Pine Cliff Energy (PNE) AI Stock Analysis

• Market Cap: $226.04M
• Dividend Yield: 6.55%
• Average Volume (3M): 161.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -5.86%
• EPS Growth: -467.27%
• Country: CA
• Employees: 103
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.02
• Shares Outstanding: 358,791,560
• 10 Day Avg. Volume: 130,112
• 30 Day Avg. Volume: 161,980
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 6.86
• 1Y Price Target: $0.94
• Price Target Upside: 54.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: ―

Pine Cliff Energy's overall score reflects financial and operational challenges, including declining profitability and increased leverage. Despite these issues, positive cash flows and strategic growth plans provide some upside potential. Technical indicators suggest the stock is currently oversold, and while valuation metrics are mixed, the high dividend yield could be appealing. The earnings call highlights cautious optimism, but market uncertainties remain significant.

Pine Cliff Energy Business Overview & Revenue Model

Company Description

Pine Cliff Energy Ltd. (PNE) is a Canadian natural resource company primarily engaged in the exploration, development, and production of natural gas, oil, and natural gas liquids. The company operates within the energy sector with a focus on acquiring and managing high-quality, long-life natural gas assets concentrated in Alberta and Saskatchewan. Pine Cliff Energy is committed to creating value through sustainable and efficient resource management while maintaining strong environmental and safety standards.

How the Company Makes Money

Pine Cliff Energy makes money through the production and sale of natural gas, oil, and natural gas liquids. The company's revenue model is primarily based on the extraction and sale of these resources from its operated and non-operated properties. Key revenue streams include the sale of produced natural gas, which constitutes a significant portion of its income, followed by revenues from oil and natural gas liquids. Pine Cliff Energy's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiencies. The company may also engage in strategic acquisitions or divestitures to optimize its portfolio and enhance cash flow. While Pine Cliff Energy may have partnerships or joint ventures to facilitate operations, specific details on such collaborations are not provided.

Pine Cliff Energy Financial Statement Overview

Summary

Pine Cliff Energy is facing financial challenges with declining revenues and profitability, as well as increased leverage and reduced equity positions. However, their positive operating and free cash flows provide some stability, indicating the company's capability to generate cash to support operations.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	190.73M	195.63M	176.26M	309.99M	167.72M	107.32M
Gross Profit	93.34M	126.53M	16.11M	230.15M	109.71M	55.64M
EBITDA	40.44M	35.24M	54.12M	175.29M	82.18M	5.27M
Net Income	-19.32M	-21.45M	9.12M	108.94M	81.42M	-55.39M
Balance Sheet
Total Assets	373.49M	381.25M	477.07M	375.05M	379.00M	288.90M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	208.00K	54.60M	6.87M	7.88M
Total Debt	47.36M	48.47M	62.14M	3.30M	45.57M	63.94M
Total Liabilities	326.43M	326.93M	377.14M	241.32M	333.58M	326.22M
Stockholders Equity	47.06M	54.32M	99.93M	133.73M	45.42M	-37.32M
Cash Flow
Free Cash Flow	22.30M	21.27M	-63.66M	121.44M	28.02M	1.31M
Operating Cash Flow	25.83M	23.80M	66.63M	150.45M	49.48M	8.79M
Investing Cash Flow	6.81M	6.77M	-133.20M	-36.74M	-30.77M	-10.02M
Financing Cash Flow	-32.65M	-30.56M	12.15M	-66.16M	-19.71M	445.00K

Pine Cliff Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.61 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.66, and below the 200-day MA of 0.73, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.28 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 is Positive, 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
HME	79 Outperform	C$183.67M	5.89	42.32%	9.74%	6.65%	9.78%
ALV	74 Outperform	C$214.04M	7.01	25.88%	9.01%	1.58%	71.76%
Sector *	65 Neutral	$14.76B	7.27	2.76%	5.59%	4.70%	-62.00%
PRQ	61 Neutral	C$188.91M	21.67	2.78%	8.05%	-16.34%	-67.99%
IPO	61 Neutral	C$310.51M	33.43	-1.09%	13.92%	16.69%	-108.64%
PNE	49 Neutral	$226.04M	―	-38.21%	6.55%	-5.86%	-467.27%
SEI	36 Underperform	C$230.90M	―	-46.55%	―	―	-156.86%

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.