#86: Phil Hodge (Pine Cliff Energy) - Why Natural Gas Prices are Rising, 45% Free Cash Flow Yields, Increasing Dividends, Zero Debt & What it Means for Energy Shareholders
Welcome back to the rose bros podcast!
This episode we are joined by Phil Hodge, President & CEO of Pine Cliff Energy.
Pine Cliff Energy is a public company actively engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids in Western Canada.
Pine Cliff currently produces ~21,000 boe per day, and trades on the Toronto Stock Exchange with a market cap of approximately $400 million.
As commodity prices continue to rise 2021/2022, Pine Cliff has enjoyed enormous gains including a 45% free cash flow yield, plans to eliminate all debt, and its first dividend scheduled to begin in May of 2022.
With a single digit decline rate on production (industry average is ~ 30%), Pine Cliff plans to continue its steady growth rate as the Canadian energy industry recovers.
We sat down for a smooth cup of rose bros coffee and discussed why natural gas prices are rising, capital allocation and how it affects shareholders, the realities of transitioning energy industry & how the invasion of Ukraine has affected global energy security.
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