President's Message to Shareholders

Reserves

Despite pausing drilling activity in 2024 and most of 2025 due to lower natural gas prices, our PDP reserves1 at the end of 2025 were up 2% year-over-year prior to accounting for production. Stronger well performance and lower operating costs helped offset the impact of lower commodity prices, particularly from oil and natural gas liquids.

Pine Cliff’s TPP reserves¹ were up 7% from the prior year, before production, reflecting additional reserve bookings and better performance assigned to our undrilled locations.

At the end of 2025, we have 22.0 net Glauconite locations booked. This is a 19.6% increase from 18.4 net locations at year-end 2024, expanding our high-quality inventory in our Central Alberta core area. We successfully completed the previously announced Q4 2025 disposition of land prospective for Basal Quartz in Central Alberta, consistent with our portfolio optimization.

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Disciplined Capital Spending

We redeployed the proceeds of the Q4 disposition to support the development of the 4-23 Glauconite well in our Central Alberta area. This well was drilled in December 2025, completed in January 2026 and was brought into production in the second half of February and continues to clean up. We also constructed natural gas pipeline infrastructure to service the 4-23 well and to enable the development of future Glauconite locations in the area.

Given the year-to-date correction in AECO gas pricing, and to preserve balance sheet strength and dividend sustainability, our Board has approved an initial 2026 capital budget of $15 million, which includes asset retirement, facility maintenance and the 4-23 well completion. We intend to resume our drilling program in the back half of 2026, although, as always, we will pace spending with the commodity strip and only advance projects that will meet our return thresholds.

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Dividend

Our priority is to maintain a sustainable dividend supported by free cash flow, prudent hedging and a strong balance sheet. At current commodity prices, we are leaving our monthly dividend at $0.00125 per share and will continue to monitor our total payout ratio closely.

As of December 31, 2025, Pine Cliff has paid $104.6 million, or approximately $0.29 per share in cumulative monthly dividends since the commencement of the dividend program in June 2022. We are proud of this sizable return of capital to our shareholders given the size of our company.

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Hedging and Diversification Update‍

Our hedging and internal marketing strategies continue to mitigate the impact of commodity price volatility. In 2025, Pine Cliff realized an average natural gas price of C$2.64/mcf, representing a 57% premium to the AECO Daily 5A price of C$1.68/mcf for the year. We have approximately 37% of our gross natural gas production² for 2026 priced at C$3.19/mcf. This includes close to 37% Q2 and Q3 2026 production priced at C$3.27/mcf. We also have 40% of our crude oil production3 for 2026 hedged at US$63.45/bbl. We will opportunistically expand our hedge positions when they align with our business strategy, capital program and dividend sustainability.

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Webcast

Pine Cliff will host a webcast at 9:00 AM MDT (11:00 PM EDT) on Thursday March 5th, 2026.

Participants can access the live webcast via Pine Cliff Energy Q4 and 2025 Webcast or through the link provided on our website at www.pinecliffenergy.com. A recorded archive of the webcast will also be made available on the website.

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Outlook

We are optimistic on the medium-term outlook for North American natural gas, and in particular, Western Canada gas. We expect structural demand growth from LNG export capacity in Canada and the United States, along with rising power demand tied to artificial intelligence and data processing infrastructure growth. While near-term weather variability and the pace of LNG export ramp-ups can influence storage levels and price volatility, we believe the macro drivers will support improved fundamentals over time.

Canada is expected to be exporting more that 10% of its natural gas production in the form of LNG by this summer and the US is expected to add an additional three Bcfd of LNG exports this year to take their total to approximately 22 Bcfd, or over 20% of all US natural gas production.

There are also approximately 35 GWs of new data center constuction underway in the US this year. Natural gas is the most scalable and near-term option to provide energy for these projects. We should start to see some of this incremental industrial demand appearing in late 2026 and in 2027.

In the interim, our approach is unchanged: protect the balance sheet, sustain a dividend, hedge prudently and pursue attractive, repeatable drilling opportunities in our core areas. This is our 15th year operating through Western Canada natural gas cycles and experience tells us that disciplined capital allocation through volatility creates long term shareholder value.

Thank you for your continued support.

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Yours truly,

Phil Hodge

President and Chief Executive Officer

March 4, 2026

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¹ Disclosure Note: Please refer to Pine Cliff’s Website for Reader Advisories regarding forward looking information, non-GAAP measures, oil and gas measurements, definitions as this Presidents message is subject to the same cautionary statements as set out therein.

² Based on Q4 2025 sales volumes of 97,025 Mcf/d natural gas.

³ Based on Q4 2025 sales volumes of 1,236 Bbl/d of light and medium oil.

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