Pine Cliff Energy Ltd. Boosts Reserves, Declares Dividend Amidst Challenging Market Conditions

Pine Cliff Energy Ltd. (TSX: PNE) (OTCQX: PIFYF) has announced its 2024 annual results, filing of disclosure documents, year-end reserves, and dividend declaration, showcasing the company's resilience amidst challenging market conditions. The company's adjusted funds flow, production, and net income all decreased compared to 2023, primarily due to lower commodity prices. However, Pine Cliff's year-end reserves increased significantly, driven by extensions, improved recoveries, and lower lease operating expenses, offsetting the impact of lower natural gas benchmark pricing.

Key Financial Highlights:

* Adjusted funds flow: $38.0 million ($0.11 per share) in Q4 2024 and $163.2 million ($0.47 per share) in 2024, down from $9.7 million ($0.03 per share) and $58.7 million ($0.17 per share) in the same periods in 2023.
* Production: Averaged 22,738 Boe/d in Q4 2024 and 23,248 Boe/d in 2024, representing a 6% increase and 13% increase from the comparable periods in 2023.
* Net income: A loss of $5.6 million ($0.02 per share) in Q4 2024 and $21.4 million ($0.06 per share) in 2024, compared to net income of $0.8 million ($0.00 per share) and $9.1 million ($0.03 per share) in the same periods in 2023.

Reserve Report Highlights:

* Net present value for proved plus probable ("P+P") reserves of $548.1 million, discounted at 10%, an increase of $71.3 million, or 15%, from December 31, 2023.
* Pine Cliff increased its 2024 P+P reserves by 13.5 MMBoe (20%) prior to adjusting for 2024 production, representing a reserve replacement ratio of 158%.
* Remaining P+P reserves of 94.1 MMBoe (70% conventional natural gas and coal bed methane) at December 31, 2024 increased 5.5% from 89.2 MMBoe (84% conventional natural gas and coal bed methane) at December 31, 2023.

Dividend Declaration:

* Pine Cliff declared a regular monthly dividend of $0.005 per common share, down from the previous dividend of $0.01 per share.

Corporate Outlook:

* Pine Cliff's Board of Directors has approved a 2025 capital budget of $27.9 million to be fully funded from adjusted funds flow.
* The company expects to spend approximately $9.6 million drilling four (3.4 net) Pekisko oil wells in Central Alberta, $4.4 million drilling four (1.0 net) Ellerslie natural gas wells in the Edson area, $4.0 million for the completion of two (1.4 net) Pekisko oil wells drilled in the fourth quarter of 2024, and $3.9 million on abandonments and reclamation.

Pine Cliff Energy Ltd.'s 2024 annual results demonstrate the company's ability to navigate challenging market conditions and maintain a strong reserve base. Despite a decrease in adjusted funds flow, production, and net income, the company's year-end reserves increased significantly, driven by extensions, improved recoveries, and lower lease operating expenses. The company's dividend declaration reflects its commitment to returning value to shareholders, although at a lower level than in previous years. Pine Cliff's corporate outlook for 2025 indicates a focus on capital expenditures to maintain and grow production, while also addressing abandonment and reclamation activities.