Successful Refinancing & Strong Quarterly Cash Flow

CALGARY, ALBERTA – August 9, 2023 - Pieridae Energy Limited (“Pieridae” or the “Company”) (TSX: PEA) announces the release of its second quarter 2023 financial and operating results. Pieridae generated Net Operating Income (“NOI”)  of $44 million and successfully refinanced its long-term debt, substantially reducing the Company’s cost of capital. The Company’s management’s discussion and analysis (“MD&A”) and unaudited interim consolidated financial statements and notes for the quarter ended June 30, 2023 are available at and on SEDAR at


  • Refinanced the Company’s long-term debt resulting in new credit facilities of USD $150 million, materially reducing the cost of capital while providing additional liquidity through the provision of a revolving credit facility and a delayed draw term loan.
  • Generated Funds Flow from Operations[1] of $35.4 million ($0.22 per basic and fully diluted share) vs $43.5 million ($0.28 per basic and $0.27 per fully diluted share) in Q2 2022. 
  • Generated quarterly NOI[1] of $43.8 million ($0.28 per basic and $0.27 per fully diluted share) vs $56.0 million ($0.36 per basic and $0.35 per fully diluted share) in Q2 2022.
  • Generated Net Income of $4.2 million ($0.03 per basic and fully diluted share) vs $23.0 million ($0.15 per basic and $0.14 per fully diluted share) in Q2 2022.
  • Produced 31,087 boe/d (85% natural gas) vs 36,378 boe/d in Q2 2022.
  • Net debt[1] was $181.7 million at June 30, 2023 compared to $214.5 million at December 31, 2022.

“Pieridae had strong financial results this quarter, despite operational challenges and weaker AECO natural gas prices, thanks to a favorable royalty credit and realized gains from our hedging program,” said Pieridae’s President and Chief Operating Officer, Darcy Reding. “In the second quarter, we continued to execute our strategic plan with the successful refinancing of our long-term debt, which is a significant milestone for the Company and provides Pieridae with a lower cost of capital and greater financial flexibility.”

“Production has largely recovered from unscheduled downtime during the second quarter, with recent field production back to 35,600 boe/d. Wildfires in northeast BC continue to keep 900 boe/d shut-in in the Ekwan area, and approximately 750 boe/d remain voluntarily shut-in in west-central Alberta until AECO natural gas prices are sustained at greater than $3.00/Mcf. Our focus as we move into fall is the safe and efficient execution of Phase 1 of the Waterton maintenance turnaround in August and September, improving production and facility reliability, and ongoing operating and administrative cost reductions.”



  • Commodity prices continued to decline in Q2 2023 with AECO natural gas down 67% and WTI basis down 32% vs. Q2 2022. 
  • Lower commodity sales revenue was partially offset by the Company’s hedging program with Q2 2023 hedging gains of $13.6 million ($4.60/boe).
  • Pieridae benefitted from an adjustment to the 2022 Gas Cost Allowance (“GCA”) credit calculated annually by the Alberta Crown which more than offset year to date royalty expense, resulting in $16.6 million of net royalty recovery for the quarter.
  • Q2 production was impacted by unscheduled downtime and maintenance activities at the Caroline and Jumping Pound gas processing facilities (4,800 boe/d), as well as periodic non-operated production outages arising from wildfires in Alberta and British Columbia (1,550 boe/d). 
  • Q2 capital expenditures were $9.4 million with spending focused on the Brown Creek development program ($4.0 million) and facility maintenance and turnaround costs ($4.2 million).
  • The successful refinancing included a new CAD $20 million, 18-month bridge term loan and the issuance of 18.6 million warrants. The Company’s previous term loan was retired in advance of its October 16, 2023 maturity. 
  • The Company executed several new commodity hedge transactions as part of its risk management strategy to mitigate cash flow volatility in support of capital spending and debt service obligations, and in compliance with the requirements of the new credit facility. 


Pieridae previously announced the retirement of Chief Executive Officer Alfred Sorenson, effective August 31, 2023. The Board of Directors is currently engaged in a CEO succession process, the results of which will be disclosed when concluded.


Forward natural gas and natural gas liquids prices have continued to experience downward pressure since March 2023 through the typically lower-priced summer season. Pieridae’s robust hedge position will partially mitigate the lower expected prices through the second half of 2023, although not to the same extent as the first half of the year. 

Additionally, Pieridae’s year-to-date production was lower than expected, and while second-half production is anticipated to remain within the original guidance range, annual guidance has been revised downward from 37,000-39,000 boe/d to 33,000 - 34,500 boe/d to reflect the production challenges in the first half of the year. 
Lower forecast hedge-adjusted pricing and lower production have also put downward pressure on NOI, partially offset by diligent operating cost reduction efforts and the previously discussed GCA adjustment

to royalties. NOI guidance has been lowered slightly to reflect management’s current projections, from the previous range of $120 - $150 million to $110 - $130 million.

Following a detailed capital program review during the second quarter, management has decided to bifurcate the previously discussed Waterton maintenance turnaround into two separate phases in order to complete critical maintenance requirements, while prudently managing the pace of capital expenditures during a period of lower projected cash flow. The first phase will be initiated on August 12, 2023, requiring a production outage of four to five weeks and capital expenditures of approximately $11 million. Following the completion of Phase 1, detailed scoping and timing for the remaining required work will be finalized and included as Phase 2 in the 2024 maintenance capital budget. As a result of this partial turnaround and other ongoing capital maintenance activities, total 2023 sustaining capital expenditures are now projected to be in the range of $30 - $40 million, an increase from the previous guidance range of $15 - $20 million.

Pieridae's revised 2023 guidance is as follows:


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


Pieridae hedges to mitigate commodity price, interest rate and foreign exchange volatility to protect the cash flow required to fund the Company’s maintenance capital requirements and debt service obligations, while allowing the Company to participate in future commodity price upside. Pieridae continues to execute its risk management program governed by its hedge policy and in compliance with the thresholds required by the new senior loan facilities. During the second quarter of 2023, the Company entered several new hedge contracts in support of the loan refinancing transaction and, as of June 30, 2023, is hedged in accordance with the requirements of the senior loan agreement. 

The Company had the following fixed-price physical commodity sales contracts and power contracts in place at June 30, 2023: 

Q2 2023 Fixed Price Physical Commodity Sales Contracts and Power Contracts

The Company had the following financial risk management contracts in place as at June 30, 2023:

Q2 2023 Financial Risk Management Contracts


A conference call and webcast to discuss the results will be held on Thursday, August 10, 2023, at 8:30 a.m. MDT / 10:30 a.m. EDT. 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 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 please contact:

Darcy Reding, President & Chief Operating Officer                Adam Gray, Chief Financial Officer
Telephone: (403) 261‐5900                                                               Telephone: (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 (, and at Pieridae's website ( 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 (“boes”) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.



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.