Pine Cliff Energy (PNE) Q2 2026 earnings summary

Executive summary

• Natural gas prices improved year-over-year but remain below desired levels, with optimism for further recovery as LNG Canada ramps up capacity.

• Liquids contributed over 50% of revenue in the last quarter, driven by strong performance from the Glauconite 4-23 well.

• Adjusted funds flow for Q2 2026 was $5.9 million ($0.02/share), up from $4.9 million ($0.01/share) in Q2 2025; six-month adjusted funds flow was $15.5 million, down from $16.4 million year-over-year.

• Production averaged 19,747 Boe/d in Q2 2026, a decrease from 21,236 Boe/d in Q2 2025.

• Net debt decreased 14% year-over-year to $50.8 million as of June 30, 2026.

Financial highlights

• Realized gas price in Q2 was CAD 2.38/MCF, a 47% premium to AECO 5A price of CAD 1.62, due to effective hedging and diversification.

• Commodity sales were $42.7 million in Q2 2026, up from $41.9 million in Q2 2025.

• Operating netback was $4.92/Boe in Q2 2026, down from $5.01/Boe in Q2 2025.

• The 4-23 Glauconite well averaged 1,100 BOE/day from March to June, representing 5% of corporate production and exceeding engineering expectations.

• Dividends paid in Q2 2026 totaled $1.3 million ($0.004/share), unchanged from Q2 2025.

Outlook and guidance

• 2026 capital expenditure budget increased to $27.0 million from $15.2 million to fund an additional Glauconite well and other projects.

• Optimism for higher natural gas prices as LNG Canada and data center demand increase over the next few years.

• Plans to drill another Glauconite well this fall and maintain a pace of two to four wells per year, with potential acceleration if commodity prices improve.

• Expectation that data center and LNG demand will significantly impact natural gas markets by 2028-2029.

• 59 gross (37 net) Glauconite locations identified, with 29 gross (22 net) booked in TPP reserves as of December 31, 2025.