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Highlights

  • During Q2 FY233, Pine Cliff Energy drilled one gross (0.7 net) NTU Pekisko oil well.
  • The average total production of the firm stands at nearly 20,750 Boe/d for July.
  • Pine Cliff paid a monthly dividend of CAD 0.01083 per common share in August this year.

Pine Cliff Energy Ltd (TSX: PNE) is a Canada-based company involved in acquiring, exploring, developing, and producing natural gas and oil in the Western Canadian Sedimentary Basin.

During the second quarter, Pine Cliff Energy drilled one gross (0.7 net) NTU Pekisko oil well. It drilled two gross (1.4 net) NTU Pekisko oil wells during Q1 FY23. All three have been tied-in and placed on production in Q2 FY23. In July, the company posted a production of about 1,150 Boe/d from these three gross wells. The average total production of the firm stands at nearly 20,750 Boe/d for July.

Pine Cliff paid a monthly dividend of CAD 0.01083 per common share in August this year. The stock offered a healthy dividend yield of 9.35%, as on September 12, 2023.

The company secured an increased cash balance at the end of Q2 FY23 and posted industry beating debt to equity ratio.

For Q2 FY23, the company’s net revenue dropped to CAD 39.6 million versus CAD 82.7 million in the previous corresponding period. This was due to the drop in realized commodity prices and lower commodity sales.

Also, total expenses were higher for the second quarter because of increased operating expenses.

Declined revenue and increased operating expenses further decreased earnings before taxes to CAD 0.4 million, as compared to CAD 48.6 million in Q2 FY22.

Overall, the firm suffered a net loss of CAD 0.8 million versus net income of CAD 50.0 million in pcp.

Top 10 Shareholders

A total of 32% of the company’s shares are held by its top ten shareholders. While Alberta Investment Management Corporation owns a maximum stake in the company at approximately ­­­10.14%, Disbrow (Robert) holds over 9% shares of the firm.

Stock Price Performance
The company’s stock has decreased by around 3.47% over the last one week. It has dropped by approximately 2.11% in the last one month. The stock’s 52-week high and low price stand at CAD 1.88 and CAD 1.18, respectively

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 12, 2023. The reference data in this report has been partly sourced from EODHD/Others.