#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. 

Also, this episode is also available on YouTube, so if you enjoyed the conversation, subscribe to the rose bros channel – it will go a long way to helping the show.