Pine Cliff Energy Ltd. ("Pine Cliff" or the "Company") (TSX:PNE) is pleased to announce the filing of its first quarter financial and operating results. Included in the filings were Pine Cliff's unaudited condensed consolidated interim financial statements and related management's discussion and analysis for the three months ended March 31, 2017 (the "Q1-Report"). Selected highlights are shown below and should be read in conjunction with the Q1-Report.
First Quarter 2017 Highlights
Significant highlights from the first quarter of 2017 were as follows:
Pine Cliff continues to strive to reduce operating costs while selectively choosing drilling and optimization well locations to maintain production. At the same time, Pine Cliff continues to evaluate the many acquisition opportunities that have arisen due to the volatility of the energy markets. Most importantly, Pine Cliff continues to generate positive cash flow. This quarter the Company generated $11.2 million in funds flow from operations, while only spending $3.8 million in capital expenditures, with realized natural gas prices of $2.83 per Mcf.
Pine Cliff's focus from inception has been to seek low operating cost assets that provide a good rate of return on capital for its shareholders. This motivation led the Company to a contrarian strategy of consolidating natural gas assets. Pine Cliff continues to believe that those assets, with the appropriate amount of attention and capital, will form the basis of a strong sustainable business that will generate cash flow for years to come and during all phases of a cyclical industry. Pine Cliff's business model was "stress tested" and validated in 2016 as the Company navigated through the lowest natural gas prices seen in Western Canada in 18 years, while keeping production relatively flat and without issuing stock. Through all of that, Pine Cliff still brought in more funds flow from operations than it spent on capital expenditures last year.
Even though Pine Cliff is now seeing the benefits of its model, the Company is still building its business. However, growth without consideration for the economic returns of that growth is not a sustainable business model. Pine Cliff makes capital allocation decisions based on what its team believes will best serve shareholders over the long-term and will continue to consider market conditions in determining where cash flow from operations is best spent. Those options include paying down debt, acquisitions, organic growth, paying a dividend and share repurchases.
About Pine Cliff
Pine Cliff is an Alberta based natural gas company that is focused on acquiring and developing long life assets that are cash flow positive even in a low commodity price environment. Further information relating to Pine Cliff, including the Q1-Report, may be found on www.sedar.com as well as on Pine Cliff's website at www.pinecliffenergy.com. To request a printed copy, free of charge, please send an email to firstname.lastname@example.org.
SOURCE: Pine Cliff Energy Ltd.
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