Pine Cliff Energy (PNE) 15th Annual Midwest IDEAS Investor Conference summary

Strategic overview and recent performance

• Production increased to approximately 22,350 barrels per day following a CAD 106 million acquisition in December 2023.

• High insider and institutional ownership, with AIMCo holding over 10% and strong management alignment.

• Maintains the lowest production decline rate among Canadian public companies, enabling flexibility in capital allocation.

• No equity issued since 2019; disciplined acquisition strategy with 15 deals in 13 years.

• Debt to cash flow expected to drop from 1.5x to 0.5x in 2025 as cash flow rises and debt is repaid.

Market conditions and outlook

• Natural gas prices are at cyclical lows but forward strips for 2025 show significant improvement.

• Storage concerns in North America are easing due to higher-than-expected summer demand.

• LNG export capacity in North America is set to double in the next three years, with Canada and Mexico joining the market.

• Global LNG demand, especially from Asia, is expected to drive long-term growth.

• Data center and industrial demand projected to add 7–9 BCF/day to North American gas consumption.

Capital allocation and hedging

• 2024 CapEx budget set at $17.5 million, with drilling deferred unless prices improve.

• Over 50% of summer 2024 production hedged; 2025 hedging to be increased as market conditions clarify.

• Low CapEx as a percentage of cash flow, resembling a royalty company model.

• Dividend yield maintained at 6%, with adjustments made in response to market conditions.

• Focus remains on maintaining a strong balance sheet and opportunistic acquisitions.