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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 May 13, 2022 4:34pm
210 Views
Post# 34682948

Just a thought...

Just a thought...No matter what's happening in the stock market right now, natural gas shortage is still here and it most likely won't change for a few years to come.

If we take $7.25 as the average strip price for Q2, we'll be looking at ~$43MM in FCF for April-June or ~$172MM annualized. PNE can easily pay off their debt by the end of this year and still have a treasure chest of FCF for a growth wedge and further enhancement of shareholder value via an increased dividend or "special" dividend.

Personally, I don't see share buybacks as being an issue in PNE's case... the stock is ~30% owned by insiders and it's obviously important that the company maintain liquidity in the stock.

Forecasts are for NG to be $8 by the end of 2022 and $9 by the end of 2023. If this comes to fruition, we'll be well above today's share price.

Have a great weekend folks!

 
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