‘We remain focused on the prize: our multi-billion dollar Goldboro LNG Project and earnings and return to shareholders we expect it to provide.’
As the world builds a better energy future, cleaner natural gas will play a large role in replacing higher carbon sources such as coal, decreasing global GHG emissions substantially. Pieridae has partnered with one of Germany’s largest energy companies to supply it with liquified natural gas for 20 years. And as the largest Foothills producer in North America, we will deliver conventional natural gas that we own to supply the LNG Facility. From the field to the flange, Pieridae offers investors a unique opportunity with a large upside.
Our CFO Rob Dargewitcz explains Pieridae’s business plan and focus for 2021 in what should be a transformational year for the company.
Pieridae 2020 Financial Highlights
The company released its 2020 financial and operating results on March 25, 2021, highlighted by the fact Pieridae maintained safe, reliable operations of its assets at a time of unparalleled upheaval in the energy industry due to the Coronavirus. A global oil price war, low commodity prices not seen in decades and unmatched uncertainty created a perfect storm, yet the company weathered it and saw strong year over year production growth.
- Production increased year over year from 22,397 barrels of oil equivalent per day ("boe/d") in 2019 to 42,000 boe/d in 2020, an increase of 88%
- The Company managed to replace almost half of its production in 2020 while spending minimal capital
- The proved developed producing ("PDP") base decline rate of the corporation is now at ~ 10% (based on 2021 PDP forecasts), one of the lowest in the industry
- This decline rate will provide a very reliable base production from which the Company will grow significantly in the next few years to supply the Goldboro LNG Facility in Nova Scotia
- Safe, reliable operations were maintained during the pandemic with historical low recordable injuries without any measurable loss of productivity during the fourth quarter and year ended December 31, 2020 due to COVID-19
- Net Operating Income ("NOI") more than doubled year over year from $25.0 million in 2019 to income of $50.7 million in 2020, an increase of 103%
- Adjusted Funds Flow From Operations1 ("AFFO") increased year over year from $0.6 million in 2019 to income of $26.9 million in 2020, an increase of 4,383%
- We have formally started our ESG journey, will deliver our inaugural ESG report this year and are committed to net zero emissions for our Goldboro LNG Project by 2050
 NOI and AFFO are non-GAAP measures. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Refer to the "Non-GAAP measures" section of the Company's MD&A.