Pine Cliff Energy

PNE-T

Analysis and Opinions about PNE-T

Signal
Opinion
Expert
SELL
SELL
March 15, 2018

In tough shape. They made the wrong bet on natural gas. Sell it and buy elsewhere. But it will pay off over five years.

In tough shape. They made the wrong bet on natural gas. Sell it and buy elsewhere. But it will pay off over five years.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$0.265
Owned
Unknown
COMMENT
COMMENT
March 8, 2018

It is about as leveraged to depressed energy and gas outlook as you could be. They run unhedged. It is the worst position to be in when the prices are weak. They have relatively low margin. People like that it is unhedged and gives direct exposure to ACO pricing.

It is about as leveraged to depressed energy and gas outlook as you could be. They run unhedged. It is the worst position to be in when the prices are weak. They have relatively low margin. People like that it is unhedged and gives direct exposure to ACO pricing.

Dennis da Silva
Managing Director & Sr Portfolio Manager, Middlefield Capital Ltd.
Price
$0.280
Owned
Unknown
COMMENT
COMMENT
December 6, 2016

(Market Call Minute.) Complete unhedged exposure to gas. Very low decline rate. Competent management and he thinks very highly of them. Cash flow positive down to $1.75 of MCF. If you are constructive on gas, it may be interesting.

Pine Cliff Energy (PNE-T)
December 6, 2016

(Market Call Minute.) Complete unhedged exposure to gas. Very low decline rate. Competent management and he thinks very highly of them. Cash flow positive down to $1.75 of MCF. If you are constructive on gas, it may be interesting.

Mason Granger
Portfolio Manager, Sentry Investments
Price
$1.040
Owned
No
COMMENT
COMMENT
October 21, 2016

What makes this different is that it is the gas version of Bonterra (BNE-T). An unhedged company. Their track record has been built upon acquisitions. In a way with assets others don’t want. The issue is very low declines. The margin quality is not what you would like. Balance sheet is a little stretched because of a weakness in prices. (This was a very lengthy explanation which I could not follow. You might want to check BNN’s tape to hear it word for word. - Bill.)

Pine Cliff Energy (PNE-T)
October 21, 2016

What makes this different is that it is the gas version of Bonterra (BNE-T). An unhedged company. Their track record has been built upon acquisitions. In a way with assets others don’t want. The issue is very low declines. The margin quality is not what you would like. Balance sheet is a little stretched because of a weakness in prices. (This was a very lengthy explanation which I could not follow. You might want to check BNN’s tape to hear it word for word. - Bill.)

Dennis da Silva
Managing Director & Sr Portfolio Manager, Middlefield Capital Ltd.
Price
$1.090
Owned
Unknown
DON'T BUY
DON'T BUY
April 7, 2016

It is hard to sell a stock that has fallen as much as this. They bought a lot of gas assets and drove down costs. They are one of the lowest cost producers. They are still losing money, however.

It is hard to sell a stock that has fallen as much as this. They bought a lot of gas assets and drove down costs. They are one of the lowest cost producers. They are still losing money, however.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$0.770
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
October 7, 2015

(Top Pick Oct 3/14, Down 31.74%) They have done a great job. Their business plan is to take advantage of low gas prices, which they still are.

(Top Pick Oct 3/14, Down 31.74%) They have done a great job. Their business plan is to take advantage of low gas prices, which they still are.

Bill Bonner
President & Portfolio Manager, Brickburn Asset Management Inc
Price
$1.150
Owned
Yes
PAST TOP PICK
PAST TOP PICK
August 19, 2015

(A Top Pick Aug 27/14. Down 50.75%.) Believe it or not, this is the best environment for this company. If you look at what they did with Bonterra (BNE-T) where they were buying oil assets when no one wanted oil. Now it is buying dry natural gas assets when no one wants natural gas. They are probably going to end up getting some really good deals. For a longer-term thesis, this is a great managed company and they have a great idea in being contrarian in their space.

(A Top Pick Aug 27/14. Down 50.75%.) Believe it or not, this is the best environment for this company. If you look at what they did with Bonterra (BNE-T) where they were buying oil assets when no one wanted oil. Now it is buying dry natural gas assets when no one wants natural gas. They are probably going to end up getting some really good deals. For a longer-term thesis, this is a great managed company and they have a great idea in being contrarian in their space.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$0.990
Owned
Yes
COMMENT
COMMENT
May 20, 2015

At some point in time it might become a take over candidate. Very well-run. Thinks they will continue to do what they did with Bonterra (BNE-T) in oil, building and buying production in natural gas when it was out of favour. If you are a long-term player, you want the natural gas price to stay low, allowing them to make all kinds of acquisitions. When the natural gas price goes up, that may be when we get a couple of LNG projects or a pipeline, and at that point in time you will really start to see the value in the company. In the meantime they have a low decline rate and are generating a nice cash flow.

