SP Angel Morning Energiser: 08/05/24

Junior M&A in focus

SP Angel Morning Energiser: 06/03/24

Majors farm-in to frontier exploration

Stifel FirstEnergy Morning Research Package

Birchcliff Energy (BIR-TSX); BUY, C$4.60 ― Reports unaudited Q4 results & 2019 reserves | Bonterra Energy (BNE-TSX); HOLD, C$4.75― Rolling out 2020 guidance and 2019 year-end reserves | Mullen Group (MTL-TSX); HOLD, C$8.50― An OFS company no more | Pine Cliff Energy (PNE-TSX); HOLD, C$0.15― 2020 guidance and 2019 year-end reserves | Precision Drilling (PD-TSX); BUY, C$3.75― FCF yields of 31% in 2020e and 2021e | TC Energy (TRP-TSX); BUY, C$79.00― In-line quarter, but a bit more growth capital

3Q19 results were challenging but in line, 2x Pekisko oil wells on the docket for 4Q19e

 Pine Cliff reported 3Q19 results headlined by volumes of 19,033 boe/d, slightly below GMPFE’s forecast of 19,762 boe/d, as voluntary price related shut-ins took hold.  2019e production guidance was modestly revised to within the range of 19,000-19,250 boe/d, from 19,250-19,750 boe/d previously.  3Q19 AFFO was reported to be -$3.9 mm (-$0.01/sh), which was better than our call of -$5.2 mm (-$0.02/sh), in a quarter where average AECO 5A gas prices was a mere $0.90/mcf.  Capital spending

1Q19 results slightly behind, yet highest FFO since 2Q17

Pine Cliff reported 1Q19 results which included production of 18,741 boe/d that was inline, and FFO of $6.8 mm, or $0.02/sh, that modestly trailed expectations.

Announces 4Q18 results, light oil well success

The headline grabber from this release was its successful Pekisko oil well that came online in January at a restricted IP30 rate of 410 boe/d (including 238 bbl/d 30° API oil), which virtually doubles corporate oil production. Management has identified 19 further oil locations within the Pekisko/Basal Quartz oil trends of its Central Alberta core region.

Reports 3Q18 in line, revised 2018e guidance includes drilling oil well in 4Q18

Pine Cliff reported 3Q18 results that were largely in line, as production and FFOPS of 19,603 boe/d and $0.01/sh, respectively, tracked consensus expectations.

No surprises from 2017YE results

4Q17 production of 21,489 boe/d (95% gas) had been pre-released in mid-February with its reserve report. This results in 2017 annual production of 21,408 boe/d. Cash flow in the quarter of $3.8mm ($0.01/shr) was also in line with our estimate of $4.2mm ($0.01/shr). This resulted in annual cash flow of $28.7mm ($0.09/shr) compared to our estimate of $29.1mm ($0.09/shr). Capex during the quarter was $3.1mm, which was below 4Q17 cash flow during a challenging quarter for natural gas prices. For t

2017YE reserves and 2018 guidance

With no major acquisitions this year, Pine Cliff’s reserves fell 5% on a PDP basis to 50mmboe, 5% on a 1P basis to 51.1mmboe and 5% on a 2P basis to 67.2mmboe. PDP makes up 98% of 1P reserves and 74% of 2P reserves. Based on 4Q17 production of 21,489 boe/d, this represents a 1P RLI of 6.5 years and a 2P RLI of 8.6 years. Reported BT NPV10 of $171.6 mm ($3.44/boe) for PDP, $176.9mm ($3.46/boe) for 1P and $240.1mm ($3.57/boe) for 2P. On a 2P basis, this is down $106.8mm or 31% YoY largely due to w

Resolves Liquidity Concerns, Announces 2Q16 Results

Pine Cliff announced a private placement with Alberta Investment Management Corporation (AIMCo) that brought in $30 mm of proceeds that will be used to term out a portion of the Company’s outstanding debt, thus eliminating any near-term liquidity concerns that were associated with the stock. Concurrently the Company announced its credit facility has been reduced to $85 mm, with the Company having eliminated its Syndicate exposure by $100 mm since the beginning of the year. Second quarter results

ANNOUNCES 2Q16 RESULTS, CONCLUSION OF BANK LINE REVIEW, CLOSING OF A PRIVATE PLACEMENT

Impact - slightly positive as while second quarter results were modestly behind expectations, resolution of the borrowing base redetermination and private placement to term out a portion of the Company's outstanding debt should remove any liquidity concerns and provide the near term financial flexibility to continue to focus on the operational side of the business while managing through the current period of low commodity prices

ANNOUNCES ISSUANCE OF INSIDER SUBORDINATED DEBT, SALE OF NON-CORE ASSETS, AND EXTENSION OF BORROWING BASE REDETERMINATION

Impact - slightly positive as the debt issuance terms out a portion of the Company's outstanding debt and coupled with the asset sale will increase near-term financial flexibility as the Company continues to work through its bank line redetermination

2Q16e Quarterly Preview

Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly rev

Pine Cliff Energy Sells Royalty Assets, Shores up Balance Sheet in Midst of Credit Facility Review

Pine Cliff announced the sale of its royalty assets as well as the sale of its investments in public companies, bringing in combined proceeds of ~$30 mm, which will be used to pay down debt thus increasing the Company’s financial flexibility as work on the Company’s borrowing base redetermination continues.

ANNOUNCES $25 MM DISPOSITION OF ROYALTY ASSETS

Impact: Positive. Proceeds from these transactions will help provide financial flexibility as work on the Company's borrowing base re-determination continues.

Sylvania Platinum - Healthy production recovery

Sylvania delivered a 12% increase in Q125 production compared to Q424 and, with an average platinum group metals (PGM) basket price only slightly down, delivered a 10% increase in revenue. The company is guiding for FY25 production of 73,000–76,000oz. Costs were well controlled with South African rand (ZAR) direct operating costs 3% higher and US dollar costs up 6.5%. Attractive unit cost efficiencies of 5% to 8% were delivered. With results largely in line with our expectations, our forecasts r

SP Angel Morning View: Copper breaches $10,000/t as traders ramp up bullish positions in hopes of China resurgence

Condor Gold* (CNR LN) – Beneficiary of a robust gold price

Hybridan Small Cap Feast - 31 October 2024

** Potential means Intention to Float (ITF) has been announced, or it is a rumour ***Arranged by type of listing and date of announcement ****Alphabetically arranged Share prices and market capitalisations taken from the current price on the day of publication Dish of the day Admissions: None Delistings: Quantum Exponential Group (AQSE: QBIT) has delisted from AQSE What’s baking in the oven? ITF announced:*** Potential** Initial Public Offerings: 17th October 2024: Selkirk Group, a newly incorpo

TENNYSON Morning news – Diversified Energy – Locking in CF via LNG contract & incr. hedges