Pine Cliff Energy Ltd. · TSX:PNE
Pine Cliff Energy — Q1 2026 Earnings Presentation
36 slides from Pine Cliff Energy's earnings presentation, May 6, 2026
Slide 1: Long-term Value Focus – Q1 2026 Quarterly Report
TSX: PNE WWW.PINECLIFFENERGY.COM Long-term Value Focus Q1 2026 Quarterly Report
Slide 2: President's Letter Q1 2026
PRESIDENT’S LETTER Q1 - 2026 The Pine Cliff team successfully navigated significant commodity price volatility through the start of 2026. The Q4 2025 momentum in AECO gas prices eased amid LNG Canada start-up delays and warm weather in February, followed by a sudden and sharp return of geopolitical
Slide 3: President's Letter Q1 2026 – Outlook
PRESIDENT’S LETTER Q1 - 2026 Webcast Pine Cliff will host a webcast at 9:00 AM MDT (11:00 AM EDT) on Wednesday, May 6, 2026. Participants can access the live webcast via Pine Cliff Energy Q1 Webcast or through the link provided on our website at www.pinecliffenergy.com. A recorded archive of the web
Slide 4: Management Discussion and Analysis Q1 2026
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -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 March 31, 2026. This MD&A is dated and based on information avail
Slide 5: Financial and Operating Summary
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 Three months ended March 31, 2026 2025 ($000s, unless otherwise indicated) FINANCIAL Commodity sales (before royalties) 43,845 49,478 Cash provided by operating activities 12,260 11,488 Adjusted funds flow1 9,602 11,506 Per share – Basic and diluted ($/sha
Slide 6: Sensitivities
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -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: Commodity Price Environment
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 In the three months ended March 31, 2026, the AECO daily benchmark was 7% 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 and residential
Slide 8: Commodity Sales
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 COMMODITY SALES Three months ended March 31, ($000s) 2026 2025 % Change Natural gas 25,448 26,373 (4) NGLs 9,994 11,566 (14) Crude oil 8,403 11,539 (27) Total commodity sales 43,845 49,478 (11) % of revenue from natural gas sales 58% 53% 5 Realized Prices
Slide 9: Transportation and Net Operating Expenses
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 For the three months ended March 31, 2026, total transportation costs of $2.8 million decreased from $3.0 million in the corresponding period of the prior year. On a per Boe basis, transportation expenses decreased 3% to $1.54 per Boe for the three months
Slide 10: Depletion, Depreciation and Impairment Assessment
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 Depletion and depreciation expense for the three months ended March 31, 2026, totaled $10.2 million compared to $11.6 million in the corresponding period of the prior year. The decrease for the period is primarily a result of lower production volumes and a
Slide 11: Decommissioning Liabilities and Term Loan
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 At March 31, 2026, the estimated total undiscounted and uninflated amount required to settle the decommissioning liabilities was $328.5 million (December 31, 2025 - $328.6 million). The discounted and inflated amount required to settle the decommissioning
Slide 12: Demand Loan Covenant and Liquidity
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 The Company is subject to the following financial covenant under its Demand Loan: • Senior Debt to EBITDA, as defined herein, ratio shall not exceed 3.0:1.0 at the end of each quarter-end. “Senior Debt” is defined as any secured indebtedness for borrowed m
Slide 13: Commitments and Contingencies
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 COMMITMENTS AND CONTINGENCIES As at March 31, 2026, the Company has the following commitments and other contractual obligations: 2026 2027 2028 2029 2030 Thereafter ($000s) Accounts payable and accrued liabilities 37,647 - - - - - Term Loan1 6,619 7,232 34
Slide 14: Quarterly Trends and Selected Financial Information
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 QUARTERLY TRENDS AND SELECTED FINANCIAL INFORMATION ($000s, unless otherwise indicated) Q1-2026 Q4-2025 Q3-2025 Q2-2025 Q1-2025 Q4-2024 Q3-2024 Q2-2024 FINANCIAL Total revenue 42,889 41,352 37,605 39,605 45,990 43,860 42,058 46,611 Cash provided by operati
Slide 15: Financial Instruments
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 • Total revenue increased in the first quarter of 2026 compared to the fourth quarter of 2025 primarily due to higher realized commodity prices, partially offset by lower sales volumes. OFF BALANCE SHEET TRANSACTIONS Pine Cliff was not involved in any off-
Slide 16: Physical Natural Gas Sales Contracts
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 At March 31, 2026, the Company had the following physical natural gas sales contracts in place: Delivery Physical Delivery Contract Price Contract Price Contractual Term Point Quantity (GJ/day) ($CAD/GJ)1 ($CAD/Mcf)1,2 April 1, 2026 to October 31, 2026 AEC
Slide 17: Interest Rate Risk