At some point in time it might become a take over candidate. Very well-run. Thinks they will continue to do what they did with Bonterra (BNE-T) in oil, building and buying production in natural gas when it was out of favour. If you are a long-term player, you want the natural gas price to stay low, allowing them to make all kinds of acquisitions. When the natural gas price goes up, that may be when we get a couple of LNG projects or a pipeline, and at that point in time you will really start to see the value in the company. In the meantime they have a low decline rate and are generating a nice cash flow.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$1.540
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
April 8, 2015

(A Top Pick March 13/14. Up 11.63%.) This is a low cost, i.e. it drills wells that are not $3-$10 million, but are like $400,000. Dull and boring gas assets that no one really wants. However, this management team knows that there is a lot of value in them and it doesn’t cost much to run this company. Good management.

(A Top Pick March 13/14. Up 11.63%.) This is a low cost, i.e. it drills wells that are not $3-$10 million, but are like $400,000. Dull and boring gas assets that no one really wants. However, this management team knows that there is a lot of value in them and it doesn’t cost much to run this company. Good management.

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$1.410
Owned
Yes
COMMENT
COMMENT
January 7, 2015

Loves this one. They made their mark through the acquisition strategy that they have executed very well. They like to buy gas assets when gas looks like it is horrible. He can see possibly 40% production growth in 2015, which is spectacular in the context of this market. Low gas prices are going to create more acquisition opportunity for them. They have lots of strength in their balance sheet to execute. Their break even production costs are in the $2.25-$2.50 range.

Loves this one. They made their mark through the acquisition strategy that they have executed very well. They like to buy gas assets when gas looks like it is horrible. He can see possibly 40% production growth in 2015, which is spectacular in the context of this market. Low gas prices are going to create more acquisition opportunity for them. They have lots of strength in their balance sheet to execute. Their break even production costs are in the $2.25-$2.50 range.

Bill Bonner
President & Portfolio Manager, Brickburn Asset Management Inc
Price
$1.540
Owned
Yes
WATCH
WATCH
December 11, 2014

They buy the assets that are completely out of favour. They buy dry gas. Decent balance sheet and it is on his watch list.

Pine Cliff Energy (PNE-T)
December 11, 2014

They buy the assets that are completely out of favour. They buy dry gas. Decent balance sheet and it is on his watch list.

Teal Linde
Portfolio Manager & Publisher, Linde Equity Report, Linde Equity Report
Price
$1.540
Owned
No
DON'T BUY
DON'T BUY
December 1, 2014

A very well run Nat Gas company that goes after dry natural gas. He is not bullish on Nat Gas so would not own it. He doesn’t see much downside.

Pine Cliff Energy (PNE-T)
December 1, 2014

A very well run Nat Gas company that goes after dry natural gas. He is not bullish on Nat Gas so would not own it. He doesn’t see much downside.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$1.730
Owned
Unknown
COMMENT
COMMENT
November 19, 2014

Great company. Thinks they have the balance sheet to do significant acquisitions going forward. Have been very disciplined at what they do. These are the same people that started Bonterra (BNE-T), which has probably had one of the best long-term returns of any stock on the TSX. He thinks this company is doing the same thing. Low production costs and they are buying assets with low decline rates and they don't have much debt. With commodity prices being very cheap here, they probably can step in and buy some natural gas assets, which have more of an oil bent to them, and get them at discount prices. Thinks it goes significantly higher.

Pine Cliff Energy (PNE-T)
November 19, 2014

Great company. Thinks they have the balance sheet to do significant acquisitions going forward. Have been very disciplined at what they do. These are the same people that started Bonterra (BNE-T), which has probably had one of the best long-term returns of any stock on the TSX. He thinks this company is doing the same thing. Low production costs and they are buying assets with low decline rates and they don't have much debt. With commodity prices being very cheap here, they probably can step in and buy some natural gas assets, which have more of an oil bent to them, and get them at discount prices. Thinks it goes significantly higher.

Bruce Campbell (2)
President & Portfolio Manager, Stone Castle Investment Management Inc.
Price
$1.830
Owned
Yes
COMMENT
COMMENT
November 6, 2014

Executing a kind of interesting business strategy that he doesn't know of anybody else doing. This is very dry gas focused. You have to believe in gas prices if you are going to own this one. They buy assets that nobody else is chasing. If he got more constructive on gas, this is one he would bring into the portfolio.

Pine Cliff Energy (PNE-T)
November 6, 2014

Executing a kind of interesting business strategy that he doesn't know of anybody else doing. This is very dry gas focused. You have to believe in gas prices if you are going to own this one. They buy assets that nobody else is chasing. If he got more constructive on gas, this is one he would bring into the portfolio.

Mason Granger
Portfolio Manager, Sentry Investments
Price
$1.660
Owned
No
HOLD
HOLD
October 23, 2014

They executed the plan flawlessly. The declining gas price challenges them. Thinks it is pretty neat. Prefers TOU because it is a bigger company. If you are patient with PNE-X in a low gas market it seems they have a strategy for taking advantage of the low gas price.

Pine Cliff Energy (PNE-T)
October 23, 2014

They executed the plan flawlessly. The declining gas price challenges them. Thinks it is pretty neat. Prefers TOU because it is a bigger company. If you are patient with PNE-X in a low gas market it seems they have a strategy for taking advantage of the low gas price.

Bill Harris, CFA
Portfolio Manager, Avenue Investment Management
Price
$1.650
Owned
Unknown
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