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Pine Cliff Energy (TSE:PNE)
TSX:PNE
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Pine Cliff Energy
(TSX:PNE)
Rating:49Neutral
Price Target:―
Pine Cliff Energy (PNE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$207.85M
Dividend Yield10.52%
Average Volume (3M)169.03K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth2.24%
EPS Growth-332.95%
CountryCA
Employees103
SectorEnergy
Sector Strength40
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.01
Shares Outstanding358,353,760
10 Day Avg. Volume111,589
30 Day Avg. Volume169,030
Financial Highlights & Ratios
PEG Ratio-1.66
Price to Book (P/B)4.19
Price to Sales (P/S)0.00
P/FCF Ratio8.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.96Price Target Upside67.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Pine Cliff Energy Business Overview & Revenue Model
Company DescriptionPine Cliff Energy Ltd. (PNE) is a Canadian natural resource company primarily engaged in the exploration, development, and production of natural gas, oil, and natural gas liquids. The company operates within the energy sector with a focus on acquiring and managing high-quality, long-life natural gas assets concentrated in Alberta and Saskatchewan. Pine Cliff Energy is committed to creating value through sustainable and efficient resource management while maintaining strong environmental and safety standards.
How the Company Makes MoneyPine Cliff Energy makes money through the production and sale of natural gas, oil, and natural gas liquids. The company's revenue model is primarily based on the extraction and sale of these resources from its operated and non-operated properties. Key revenue streams include the sale of produced natural gas, which constitutes a significant portion of its income, followed by revenues from oil and natural gas liquids. Pine Cliff Energy's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiencies. The company may also engage in strategic acquisitions or divestitures to optimize its portfolio and enhance cash flow. While Pine Cliff Energy may have partnerships or joint ventures to facilitate operations, specific details on such collaborations are not provided.
Pine Cliff Energy Financial Statement Overview
Summary
Pine Cliff Energy is facing financial challenges with declining revenues and profitability, as well as increased leverage and reduced equity positions. However, their positive operating and free cash flows provide some stability, indicating the company's capability to generate cash to support operations.Income Statement
Pine Cliff Energy has shown fluctuating revenue with a recent decline from 2022 to 2023. The gross profit margin for 2023 was approximately 7.5%, a significant drop from previous years. Net income turned negative in 2024, leading to a negative net profit margin, indicating challenges in profitability. There is also a lack of EBIT and a decrease in EBITDA margin, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has increased in recent years, with a ratio of approximately 0.89 in 2024, indicating higher leverage. Stockholders' equity has decreased significantly, affecting the equity ratio, which stood at about 14.2% in 2024. The return on equity (ROE) was negative in 2024 due to negative net income, pointing to inefficiencies in using equity for profit generation.50
Neutral
Cash Flow
Despite challenges in net income, Pine Cliff Energy generated positive operating cash flow in 2024. The free cash flow was also positive and improved significantly from the previous year, indicating better cash management. The free cash flow to net income ratio is positive due to the positive free cash flow, showcasing operational cash generation capability despite net losses.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 190.73M | 195.63M | 176.26M | 309.99M | 167.72M | 107.32M | Gross Profit |
| 93.34M | 126.53M | 16.11M | 230.15M | 109.71M | 55.64M | EBIT |
| -16.17M | -18.88M | 5.76M | 118.07M | 21.66M | -36.41M | EBITDA |
| 40.44M | 35.24M | 54.12M | 175.29M | 82.18M | 5.27M | Net Income Common Stockholders |
| -19.32M | -21.45M | 9.12M | 108.94M | 81.42M | -55.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 0.00 | 0.00 | 208.00K | 54.60M | 6.87M | 7.88M | Total Assets |
| 373.49M | 381.25M | 477.07M | 375.05M | 379.00M | 288.90M | Total Debt |
| 47.36M | 48.47M | 62.14M | 3.30M | 45.57M | 63.94M | Net Debt |
| 47.36M | 48.47M | 53.70M | -51.13M | 38.70M | 56.06M | Total Liabilities |
| 326.43M | 326.93M | 377.14M | 241.32M | 333.58M | 326.22M | Stockholders Equity |
| 47.06M | 54.32M | 99.93M | 133.73M | 45.42M | -37.32M |
| Cash Flow | Free Cash Flow | ||||
| 22.30M | 21.27M | -63.67M | 121.44M | 28.02M | 1.31M | Operating Cash Flow |
| 25.83M | 23.80M | 66.63M | 150.45M | 49.48M | 8.79M | Investing Cash Flow |
| 6.81M | 6.77M | -133.20M | -36.74M | -30.77M | -10.02M | Financing Cash Flow |
| -32.65M | -30.56M | 12.15M | -66.16M | -19.71M | 445.00K |
Pine Cliff Energy Technical Analysis
Neutral
0.57
Price Trends
0.63
Negative
0.75
Negative
0.81
Negative
Market Momentum
-0.01
Negative
47.48
Neutral
60.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PNE, the sentiment is Neutral. The current price of 0.57 is above the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.63, and below the 200-day MA of 0.81, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 60.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:PNE.
