Pine Cliff Energy (PNE) AI Stock Analysis

• Market Cap: $207.74M
• Dividend Yield: 10.49%
• Average Volume (3M): 222.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 2.24%
• EPS Growth: -332.95%
• Country: CA
• Employees: 103
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.06
• Shares Outstanding: 358,174,200
• 10 Day Avg. Volume: 419,878
• 30 Day Avg. Volume: 222,687
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.39
• Price to Cash Flow (P/CF): 131.30
• P/FCF Ratio: 7.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.93
• Price Target Upside: 60.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Pine Cliff Energy's stock score of 50 reflects financial challenges and bearish technical indicators. While there is some stability from positive cash flows, the high leverage and declining profitability pose risks. The earnings call provides a mixed outlook with cautious optimism about growth opportunities and strategic positioning.

Pine Cliff Energy Business Overview & Revenue Model

Company Description

Pine Cliff Energy Ltd. (PNE) is a Canadian-based energy company primarily engaged in the acquisition, exploration, development, and production of natural gas and crude oil. The company focuses on operations within Western Canada, particularly targeting natural gas fields in Alberta and Saskatchewan. Pine Cliff Energy aims to maximize shareholder value through strategic asset management and efficient production practices.

How the Company Makes Money

Pine Cliff Energy makes money primarily through the production and sale of natural gas and crude oil. The company's revenue model is based on extracting these hydrocarbons from its assets in Western Canada and selling them to various markets, including domestic and international buyers. Key revenue streams include the sale of natural gas, which constitutes the majority of its production portfolio, and the sale of crude oil and natural gas liquids. Revenue is influenced by market prices for these commodities, which can fluctuate based on supply and demand dynamics, geopolitical factors, and economic conditions. Pine Cliff Energy also engages in strategic partnerships and joint ventures to enhance its operational capabilities and expand its asset base, contributing to its earnings.

Pine Cliff Energy Financial Statement Overview

Summary

Pine Cliff Energy is experiencing financial challenges, reflected in declining revenues and profitability. Increased leverage and reduced equity position pose potential risks. However, positive operating and free cash flows offer some stability, indicating the company's ability to generate cash to manage operations in the short term. Strategic improvements are necessary to enhance profitability and financial health.

Income Statement

Pine Cliff Energy has shown fluctuating revenue with a recent decline from 2022 to 2023. The gross profit margin for 2023 was approximately 7.5%, a significant drop from previous years. Net income turned negative in 2024, leading to a negative net profit margin, indicating challenges in profitability. There is also a lack of EBIT and a decrease in EBITDA margin, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased in recent years, with a ratio of approximately 0.89 in 2024, indicating higher leverage. Stockholders' equity has decreased significantly, affecting the equity ratio, which stood at about 14.2% in 2024. The return on equity (ROE) was negative in 2024 due to negative net income, pointing to inefficiencies in using equity for profit generation.

Cash Flow

Despite challenges in net income, Pine Cliff Energy generated positive operating cash flow in 2024. The free cash flow was also positive and improved significantly from the previous year, indicating better cash management. The free cash flow to net income ratio is positive due to the positive free cash flow, showcasing operational cash generation capability despite net losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
195.63M	176.26M	309.99M	167.72M	107.32M
	Gross Profit
126.53M	16.11M	230.15M	109.71M	55.64M
	EBIT
0.00	5.76M	118.07M	21.66M	-36.41M
	EBITDA
35.24M	54.12M	175.29M	82.18M	5.27M
	Net Income Common Stockholders
-21.45M	9.12M	108.94M	81.42M	-55.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	208.00K	54.60M	6.87M	7.88M
	Total Assets
381.25M	477.07M	375.05M	379.00M	288.90M
	Total Debt
48.47M	62.14M	3.30M	45.57M	63.94M
	Net Debt
48.47M	53.70M	-51.13M	38.70M	56.06M
	Total Liabilities
326.93M	377.14M	241.32M	333.58M	326.22M
	Stockholders Equity
54.32M	99.93M	133.73M	45.42M	-37.32M
Cash Flow		Free Cash Flow
21.27M	-63.67M	121.44M	28.02M	1.31M
	Operating Cash Flow
23.80M	66.63M	150.45M	49.48M	8.79M
	Investing Cash Flow
6.77M	-133.20M	-36.74M	-30.77M	-10.02M
	Financing Cash Flow
-30.56M	12.15M	-66.16M	-19.71M	445.00K

Pine Cliff Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PNE, the sentiment is Negative. The current price of 0.58 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.77, and below the 200-day MA of 0.86, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 26.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PNE.

Pine Cliff Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEY	73 Outperform	C$3.23B	11.32	10.37%	8.25%	-9.52%	-11.68%
ARX	71 Outperform	$14.84B	13.40	14.67%	2.97%	-9.83%	-27.76%
KEL	66 Neutral	$1.04B	23.09	4.42%	―	-5.20%	-47.85%
BIR	62 Neutral	$1.49B	26.33	2.51%	6.12%	-26.02%	464.95%
Sector *	57 Neutral	$7.44B	4.21	-3.75%	6.64%	-0.07%	-64.77%
PNE	50 Neutral	$207.74M	―	-27.57%	10.49%	2.24%	-332.95%

Pine Cliff Energy Corporate Events

Pine Cliff Energy Announces 2025 Capex Plan and Dividend Adjustment

Pine Cliff Energy Ltd. has announced a 2025 capital spending program of approximately $23.5 million, with $12.5 million allocated to strategic drilling in Central Alberta and the remainder for facilities maintenance and asset retirement obligations. The company has shifted its capital allocation strategy, reducing its annual dividend from $0.06 to $0.015 per share, as it resumes drilling activities in response to improved economic conditions in the Canadian gas market.

Pine Cliff Energy Reports 2024 Results with Increased Reserves and Dividends

Pine Cliff Energy Ltd. announced its 2024 annual results, highlighting an increase in year-end reserves and a dividend declaration. Despite a decrease in adjusted funds flow and a net loss for the year, the company saw a significant increase in production and proceeds from asset dispositions. The announcement reflects Pine Cliff’s strategic focus on optimizing its operations and maintaining shareholder value through dividends, despite the financial challenges faced in 2024.

Pine Cliff Energy Declares February 2025 Monthly Dividend and Announces Webcast

Pine Cliff Energy Ltd. has announced a regular monthly dividend of $0.005 per common share, payable on February 28, 2025, to shareholders recorded by February 14, 2025. The dividends are classified as non-eligible for Canadian tax purposes, indicating potential tax implications for shareholders. The company will also hold a webcast on March 6, 2025, to discuss its 2024 year-end results, providing stakeholders with insights into its financial performance and future outlook.

Pine Cliff Energy Secures 25-Year Natural Gas Supply Deal for Alberta Data Centre

Pine Cliff Energy Ltd. has entered into a 25-year natural gas supply agreement with a private company to support a new data centre in Central Alberta, which will be constructed and operated by the private company. The data centre will not connect to the Alberta electrical grid and will rely on Pine Cliff’s natural gas supply, priced based on a 12-month average of the NYMEX price. This agreement reflects Pine Cliff’s strategic positioning in the energy market and its role in supporting infrastructure developments in Alberta, with potential implications for its operational stability and market presence.