First Quarter 2022 Highlights
Pine Cliff's adjusted funds flow of $32.3 million generated during the first quarter of 2022 was the highest quarterly adjusted funds flow for the Company since inception.
Highlights from the first quarter include:
- generated $32.3 million of adjusted funds flow ($0.09 per basic and fully diluted share) for the three months ended March 31, 2022, 223% higher than the $10.0 million generated for the three months ended March 31, 2021;
- net debt decreased by 50% or $24.9 million from $49.7 million on December 31, 2021, to $24.8 million at March 31, 2022;
- generated net earnings of $15.4 million ($0.05 per basic and $0.04 per fully diluted share) for the three months ended March 31, 2022, compared to a net loss of $0.1 million ($0.00 per basic share) for the comparable period in 2021;
- production averaged 20,397 Boe/d for the three months ended March 31, 2022, 2,090 Boe/d or 11% higher than the 18,307 Boe/d for the comparable period in 2021;
- repaid $10.0 million of term debt due December 31, 2024 during the first quarter of 2022; and
- completed and tied-in two (1.4 net) Pekisko oil wells drilled in the fourth quarter of 2021 and drilled, completed and tied in one (0.3 net) Notikewin natural gas well.
Dividend Launch
The Company's Board of Directors (the "Board") has approved the declaration and payment of a monthly dividend in the amount of $0.0083 per common share ($0.10 per common share annualized). The first monthly dividend is payable June 30, 2022, to shareholders of record on June 15, 2022.
At today's closing share price of $1.79 per common share, this initial dividend calculates to be a 5.6% annual yield.
Dividends paid on Pine Cliff's common shares will be designated as "eligible dividends" for Canadian federal income tax purposes. The declaration of dividends is at the sole discretion of the Board and will be evaluated on a regular basis.
Repayment of Term Debt
In addition to the $10.0 million of term debt repaid during the first quarter, Pine Cliff repaid a further $10.0 million on April 29, 2022, reducing the amount of long term debt currently outstanding to $22.0 million. The Company intends to use available free funds flow to fully retire the remaining long term debt.
Operational Update
The two Pekisko oil wells (1.4 net) that were placed on production on February 15, 2022 are both continuing to significantly outperform both our internal and our independent engineers' average type curves. The average gross IP30 rates for both wells was 567 Boe/d (259 Bbl/d oil, 50 Bbl/d natural gas liquids and 1,551 Mcf/d natural gas). The all-in capital costs averaged $3.2 million per well ($2.3 million net).
Further information on our well results can be found on Pine Cliff's website at www.pinecliffenergy.com.
Financial and Operating Results
| | | | | Three months ended March 31, | |
| | | | | | | 2022 | | | 2021 | |
| ($000s, unless otherwise indicated) | | | | | | |
| Commodity sales (before royalty expense) | | 66,180 | | | 35,519 | |
| Cash provided by operating activities | | 23,871 | | | 8,471 | |
| Adjusted funds flow1 | | 32,307 | | | 10,000 | |
| Per share - Basic ($/share)1 | | 0.09 | | | 0.03 | |
| Per share - Diluted ($/share)1 | | 0.09 | | | 0.03 | |
| Earnings/(Loss) | | 15,433 | | | (680 | ) |
| Per share - Basic ($/share)1 | | 0.05 | | | (0.00 | ) |
| Per share - Diluted ($/share)1 | | 0.04 | | | (0.00 | ) |
| Capital expenditures | | 5,567 | | | 368 | |
| Acquisitions | | 272 | | | - | |
| Dispositions | | (202 | ) | | (25 | ) |
| Net Debt1 | | 24,752 | | | 45,292 | |
| Production (Boe/d) | | 20,397 | | | 18,307 | |
| Percent Natural Gas (%) | | 88% | | | 90% | |
| Weighted-average common shares outstanding (000s) | | | | | | |
| Basic | | 340,835 | | | 335,556 | |
| Diluted | | 349,304 | | | 335,556 | |
| Combined sales price ($/Boe) | | 36.05 | | | 21.56 | |
| Operating netback ($/Boe)1 | | 19.41 | | | 7.88 | |
| Corporate netback ($/Boe)1 | | 17.60 | | | 6.05 | |
| Operating netback ($ per Mcfe)1 | | 3.24 | | | 1.31 | |
| Corporate netback ($ per Mcfe)1 | | 2.93 | | | 1.01 | |