TSX: PNE | OTCQX: PIFYF
Pine Cliff Energy CEO Phil Hodge joins Andy Millette to discuss the ACO gas setup, LNG Canada ramp, and how Pine Cliff’s low-decline base positions it for powerful free cash flow “torque” in 2025–2026. Phil covers hedging, dividend reset, insider buying, clean share structure, drilling inventory, and gas demand from data centers. #Millettian
What we discuss with Phil Hodge:
- Why the ACO forward curve is the steepest contango he’s seen.
- How Pine Cliff paused drilling for ~18 months and is now set to restart.
- Dividend reset in March 2025 — rationale and future flexibility.
- Balance sheet: ~C$43M term debt, extended to 2028, low amortization.
- Low-decline portfolio (-10%) built via acquisitions, creating torque to gas prices.
- ~18–19 high-return drilling locations with ~1-year paybacks.
- LNG Canada’s ~2 Bcf/d ramp vs Canada’s ~18–19 Bcf/d production.
- Shareholder alignment: ~358M shares outstanding, no warrants or converts; insiders and AIMCo are major holders.
Verified socials:
- Pine Cliff Energy — Website: pinecliffenergy.com
- CEO Phil Hodge — Pine Cliff corporate page
- Host — Andy Millette (LinkedIn): https://www.linkedin.com/in/andymillette/
- Co-host — Steve Yang (LinkedIn): https://www.linkedin.com/in/steveyangstocks/
- Steve Yang on X: https://x.com/SteveYangStocks
Chapters
00:00 Intro & disclosure
00:55 Phil Hodge introduces Pine Cliff Energy
03:02 ACO curve & 2026 setup
05:12 Free cash flow torque explained by Hodge
06:56 Why Pine Cliff paused drilling
10:23 Inventory near top operators; modeled paybacks
12:16 Dividend reset decision & path forward
15:03 Q4/Q1 drill restart plan
18:05 LNG Canada’s impact on Canadian gas
19:17 Pine Cliff’s share structure & insider ownership
21:28 Debt maturity & liquidity explained by Hodge
28:34 Hedges roll off in 2026
Disclaimer (end of description)
Nothing in this video is investment advice. Always do your own due diligence. The host holds a personal position. #Millettian
