Pine Cliff Energy (TSX: PNE, OTCQX: PIFYF): 

📌 Shares Outstanding: 358.1M

📌 Market Cap: $229.44M

📌 Net Debt: $58.3MM

📌 Enterprise Value: $287.74M

📌 Current Production: 21,283 boepd

📌 2P NPV 10% 548.1M

📌 Tax Pools: $352M

📌 Insider Ownership: 17% FD, Institutional Ownership Over 10%

📌 Dividend Yield: 2.2% (recently cut by $75M)

Highlights:

✅ PNE has a low decline asset base of <10% with 79% levered to natural gas. Every $0.10 change in AECO equals $3.3M in cash flow.

✅ The Company is well positioned to benefit from rising natural gas demand, driven by LNG exports and power needs from AI data farms. AECO forward prices for 2026 and 2027 gas are in contango at ~$3.00/Mcf, which supports this thesis.

✅ We believe the basis differential to NYMEX will narrow in the coming future, as growing demand will outpace supply in the US, requiring more supply from Canada. In addition to increasing LNG demand in Canada.

✅ PNE has been very astute with their market diversification strategies allowing them to realize a natural gas price of $2.48Mcf (54% of their production hedged at this price for the 2H) vs. a summer price of $1.68/Mcf. They recently locked in 32% of 2026 production at $3.00/Mcf.

✅ PNE recently announced a behind-the-fence Data Centre in Central Alberta. PNE will provide 3.2-4.5MMCf/d with pricing tied to NYMEX.

✅ In addition to gas exposure, the company provides oil exposure in the Sundre and Drumheller area. Plans to spud their first Glauconite well this fall. Capex will be $23M on a base of $30M of cashflow - approximately 28% of cashflow. The company also provides a $0.00125/month dividend.

✅ With multiple catalysts on the horizon, positive tailwinds for natural gas and potential for exponential free cash flow, it is a great time to revisit this name.