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -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 interest bearing financia
Slide 18: Liquidity Risk and Contractual Maturities
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 capital deficit and comply with EBITDA-based covenants disclosed in the Term Loan note herein 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 operation
Slide 19: Non-GAAP Measures
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 Boe or Mcfe is calculated using the sales volumes reported for a reporting period. Pine Cliff’s method of calculating this measure may differ from other companies, and accordingly, it may not be comparable to measures used by other companies. Three months
Slide 20: Forward-Looking Information
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -2026 FORWARD-LOOKING INFORMATION Certain statements contained in this MD&A include statements which contain words such as “anticipate”, “could”, “should”, “expect”, “seek”, “may”, “intend”, “likely”, “will”, “believe” and similar expressions, statements relatin
Slide 21: Glossary
MANAGEMENT DISCUSSION AND ANALYSIS Q1 -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: Statements of Financial Position
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Canadian dollars, 000s) (unaudited) As at March 31, As at December 31, Note 2026 2025 ASSETS Current assets Cash 3,301 4,066 Accounts receivable 4 19,514 20,781 Prepaid expe
Slide 23: Statements of Comprehensive Loss
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Canadian dollars, 000s except per share data) (unaudited) Three months ended March 31, Note 2026 2025 REVENUE Commodity sales 12 43,845 49,478 Royalty expense (3,416) (4,882
Slide 24: Statements of Changes in Shareholders' Equity (Deficit)
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 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: Statements of Cash Flows
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Canadian dollars, 000s) (unaudited) Three months ended March 31, Note 2026 2025 CASH PROVIDED BY (USED IN): OPERATING ACTIVITIES Net loss for the period (1,647) (2,737) Items not af
Slide 26: 1. Nature of Business
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS As at March 31, 2026 and December 31, 2025, and for the three month periods ended March 31, 2026 and 2025 (unaudited). All tabular amounts in Canadian dollars 000s, unless o
Slide 27: Interim Condensed Consolidated Financial Statements Q1 2026
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 Assets and liabilities that are measured at fair value are classified into levels, reflecting the method used to make the measurements. Level 1 fair value measurements are based on quoted prices that are available in active markets for id
Slide 28: Physical Natural Gas Sales Contracts
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 At March 31, 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 April 1, 2026 to Oc
Slide 29: Interest Rate Risk
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 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: Liquidity Risk and Contractual Maturities
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 Company’s ability to resolve its working capital deficit and comply with EBITDA-based covenants disclosed in note 8, and could ultimately require the Company to pursue alternative sources of funding. Any of these events could affect Pine
Slide 31: 7. Lease Liabilities
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 7. LEASE LIABILITIES Pine Cliff had the following future commitments associated with its lease liabilities: ($000s) 2026 1,043 2027 886 2028 540 2029 241 2030 19 Total lease payments as at March 31, 2026 2,729 Amounts representing interes
Slide 32: Term Loan Covenant Definitions
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 “Consolidated Debt” is defined as all indebtedness for borrowed money, including issued and drawn letters of credit or letters of guarantee other than letters of credit supported by a performance guarantee from Export Development Canada.
Slide 33: 11. Share Capital
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 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: Loss per Share and Commodity Sales
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 Three months ended March 31, Loss per share calculation ($000s): 2026 2025 Numerator Net loss for the period (1,647) (2,737) Denominator (000s) Weighted-average Common Shares outstanding – 358,792 358,178 Basic Dilutive effect of options
Slide 35: 14. Commitments
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Q1 - 2026 14. COMMITMENTS As at March 31, 2026, the Company has the following commitments and other contractual obligations: 2026 2027 2028 2029 2030 Thereafter ($000s) Accounts payable and accrued liabilities 37,647 - - - - - Term Loan1 6,619 7,23
Slide 36: Corporate Information Q1 2026
CORPORATE INFORMATION Q1 - 2026 BOARD OF DIRECTORS REGISTRAR AND TRANSFER AGENT William S. Rice – Chair Odyssey Trust Company of Canada Hilary A. Foulkes Robert B. Fryk AUDITORS Philip B. Hodge Deloitte LLP Calvin B. Jacober Jacqueline R. Ricci STOCK LISTINGS Toronto Stock Exchange (“TSX”) OFFICERS