Pine Cliff Energy (PNE) Q4 2025 earnings summary

Executive summary

• Drilled a new Glauconite well after a multi-year pause, with early results encouraging but too soon for long-term conclusions.

• Adjusted funds flow for 2025 was $29.9 million ($0.08/share), down from $38.0 million ($0.11/share) in 2024; Q4 2025 was $7.8 million ($0.02/share), down from $8.6 million in Q4 2024.

• Net income for Q4 2025 was $3.8 million, but a net loss of $12.1 million was recorded for the full year, compared to a $21.4 million loss in 2024.

• Infrastructure investments for the new well were on budget and set up for future drilling in the area.

• Maintained a steady dividend program, distributing over CAD 100 million since 2022, with $9.4 million paid in 2025 ($0.026/share), down from $25.6 million ($0.072/share) in 2024.

Financial highlights

• Q4 performance was strong, aided by rising AECO prices.

• Commodity sales for 2025 were $172.2 million, down from $190.1 million in 2024.

• Operating netback for 2025 was $6.10/Boe, compared to $6.67/Boe in 2024.

• Capital expenditures for 2025 were $14.8 million, up from $2.5 million in 2024.

• Each $1 increase in WTI oil price adds approximately $1.4 million to annual cash flow.

Outlook and guidance

• 2026 capital expenditure budget set at $15.2 million, including $6.5 million for abandonment, reclamation, and facility maintenance.

• Plans to resume drilling in Central Alberta Glauconite wells in Q3 or Q4, contingent on market conditions.

• One Glauconite well completed in early 2026; further drilling opportunities under evaluation for H2 2026.

• 37% of 2026 natural gas production hedged at $3.19/Mcf; 31% of crude oil hedged at US$63.45/Bbl.

• Regular monthly dividend of $0.00125/share declared for March 2026.