PNE's forward dividend yield is high at 9.42% while trailing payout ratio is about 50%. EPS has been quite stagnant in recent quarters which does not help the safety of the dividend but cash from operations at $15.2M and a cash balance at $50.8M show that PNE is liquid enough. But, as always, it is a cyclical industry and no dividend should be considered guaranteed. PNE recently completed an acquistion of Certus so we do not think a takeover is on the horizon yet. Total proved plus probable reserves at November 2023 is 67,648.4 mboe with over ~85% being natural gas related. But reserves are fairly low based on 20,000 boe/d production. PNE essentially has no debt, but is still sensitive to gas prices. But gas has declined sharply and it remains highly cash flow positive. Senior management and directors own 4.1% of the company.
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