TSX:PNE

Stock Analysis Report

Pine Cliff Energy

Executive Summary

Pine Cliff Energy Ltd. engages in the acquisition, exploration, development, and production of natural gas, crude oil, and natural gas liquids in the Western Canadian Sedimentary Basin.


Snowflake Analysis

Concerning outlook with worrying balance sheet.

Share Price & News

How has Pine Cliff Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PNE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.0%

PNE

-7.4%

CA Oil and Gas

-4.8%

CA Market


1 Year Return

-56.0%

PNE

-7.6%

CA Oil and Gas

0.1%

CA Market

Return vs Industry: PNE underperformed the Canadian Oil and Gas industry which returned -6.1% over the past year.

Return vs Market: PNE underperformed the Canadian Market which returned 0.5% over the past year.


Shareholder returns

PNEIndustryMarket
7 Day-12.0%-7.4%-4.8%
30 Day-18.5%-6.0%-3.2%
90 Day-24.1%-2.4%-1.0%
1 Year-56.0%-56.0%-3.5%-7.6%3.3%0.1%
3 Year-84.9%-84.9%-11.1%-20.5%12.9%2.7%
5 Year-92.7%-92.7%-13.3%-27.1%29.2%10.3%

Price Volatility Vs. Market

How volatile is Pine Cliff Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pine Cliff Energy undervalued compared to its fair value and its price relative to the market?

1.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PNE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate PNE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PNE is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: PNE is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PNE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PNE is overvalued based on its PB Ratio (2.1x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Pine Cliff Energy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PNE's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if PNE's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PNE's revenue (12.1% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: PNE's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PNE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pine Cliff Energy performed over the past 5 years?

-34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNE is currently unprofitable.

Growing Profit Margin: PNE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PNE is unprofitable, and losses have increased over the past 5 years at a rate of -34.3% per year.

Accelerating Growth: Unable to compare PNE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PNE is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (4.3%).


Return on Equity

High ROE: PNE has a negative Return on Equity (-424.16%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pine Cliff Energy's financial position?


Financial Position Analysis

Short Term Liabilities: PNE's short term assets (CA$23.0M) do not cover its short term liabilities (CA$71.6M).

Long Term Liabilities: PNE's short term assets (CA$23.0M) do not cover its long term liabilities (CA$291.0M).


Debt to Equity History and Analysis

Debt Level: PNE's debt to equity ratio (333.5%) is considered high.

Reducing Debt: PNE's debt to equity ratio has increased from 1.9% to 333.5% over the past 5 years.


Balance Sheet

Inventory Level: PNE has a high level of physical assets or inventory.

Debt Coverage by Assets: PNE's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PNE has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: PNE has less than a year of cash runway if free cash flow continues to reduce at historical rates of -27% each year


Next Steps

Dividend

What is Pine Cliff Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.8%industryaverage5.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PNE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PNE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PNE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PNE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PNE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Phil Hodge (53yo)

8.1yrs

Tenure

CA$467,974

Compensation

Mr. Philip Blake Hodge, also known as Phil, B.Comm., LLB, has been the Chief Executive Officer and President of Pine Cliff Energy Ltd., a subsidiary of Geomark Exploration Ltd. since January 2, 2012. Mr. H ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD352.17K) is above average for companies of similar size in the Canadian market ($USD155.12K).

Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Philip Hodge
President8.1yrsCA$467.97k2.03% CA$733.0k
Alan MacDonald
CFO & Corporate Secretary0.2yrsCA$220.87kno data
Terry McNeill
Chief Operating Officer5.1yrsCA$339.05k0.037% CA$13.2k

5.1yrs

Average Tenure

Experienced Management: PNE's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip Hodge
President8.1yrsCA$467.97k2.03% CA$733.0k
George Fink
Chairman of the Board8.1yrsCA$92.23k6.91% CA$2.5m
Gary Drummond
Independent Director16.1yrsCA$82.94k0.13% CA$45.8k
Randy Jarock
Independent Director7.8yrsCA$82.94k0.89% CA$321.6k
William Rice
Independent Director3.8yrsCA$82.94k0.084% CA$30.3k

8.1yrs

Average Tenure

68yo

Average Age

Experienced Board: PNE's board of directors are considered experienced (8.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PNE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

Pine Cliff Energy Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pine Cliff Energy Ltd.
  • Ticker: PNE
  • Exchange: TSX
  • Founded: 2004
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$36.056m
  • Shares outstanding: 327.78m
  • Website: https://www.pinecliffenergy.com

Location

  • Pine Cliff Energy Ltd.
  • 1015-4th Street SW
  • Suite 850
  • Calgary
  • Alberta
  • T2R 1J4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNETSX (The Toronto Stock Exchange)YesCommon SharesCACADApr 2005
PIFY.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2005
IPCDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2005

Biography

Pine Cliff Energy Ltd. engages in the acquisition, exploration, development, and production of natural gas, crude oil, and natural gas liquids in the Western Canadian Sedimentary Basin. The company primarily holds interests in natural gas assets in the Southern and Edson areas; and oil and natural gas assets in the Viking Kinsella and Ghost Pine area of Central Alberta. It also holds interests in natural gas liquids assets in the Sundance, Carstairs, Garrington, and Harmattan areas of Alberta; and natural gas assets in the Cadillac area of Southern Saskatchewan. As of December 31, 2018, its proved reserves were 48,276.1 thousand barrels of oil equivalent (MBOE) and proved plus probable reserves were 61,579.2 MBOE. The company also explores for gold, nickel, and copper deposits, as well as platinum group elements with assets located in Utah, Ontario, Northwest Territories, and Nunavut. Pine Cliff Energy Ltd. was incorporated in 2004 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:30
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.