Pieridae Announces 2024 Guidance

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CALGARY, Alberta, Dec. 07, 2023 (GLOBE NEWSWIRE) -- Pieridae Energy Limited (“Pieridae” or the “Company”) (TSX: PEA) is pleased to provide 2024 guidance including scope of the 2024 capital program along with production and net operating income projections.

^{(1) Refer to the “non-GAAP measures” section of the Company’s latest MD&A
(2) Assumes average 2024 AECO price of $2.25/GJ and average 2024 WTI price of USD$70/bbl
(3) Accounts for impact of hedging contracts in place as at December 7, 2023}

Pieridae’s specific priorities for 2024 are:

• Maximize processing facility reliability to meet production targets;
• Reduce operating and G&A expenses to improve corporate netback; and
• Reduce long term debt to further de-risk the balance sheet.
  

Pieridae has hedged approximately 65% of its expected 2024 natural gas production at approximately $3.50/Mcf, and approximately 59% of its expected 2024 condensate production using swaps and an $80.00 x $90.75 CAD WTI collar. The unrealized gain on the Company’s hedge portfolio is approximately $62 million, using the forward strip as of December 6, 2023.

Pieridae’s 2024 production guidance of 33,000 to 34,500 boe/d reflects the Company’s low 8% base decline rate mitigated by low-cost optimization initiatives and an expectation of less facility downtime than was experienced in 2023. The Company’s current onstream production capability and 2023 exit rate is approximately 37,500 boe/d.

Pieridae’s $28-$33 million 2024 capital budget is highlighted by the second and final phase of the maintenance turnaround at the Company’s Waterton deep-cut, sour gas processing facility, which is scheduled for the third quarter. Pieridae owns and operates three major gas processing facilities which each require periodic maintenance turnarounds on a five-to-six-year cycle. The Company successfully completed phase 1 of the Waterton turnaround from August to October of 2023.

Due to the current outlook for North American natural gas prices, Pieridae is not currently planning to resume drilling operations during 2024. The Company is instead directing its available capital towards certain low-risk, short-payout production and facility optimization projects to mitigate production decline. Pieridae plans to continue to exploit its portfolio of high impact conventional Foothills drilling opportunities once the Company has achieved its deleveraging target, natural gas prices recover, and risked project economics improve.

ABOUT PIERIDAE

Pieridae is a Canadian energy company headquartered in Calgary, Alberta. The Company is a significant upstream producer of conventional natural gas, NGLs, condensate and sulphur from the Canadian Foothills of Alberta and northeast British Columbia. Pieridae’s vision is to provide responsible, affordable natural gas and derived products to meet society’s energy security needs. Pieridae’s common shares trade on the TSX under the symbol “PEA”.

For further information, visit www.pieridaeenergy.com, or please contact:

Forward-Looking Statements
Certain statements contained herein may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws (collectively "forward-looking statements"). Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", "continue", "shall", "estimate", "expect", "propose", "might", "project", "predict", "forecast" and similar expressions may be used to identify these forward-looking statements.

Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of resources estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits or synergies from acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources and the risk factors outlined under "Risk Factors" and elsewhere herein. The recovery and resources estimate of Pieridae's reserves provided herein are estimates only and there is no guarantee that the estimated resources will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

Forward-looking statements are based on a number of factors and assumptions which have been used to develop such forward-looking statements, but which may prove to be incorrect. Although Pieridae believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because Pieridae can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Pieridae operates; the timely receipt of any required regulatory approvals; the ability of Pieridae to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of the operator of the projects which Pieridae has an interest in, to operate the field in a safe, efficient and effective manner; the ability of Pieridae to obtain financing on acceptable terms; the ability to replace and expand oil and natural gas resources through acquisition, development and exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of Pieridae to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Pieridae operates; timing and amount of capital expenditures, future sources of funding, production levels, weather conditions, success of exploration and development activities, access to gathering, processing and pipeline systems, advancing technologies, and the ability of Pieridae to successfully market its oil and natural gas products.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Pieridae's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Pieridae's website (www.pieridaeenergy.com). Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and Pieridae assumes no obligation to update or review them to reflect new events or circumstances except as required by Applicable Securities Laws.

Forward-looking statements contained herein concerning the oil and gas industry and Pieridae's general expectations concerning this industry are based on estimates prepared by management using data from publicly available industry sources as well as from reserve reports, market research and industry analysis and on assumptions based on data and knowledge of this industry which Pieridae believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While Pieridae is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors.

Additional Reader Advisories
Barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Abbreviations

Neither TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.