Pine Cliff Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$168.16M | 5.16 | 48.82% | 5.75% | 17.74% | 40.78% | |
76 Outperform | C$218.64M | 9.03 | 20.38% | 8.62% | -10.32% | -12.38% | |
61 Neutral | C$222.96M | 24.30 | 1.69% | 13.53% | -14.73% | -71.36% | |
58 Neutral | C$166.67M | 154.76 | 0.33% | 9.23% | -21.04% | -96.30% | |
57 Neutral | $7.14B | 3.33 | -3.45% | 5.75% | 0.66% | -50.76% | |
49 Neutral | $207.85M | ― | -29.28% | 10.52% | 2.24% | -332.95% | |
36 Underperform | C$218.27M | ― | -57.34% | ― | ― | -104.32% |
* Energy Sector Average
Performance Comparison
TSE:PNE
Pine Cliff Energy
0.57
-0.40
-41.24%
TSE:ALV
Alvopetro Energy
6.00
1.40
30.43%
TSE:SEI
Sintana Energy
0.56
-0.82
-59.42%
TSE:IPO
InPlay Oil Corp.
8.05
-3.69
-31.43%
TSE:PRQ
Petrus Resources
1.29
0.05
4.03%
TSE:HME
Hemisphere Energy
1.75
0.22
14.38%
Pine Cliff Energy Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 10.04%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial start to the year, with significant cash flow improvements and effective debt reduction. The company's strategic hedging positions them well against potential market volatility. However, production challenges due to weather and delays in bank transitions posed minor setbacks.Q1-2025 Updates
Positive Updates
Strong Financial Performance
The first quarter was one of the strongest quarters from a cash flow perspective in about eight quarters, due to favorable AECO market prices over $3.
Debt Reduction Progress
Term loan reduced by 19% since inception, standing at just below $45 million at the end of Q1, highlighting a strong focus on debt repayment.
Hedging Strategy Success
Achieved a realized natural gas price of $2.90/Mcf, which is a premium over the AECO average price of $2.16/Mcf in Q1. Forward hedging prices for 2026 are over $3/Mcf, and for winter 2026-2027, prices are into the $3.50-$3.60 range.
Increased LNG Demand
Anticipated increase in LNG export demand with US exports potentially reaching 17-17.5 Bcf/day by the end of 2025, which is positive for natural gas producers.
Negative Updates
Production Challenges
Q1 production was lower due to freeze-offs, although financial results were not negatively impacted.
Bank Transition Delays
Transition to a new bank platform caused delays in bank reviews, extending the demand loan timeline.
Company Guidance
During the first quarter of fiscal year 2025, Pine Cliff Energy reported a strong performance with over $3 forward prices in the AECO market, marking one of the strongest quarters in cash flow terms over the past eight quarters. The company has strategically hedged about 50% of its production, particularly for the summer months of Q2 and Q3, to mitigate weaker AECO prices. Their CapEx budget for the year is set at $12.5 million, with plans to allocate spending optimally in the back half of the year. The company is actively managing its debt, with a demand loan extended at $15 million and a term loan reduced by 19% since inception, aiming for a debt to cash flow ratio of around one by the end of the year. Pine Cliff is closely monitoring potential opportunities in LNG demand, data centers, and acquisitions, emphasizing flexibility in their balance sheet and capital structure to support strategic growth initiatives.Pine Cliff Energy Corporate Events
DividendsBusiness Operations and Strategy
Pine Cliff Energy Announces 2025 Capex Plan and Dividend Adjustment
Neutral
Apr 2, 2025
Pine Cliff Energy Ltd. has announced a 2025 capital spending program of approximately $23.5 million, with $12.5 million allocated to strategic drilling in Central Alberta and the remainder for facilities maintenance and asset retirement obligations. The company has shifted its capital allocation strategy, reducing its annual dividend from $0.06 to $0.015 per share, as it resumes drilling activities in response to improved economic conditions in the Canadian gas market.
DividendsBusiness Operations and StrategyFinancial Disclosures
Pine Cliff Energy Reports 2024 Results with Increased Reserves and Dividends
Neutral
Mar 6, 2025
Pine Cliff Energy Ltd. announced its 2024 annual results, highlighting an increase in year-end reserves and a dividend declaration. Despite a decrease in adjusted funds flow and a net loss for the year, the company saw a significant increase in production and proceeds from asset dispositions. The announcement reflects Pine Cliff’s strategic focus on optimizing its operations and maintaining shareholder value through dividends, despite the financial challenges faced in 2024.
DividendsFinancial Disclosures
Pine Cliff Energy Declares February 2025 Monthly Dividend and Announces Webcast
Neutral
Feb 5, 2025
Pine Cliff Energy Ltd. has announced a regular monthly dividend of $0.005 per common share, payable on February 28, 2025, to shareholders recorded by February 14, 2025. The dividends are classified as non-eligible for Canadian tax purposes, indicating potential tax implications for shareholders. The company will also hold a webcast on March 6, 2025, to discuss its 2024 year-end results, providing stakeholders with insights into its financial performance and future outlook.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.