Pine Cliff Energy Ltd.

The call did not include a formal press-release-style financial summary in the remarks, but management said Q2 realized gas price was $2.38/Mcf, which was a 47% premium to AECO 5A of $1.62. They also said that more than 50% of quarterly revenue came from liquids, helped by stronger WTI prices. On the operating side, the 4-23 Glauconite well averaged 1,100 BOE/d from March through June, was about 50% gas and 50% liquids, and represented roughly 5% of corporate production. For hedging, Pine Cliff said it is about 41% hedged for the balance of 2026 at $3.16 and has an average hedge of about 36% of production in Q4 through Q1 at around $3.10.

Phil Hodge framed the quarter as one where gas pricing improved but remained below what the company wants, and he focused heavily on market drivers rather than accounting results. He was notably constructive on LNG Canada ramp-up, saying the recent return of system draws is a positive sign for AECO and Western Canadian gas prices. He also made the case that Pine Cliff has a large, low-risk inventory of Glauconite and Pekisko locations and wants to accelerate drilling prudently over time.

Kristopher Zack said Pine Cliff continues to actively manage its hedge book to reduce price volatility and support cash flow. He highlighted the Q2 realized gas price of $2.38/Mcf, the 47% premium to AECO 5A, and said the company is about 41% hedged for the balance of 2026 at $3.16. He also pointed to hedge coverage of about 36% of production in Q4 through Q1 at around $3.10, calling that a strong start to winter.

A major topic was the recently announced capital spending increase, which management said was driven by the Glauconite inventory acquired in December 2023 and improving cash flow conditions. Management said it wants to drill 2 to 4 wells a year, potentially more if pricing strengthens, but reiterated it will fund growth within cash flow and avoid issuing equity at current stock prices. Analysts also asked about carbon tax, and management said Pine Cliff is classified as a small emitter and does not expect an impact under current regulations.