alberta--(Newsfile Corp. - November 4, 2021) - Pine Cliff Energy Ltd. ( TSX: PNE ) ("...
About this update from Pine Cliff Energy Ltd.
[{"type":"text","content":"Pine Cliff Energy Ltd. Announces Third Quarter 2021 Results and Update to 2021 GuidanceCalgary, Alberta--(Newsfile Corp. - November 4, 2021) - Pine Cliff Energy Ltd. (TSX: PNE) (\"Pine Cliff\" or the \"Company\") is pleased to announce the filing of its third quarter financial and operating results (the \"Q3-Report\"). Selected highlights are shown below and should be read in conjunction with the Q3-Report.Third Quarter 2021 HighlightsThe Company benefited from AECO 5A benchmark pricing averaging $3.58 per mcf for the quarter, resulting in Pine Cliff generating positive adjusted funds flow of $13.3 million. Highlights from Pine Cliff's third quarter ended September 30, 2020 include:repaid in full $19.0 million of Term Debt due July 31, 2022;generated $13.3 million of adjusted funds flow ($0.04 per basic and fully diluted share) for the three months ended September 30, 2021, and $32.8 million ($0.10 per basic share and $0.09 per fully diluted share) for the nine months ended September 30, 2021;the adjusted funds flow of $32.8 million for the nine months ended September 30, 2021, is the highest adjusted funds flow for the first nine months of the year in the history of Pine Cliff;generated net earnings of $2.3 million ($0.01 per basic and fully diluted share) for the three months ended September 30, 2021, and $0.1 million ($0.00 per basic and fully diluted share) for the nine months then ended; net debt decreased by 34% or $21.6 million from $63.0 million on December 31, 2020, to $41.4 million as at September 30, 2021 and is Pine Cliff's lowest net debt level since the third quarter of 2015; anddrilled 2 gross (2.0 net) Pekisko oil wells and 2 gross (0.4 net) Ellerslie natural gas wells that were all on production by the end of October 2021.Outlook In Q3 2021, the benchmark AECO natural price was $3.58 per Mcf, a level not seen for a comparable third quarter since 2014. Higher natural gas prices in North America are reacting to supply and demand factors including North American industrial and residential demand, increases in liquefied natural gas exports due to increased demand in Europe and Asia, natural gas exports to Mexico, weather and economic conditions in producing and consuming regions throughout North America. The strengthening of forward AECO natural gas prices has continued into Q4, where today, spot daily AECO 5A ...