Pieridae Announces 2025 Guidance & Capital Program

Press Release

CALGARY, ALBERTA – December 5, 2024 – Pieridae Energy Limited (“Pieridae” or the “Company”) (TSX: PEA) is pleased to provide 2025 guidance including scope of the 2025 capital program along with production and Net Operating Income [1] (“NOI”) projections.

Pieridae’s specific priorities for 2025 are:

• Sustain a safe and regulatory compliant business
• Minimize facility outages to maximize sales and processing revenue.
• Further grow the third-party gathering and processing business at our operated facilities.
• Meaningfully reduce operating expenses to improve corporate netback.
• Deliver attractive ROI on value adding optimization projects included in the 2025 capital program.
• Reduce long term debt to improve financial flexibility.

The 2025 production guidance of 23,000 to 25,000 boe/d assumes that approximately 9,400 boe/d of previously announced voluntary production shut-ins in Central AB, Northern AB, and Northeast BC persist throughout 2025. These dry gas, low margin properties produce to third-party facilities and were shut-in during the second and third quarters of 2024 due to low AECO natural gas prices and high processing costs. These shut-ins represent approximately 25% of the Company’s production capability.

Material production upside is possible if these properties are reactivated; management’s decision to reactivate production from any of these areas is subject to supportive long-term economics. The shut-in production can be restored within one to two weeks and subsequent well and reservoir performance is not expected to be negatively impacted.

Pieridae has hedged 110,000 GJ/d of its 2025 natural gas production at a weighted average fixed price of $3.32/GJ, and 1,679 bbl/d of its 2025 condensate production with a weighted average floor price of CAD$84.41/bbl and a weighted average ceiling price of CAD$92.32/bbl. The Company’s aggregate hedge position for 2025 totals 19,055 boe/d or approximately 80% of the above production guidance range. The unrealized gain on the Company’s hedge portfolio, which extends to mid-2028, is approximately $87 million using the forward strip as of November 30, 2024.

Pieridae’s legacy fixed price sulphur contract, which was entered into in 2019,  expires on December 31, 2025. Under this contract, the Company receives a net fixed price of approximately $6/tonne for the majority of its sulphur production of approximately 1,400 tonnes per day. Beginning January 1, 2026, the Company will receive market price for all sulphur production, less normal deductions for transportation, handling, and marketing representing a significant potential revenue opportunity. As of November 30, 2024, the spot west coast sulphur price is approximately US$143/tonne, prior to transportation and marketing costs.

The $25-$30 million capital budget in 2025 includes approximately $14 million directed towards a high-impact well and facility optimization program funded with the equity raised during Q3 and Q4 2024. These high return, short payout capital projects are expected to increase sales revenue, improve facility efficiency, reduce operating cost and fuel gas consumption, and lower GHG compliance costs. Spending on this program commenced in Q4 2024 and will continue throughout 2025.

The remainder of the 2025 capital is focused on routine capital maintenance, field operating technology upgrades, and site closure / decommissioning expenditures in Alberta and BC. Notably, Pieridae has not scheduled a major maintenance turnaround planned at any of the Company’s deep-cut, sour gas processing facilities during 2025 given the successful completion of gas plant turnarounds and other maintenance projects in 2023 and 2024.  The next major maintenance turnaround is scheduled for 2026.

Due to the current outlook for North American natural gas prices, Pieridae is not planning to resume drilling operations during 2025. Pieridae will only exploit its portfolio of high impact conventional Foothills drilling opportunities once natural gas prices sustainably recover and the Company has achieved its deleveraging target.

ABOUT PIERIDAE

Pieridae is a Canadian energy company headquartered in Calgary, Alberta. The Company is a significant upstream producer and midstream custom processor of natural gas, NGLs, condensate, and sulphur from the Canadian Foothills and adjacent areas in Alberta and in 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:

Darcy Reding, President & Chief Executive Officer
Telephone: (403) 261‐5900

Adam Gray, Chief Financial Officer
Telephone: (403) 261‐5900

Investor Relations
investors@pieridaeenergy.com

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