Slide 1: Long-term Value Focus
TSX: PNE WWW.PINECLIFFENERGY.COM Long-term Value Focus Q2 2026 Quarterly Report
Slide 2: President's Letter Q2 - 2026
PRESIDENT’S LETTER Q2 - 2026 This second quarter was characterized by the most material energy infrastructure announcements in Canadian history. It also had substantial swings in commodity prices, particularly for oil. Thankfully, Canadian natural gas prices were stronger than in Q2 last year and fo
Slide 3: President's Letter Q2 - 2026: Outlook
PRESIDENT’S LETTER Q2 - 2026 Outlook We believe that the stronger AECO prices this summer compared to last year reflect the positive impact that LNG Canada Phase 1 has had on natural gas storage balances in Western Canada. LNG Canada Phase 1 exports were sporadic in July but appear to be regaining t
Slide 4: Management Discussion and Analysis Q2 - 2026
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 This Management’s Discussion and Analysis (“MD&A”) is a review of the operations and current financial position of Pine Cliff Energy Ltd. (“Pine Cliff” or the “Company”) for the period ended June 30, 2026. This MD&A is dated and based on information availa
Slide 5: Management Discussion and Analysis: Financial and Operating Summary
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 Three months ended Six months ended June 30, June 30, 2026 2025 2026 2025 ($000s, unless otherwise indicated) FINANCIAL Commodity sales (before royalties) 42,692 41,850 86,537 91,328 Cash provided by operating activities 2,913 7,715 15,173 19,203 Adjusted
Slide 6: Sensitivities
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 SENSITIVITIES Pine Cliff’s results are sensitive to changes in the business environment in which it operates. The following chart shows the Company’s sensitivity to key commodity price variables. The sensitivity calculations are performed independently sho
Slide 7: Management Discussion and Analysis: Commodity Prices
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 In the three and six months ended June 30, 2026, the AECO daily benchmark was 4% and 6% lower compared to the same period of 2025. Price fluctuations from quarter to quarter are mainly due to supply and demand factors including North American industrial an
Slide 8: Commodity Sales
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 COMMODITY SALES Three months ended June 30, Six months ended June 30, ($000s) 2026 2025 % Change 2026 2025 % Change Natural gas 20,579 23,180 (11) 46,027 49,553 (7) NGLs 11,764 9,318 26 21,758 20,884 4 Crude oil 10,349 9,352 11 18,752 20,891 (10) Total com
Slide 9: Transportation Costs and Net Operating Expenses
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 TRANSPORTATION COSTS Three months ended June 30, Six months ended June 30, ($000s) 2026 2025 % Change 2026 2025 % Change Total transportation costs 2,698 3,007 (10) 5,476 6,035 (9) $ per Boe 1.50 1.56 (4) 1.52 1.57 (3) $ per Mcfe 0.25 0.26 (4) 0.25 0.26 (3
Slide 10: Depletion and Depreciation
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 As at June 30, 2026, the Company had 26,719,511 stock options outstanding, representing 7.4% of Common Shares outstanding (June 30, 2025 – 28,571,370; 8.0% of Common Shares outstanding) and 6,216,966 awards outstanding (RSUs and DSUs), representing 1.7% of
Slide 11: Decommissioning Provision
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 DECOMMISSIONING PROVISION The total current and long-term decommissioning provision of $209.7 million was estimated by management based on the Company’s working interest and estimated costs to remediate, reclaim and abandon its wells, pipelines, and facili
Slide 12: Demand Loan
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 Demand Loan The Company has a demand loan (the “Demand Loan”) of $15.0 million with a Canadian chartered bank, of which $0.8 million was drawn at June 30, 2026 (December 31, 2025 - $nil). Borrowings bear interest at the bank’s prime rate plus 2.0%. Letters
Slide 13: Commitments and Contingencies
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 COMMITMENTS AND CONTINGENCIES As at June 30, 2026, the Company has the following commitments and other contractual obligations: 2026 2027 2028 2029 2030 Thereafter ($000s) Accounts payable and accrued liabilities 35,929 - - - - - Demand Loan1 770 - - - - -
Slide 14: Quarterly Trends and Selected Financial Information
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 QUARTERLY TRENDS AND SELECTED FINANCIAL INFORMATION ($000s, unless otherwise indicated) Q2-2026 Q1-2026 Q4-2025 Q3-2025 Q2-2025 Q1-2025 Q4-2024 Q3-2024 FINANCIAL Total revenue 39,456 42,889 41,352 37,605 39,605 45,990 43,860 42,058 Cash provided by operati
Slide 15: Management Discussion and Analysis Q2 - 2026
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 • Net loss was recorded in the first quarter of 2026 compared to net income in the fourth quarter of 2025, primarily due to gains recognized on asset dispositions in the fourth quarter of 2025. Net loss increased in the second quarter of 2026 compared to t
Slide 16: Physical Sales Contracts
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 in reduced production of natural gas, NGLs and crude oil and a reduction in the volumes of Pine Cliff’s reserves. Management may also elect not to produce from certain wells at lower prices. Physical Sales Contracts Pine Cliff enters into physical delivery
Slide 17: Commodity Price and Interest Rate Risk
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 A 10% increase in natural gas prices would decrease the unrealized gain on financial derivative risk management contracts from $1.4 million to an unrealized loss of $0.3 million, resulting in an increase to the loss before income taxes of $1.7 million, ass
Slide 18: Liquidity Risk
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 monitoring forecasted and actual cash provided by (used in) operating, financing and investing activities and opportunities to issue additional equity. Pine Cliff actively monitors its credit and working capital to ensure that it has sufficient available f
