PNE's outlook...As indicated, 2023 saw North America experience one of the warmest Januarys in recorded history. This warm weather, coupled with the ongoing Freeport LNG export facility outage in Texas and resulted in a 41% reduction in Henry Hub natural gas pricing in 01/23.
Although AECO pricing moved lower during this time, AECO Daily 5A still averaged $3.72 per Mcf in January. The AECO Daily 5A price this morning is $3.33 Mcf and the forward AECO strip price for the remainder of 2023 is $2.94 Mcf. At these projected prices, Pine Cliff is on track to generate the second highest annual adjusted funds flow in our history.
At today’s strip prices, PNE's capital and dividend program for 2023 can be fully funded from Pine Cliff’s forecasted adjusted funds flow.