Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Pine Cliff Energy Ltd T.PNE

Alternate Symbol(s):  PIFYF

Pine Cliff Energy Ltd. is a Canada-based natural gas and crude oil company. The Company is engaged in the acquisition, exploration, development and production of natural gas and oil in the Western Canadian Sedimentary Basin and also conducts various activities jointly with others. The Company's operating areas include Central Assets, Edson Assets and Southern Assets. Its Central Assets include Ghost Pine and Viking Kinsella areas of Central Alberta. Its Southern Assets includes Monogram unit, Many Islands / Hatton properties, Pendor, Black Butte and Eagle Butte areas. Its Edson Assets include Pine Cliff with its first core area in the Western Canadian Sedimentary Basin. It operates and sells its natural gas to the common Alberta natural gas price hub.


TSX:PNE - Post by User

Post by zack50on Sep 27, 2021 3:50pm
235 Views
Post# 33925344

What will the PNE Board decide to do with increased CF?

What will the PNE Board decide to do with increased CF?Two things that will undoubtedly draw new investors to buy PNE stock will be CF and return of capital.

The CF for 2021 could now be between $40M - $50M and with every reason to believe that the price of NG will stay high for the near future, we could be looking at a CF of $100M - $100M+ for 2022 and into 2023. With such large amounts of capital to allocate, this begs the question... "What will PNE do with that treasure chest of money?"

There are a number of possibiities...

1. Share buyback... probably not...  ~40% of PNE shares are held by 6 shareholders.

2. Pay down debt... some... debt is ~$42M and is owned by major shareholders and is not due for 3 yrs.

3. New drilling... probably not... decline rate is ~7% and is lowest in Canada... average is around 23%.

4. Aquisitions... maybe, but not really necessary with low decline rate.

5.  Return of capital... DIVIDENDS... a return of capital to shareholders in the form of a dividend seems the most plausible 
to me and of course if serves to draw new investors, thus increasing the share price of PNE.

Hopefully, this is thte scenario that PNE's Board decides to implement in the very near future!



<< Previous
Bullboard Posts
Next >>