Slide 19: Non-GAAP Measures: Adjusted Funds Flow
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 funds flow per Common Share and per Boe or Mcfe should not be considered as an alternative to, or more meaningful than, cash flow provided by operating activities presented on the statement of cash flow which is considered the most directly comparable meas
Slide 20: Net Debt and Forward-Looking Information
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 Net Debt The Company considers net debt to be a key indicator of leverage. Net debt is calculated as the sum of accounts receivable, cash and prepaid expenses and deposits, less Demand Loan, Term Loan and accounts payable and accrued liabilities. See “DEBT
Slide 21: Glossary
MANAGEMENT DISCUSSION AND ANALYSIS Q2 -2026 GLOSSARY The following is a list of abbreviations that may be used in the MD&A: Measurement Bbl/d1 – barrels per day Boe/d1 – barrels of oil equivalent per day Mcf/d1 – thousand cubic feet per day Mcfe/d1 – thousand cubic feet equivalent per day MBoe – tho
Slide 22: Interim Condensed Consolidated Statements of Financial Position
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 – 2026 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Canadian dollars, 000s) (unaudited) As at June 30, As at December 31, Note 2026 2025 ASSETS Current assets Cash - 4,066 Accounts receivable 4 19,640 20,781 Prepaid expenses
Slide 23: Interim Condensed Consolidated Statements of Comprehensive Loss
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 – 2026 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Canadian dollars, 000s except per share data) (unaudited) Three months ended June 30, Six months ended June 30, Note 2026 2025 2026 2025 REVENUE Commodity sales 12 42,692 41
Slide 24: Statements of Changes in Shareholders' Equity (Deficit)
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 – 2026 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT) (Canadian dollars, 000s) (unaudited) Note Share capital Contributed surplus1 Deficit Total Shareholders’ equity BALANCE AT JANUARY 1, 2025 278,982 21,4
Slide 25: Interim Condensed Consolidated Statements of Cash Flows
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 – 2026 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Canadian dollars, 000s) (unaudited) Three months ended June 30, Six months ended June 30, Note 2026 2025 2026 2025 CASH PROVIDED BY (USED IN): OPERATING ACTIVITIES Net loss for the
Slide 26: Notes to the Interim Condensed Consolidated Financial Statements
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS As at June 30, 2026 and December 31, 2025, and for the three and six month periods ended June 30, 2026 and 2025 (unaudited). All tabular amounts in Canadian dollars 000s, un
Slide 27: Notes: Financial Instruments
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 financial instruments. Assessment of the significance of a particular input to the fair value measurement requires judgement and may affect the placement within the fair value hierarchy level. The following table sets out the Company’s cl
Slide 28: Notes: Physical Natural Gas Sales Contracts
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 At June 30, 2026, the Company had the following physical natural gas sales contracts in place: Delivery Physical Delivery Contract Price Contract Price Contractual Term Point Quantity (GJ/day) ($CAD/GJ)1 ($CAD/Mcf)1,2 July 1, 2026 to Octo
Slide 29: Notes: Interest Rate Risk
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 Interest Rate Risk Interest rate risk refers to the risk that the value of a financial instrument or funds flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interes
Slide 30: Notes: Contractual Maturities of Financial Liabilities
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 and could ultimately require the Company to pursue alternative sources of funding. Any of these events could affect Pine Cliff’s ability to fund ongoing operations. The following table details the contractual maturities of Pine Cliff’s fi
Slide 31: Notes: Lease Liabilities
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 7. LEASE LIABILITIES Pine Cliff had the following future commitments associated with its lease liabilities: ($000s) 2026 736 2027 1,062 2028 716 2029 417 2030 100 Total lease payments as at June 30, 2026 3,031 Amounts representing interes
Slide 32: Notes: Term Loan Covenants and Demand Loan
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 “Asset Coverage Ratio” is defined as the proved developed producing reserves of the Company (before income tax, discounted at 10%), as evaluated by an independent third-party engineering report and evaluated on strip commodity pricing, di
Slide 33: Notes: Share Capital
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 11. SHARE CAPITAL Authorized The Company is authorized to issue an unlimited number of Common Shares without nominal or par value. Common Shares carry one vote per share and the right to any dividends declared. The Company is also authori
Slide 34: Notes: Stock Options and Loss per Share
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 Stock options Weighted-average Stock options Weighted-average Exercise price: outstanding (000s) remaining term (years) exercisable (000s) remaining term (years) $0.55 - $0.99 15,095 2.5 2,119 0.9 $1.00 - $1.25 7,543 1.4 3,771 0.9 $1.26 -
Slide 35: Notes: Finance Expenses and Commitments
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q2 - 2026 Three months ended June 30, Six months ended June 30, Finance expenses: 2026 2025 2026 2025 Interest and debt charges 1,324 1,982 2,482 3,841 Noncash: Accretion on decommissioning provision 1,968 1,902 3,895 3,806 Accretion on term loan 6
Slide 36: Corporate Information Q2 - 2026
CORPORATE INFORMATION Q2 - 2026 BOARD OF DIRECTORS REGISTRAR AND TRANSFER AGENT Hilary A. Foulkes - Chair Odyssey Trust Company of Canada Robert B. Fryk Philip B. Hodge AUDITORS Calvin B. Jacober Deloitte LLP Jacqueline R. Ricci STOCK LISTINGS Toronto Stock Exchange (“TSX”) OFFICERS Trading Symbol: