Pieridae Releases Q1 2023 Results


Strong Quarterly Cash Flow Supported by $31MM Hedge Gain

CALGARY, Alberta, May 10, 2023 (GLOBE NEWSWIRE) -- Pieridae Energy Limited (“Pieridae” or the “Company”) (TSX: PEA) announces the release of its first quarter 2023 financial and operating results. Pieridae generated Net Operating Income (“NOI”)1 of $50 million and made term debt principal repayments totalling $28 million during the first quarter of 2023. Pieridae’s management’s discussion and analysis (“MD&A”) and unaudited interim consolidated financial statements and notes for the quarter ended March 31, 2023 are available at www.pieridaeenergy.com and on SEDAR at www.sedar.com.


  • Generated record quarterly NOI1 of $50.0 million ($0.31 per basic and fully diluted share) up 6% from $47.3 million ($0.30 per basic and fully diluted share) in Q1 2022.
  • Generated Funds Flow from Operations1 of $41.6 million ($0.26 per basic and fully diluted share), up 19% from $34.9 million ($0.22 per basic and fully diluted share) in Q1 2022.
  • Generated Net Income of $13.6 million ($0.09 per basic and $0.08 per fully diluted share), compared to $10.7 million ($0.07 per basic and fully diluted share) in Q1 2022.
  • Produced 36,467 boe/d (85% natural gas), down 10% from 40,491 boe/d in Q1 2022, due primarily to the previously discussed re-injection of ethane volumes into the natural gas sales stream, natural declines and an unplanned outage at the Caroline gas plant in Central Alberta which was back on-stream in late January.
  • Repaid $27.9 million of the senior secured term loan (including the net impact of interest paid in kind “PIK”), reducing the amount due at maturity to $189.2 million2 at March 31, 2023.
  • Successfully drilled the Company’s first Foothills well (02/6-35-44-18W5, “6-35”) targeting the Ostracod formation in the Brown Creek area of Central Alberta, resulting in a commercially productive new pool discovery and proving up a new Foothills play type with significant follow-up drilling potential.
  • Commenced drilling a second Foothills well (02/6-29-44-17W5, “6-29”) targeting the Mountain Park formation in Brown Creek.

Subsequent to Quarter End

  • Equipped, tied-in and put on production our first foothills well (6-35) in April 2023 which is currently producing approximately 6 MMcf/d sales gas at a flowing wellhead pressure of 16 MPa.  The well is highly restricted as production capability exceeds the Company’s working interest capacity at the gathering system tie-in point.
  • Finished drilling 6-29 in April 2023 and released the drilling rig. The Company has elected to defer further development activity at this time.

“Pieridae had strong financial results this quarter, despite weaker commodity prices, thanks to gains from our hedging program,” said Pieridae’s Chief Executive Officer, Alfred Sorensen. “We have also successfully concluded our winter drilling program with production from the development program expected in the second quarter. Our focus as we move into summer is to prudently manage expenditures and working capital during a period of expected lower commodity prices while maintaining safe and reliable operations, and to complete our term debt refinancing.”


 2023 2022 2021 
($ 000s unless otherwise noted)Q1Q4Q3Q2Q1Q4Q3Q2
Natural gas (mcf/d)186,156 179,143 181,030 178,918 187,719 198,596 191,439 194,232 
Condensate (bbl/d)2,657 2,469 2,911 2,864 3,201 2,851 2,555 2,950 
NGLs (bbl/d)2,784 2,389 2,876 3,695 6,003 5,354 4,133 3,083 
Sulphur (tonne/d)1,487 1,348 1,312 1,555 1,625 1,185 1,518 1,710 
Total production (boe/d) (1)36,467 34,715 35,959 36,378 40,491 41,304 38,595 38,404 
Realized natural gas price before physical commodity contracts ($/mcf)3.24 5.08 4.38 7.13 4.66 4.62 3.58 3.10 
Realized natural gas price after physical commodity contracts ($/mcf)5.08 5.24 3.62 4.67 4.08 3.67 2.70 2.59 
Benchmark natural gas price ($/mcf)3.25 5.20 4.28 7.22 4.75 4.69 3.59 3.11 
Realized condensate price before physical commodity contracts ($/bbl)107.22 110.24 103.71 132.60 112.09 91.69 85.25 76.72 
Realized condensate price after physical commodity contracts ($/bbl)107.36 117.67 105.82 116.61 106.13 69.71 65.33 68.08 
Benchmark condensate price ($/bbl)107.05 115.24 115.66 132.49 122.62 100.10 70.25 64.82 
Net income (loss)13,639 114,662 (1,573)22,982 10,549 4,661 (14,846)(10,058)
Net income (loss) $ per share, basic0.09 0.72 (0.01)0.15 0.07 0.03 (0.09)(0.06)
Net income (loss) $ per share, diluted0.08 0.70 (0.01)0.14 0.07 0.03 (0.09)(0.06)
Net operating income (2)49,995 67,711 30,014 55,969 47,295 30,845 17,920 14,444 
Cashflow provided by operating activities41,309 40,134 9,899 34,922 3,212 21,139 6,885 12,093 
Funds flow from operations (2)41,613 57,641 17,721 43,462 34,855 12,408 6,780 (6,366)
Total assets587,641 615,477 473,642 499,580 552,781 622,540 560,782 575,690 
Adjusted working capital deficit (3)(22,275)(11,249)(46,419)(28,892)(34,934)(61,588)(71,161)(65,977)
Net debt (1)(202,180)(214,503)(254,489)(248,967)(273,201)(293,169)(314,184)(298,360)
Capital expenditures20,486 19,037 7,216 9,739 3,534 1,493 9,852 17,959 
Development expenses (Goldboro LNG project)- (4,514)- - - 225 783 (4,862)

(1) Total production excludes sulphur.
(2) Refer to the “Net Operation Income”, “Capital Resources” and “non-GAAP measures” sections of this MD&A for reference to non-GAAP measures.
(3) Adjusted working capital is a non-GAAP measure and is calculated as accounts payable and accrued liabilities, less cash and cash equivalents, restricted cash, accounts receivable, prepaids and deposits.

Pieridae’s priority remains improving financial flexibility by strengthening our balance sheet while sustaining production, implementing cost control initiatives, optimizing infrastructure logistics and executing non-core asset dispositions in order to maintain profitability during the commodity cycle.

A conference call and webcast to discuss the results will be held on Thursday, May 11, 2023, at 1:30 p.m. MDT / 3:30 p.m. EDT, following the formal business conducted at the Annual General Meeting. To participate in the webcast or conference call, you are asked to register using one of the links provided below.

To register to participate via webcast please follow this link:

Alternatively, to register to participate by telephone please follow this link:


Pieridae is a Canadian energy company headquartered in Calgary, Alberta. Through a number of corporate and asset acquisitions, we have grown into a significant upstream and midstream producer with assets concentrated in the Canadian Foothills, producing conventional natural gas, NGLs, condensate and sulphur. Pieridae provides the energy to fuel people’s daily lives while supporting the environment and the transition to a lower-carbon economy. Pieridae’s common shares trade on the TSX under the symbol “PEA”.

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

Alfred Sorensen, Chief Executive OfficerAdam Gray, Chief Financial Officer
Telephone: (403) 261-5900Telephone: (403) 261-5900

Investor Relations

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.


Natural GasOil
mcfthousand cubic feetbbl/dbarrels per day
mcf/dthousand cubic feet per dayboe/dbarrels of oil equivalent per day
mmcf/dmillion cubic feet per dayWCSWestern Canadian Select
AECOAlberta benchmark price for natural gasWTIWest Texas Intermediate

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.

1 Refer to the “non-GAAP measures” section of the Company’s MD&A.
2 Includes the $50 million non interest-bearing deferred fee due at maturity, A portion of this fee, closing fees and other amounts remain to be accreted to the term debt value.