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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

Comment by Maxmoeon Oct 31, 2023 11:35am
200 Views
Post# 35709275

RE:RE:New acquisition

RE:RE:New acquisitionAddendum. I was thrown by the comments about adding lots of oil. This acquisition will barely move the needle on oil vs gas reserves and production. It's 50/50 going into PNE which is more like 90/10 gas. Pne is about 4X the size so quick math, the ratio goes to 80%. Still plenty gassy for me. The valuation is "reasonable". Certainly not overpaying for assets in a hot market, but not bargain pricing either. Looks to me like it's a buyers market still in Calgary with no hot capital chasing assets. I'll wait to get "the package" to review the devil in the details. I do NOT trust any "private" aka loanshark debt financing. Prime plus 3.65% sounds okay, but let's see the covenants, the "standby" fees, the structuring fees, and all the other hunks of flesh the hyenas ripoff the hide. Any warrants with the debt?  Hope not. I still wince thinking about how ATH was bent over the barrel to get their debt refinancing. Other bit of good news is they didn't use PNE stock as currency. Pne stock is just too undervalued to justify buying any assets unless those assets are even cheaper. Also, we won't face a wall of stock from the Certus shareholders liquidating as their stock becomes free trading. That's not a factor here at all. So I'll stick around for another dividend, but I'll miss owning a producer with NO debt, net cash. 
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