CALGARY, Alberta, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Birchcliff Energy Ltd. ("Birchcliff” or the "Corporation”) (TSX: BIR) is pleased to announce its Q3 2024 financial and operational results and its preliminary guidance for 2025. Birchcliff is also pleased to announce that its board of directors (the "Board”) has declared a quarterly cash dividend of $0.10 per common share for the quarter ending December 31, 2024.

"Birchcliff's third quarter results highlight the continuing success of our operational execution and performance in 2024. Due to the strong performance of the wells brought on production this year, we were able to achieve solid quarterly average production of 75,403 boe/d in Q3 2024. Our strategic decision earlier in the year to defer the drilling of 11 wells and bring them on production in Q4 puts us in a strong position to benefit from the anticipated strengthening of natural gas prices for the remainder of 2024 and in 2025,” stated Chris Carlsen, President and Chief Executive Officer of Birchcliff.

"Our strategy for 2025 builds off of the operational momentum we have built in 2024, maintaining our strong focus on capital efficiency improvements and driving down costs. Birchcliff's 2025 F&D capital expenditures will be strategically deployed throughout the year, with a program designed to remain flexible in response to commodity price volatility. Based on our preliminary budgeting process and current commodity price outlook, we are targeting annual F&D capital expenditures of $260 million to $300 million and annual average production of 76,000 to 79,000 boe/d in 2025. We remain focused on prioritizing our strong balance sheet and financial position, while balancing the continued profitable development of our world-class Montney asset base and shareholder returns. We are continuing to evolve our plans for 2025 and expect to announce the details of our formal 2025 capital budget on January 22, 2025.”

Q3 2024 FINANCIAL AND OPERATIONAL HIGHLIGHTS

  • Achieved average production of 75,403 boe/d (83% natural gas, 9% NGLs, 5% condensate and 3% light oil).
  • Generated adjusted funds flow(1) of $45.2 million, or $0.17 per basic common share(2), and cash flow from operating activities of $65.9 million.
  • Reported a net loss to common shareholders of $10.5 million, or $0.04 per basic common share.
  • Birchcliff's market diversification initiatives contributed to an average realized natural gas sales price of $1.50/Mcf(3), which represented an 87% premium to the average benchmark AECO 7A Monthly Index price in Q3 2024.
  • Drilled 12 (12.0 net) wells, with F&D capital expenditures of $63.6 million.
  • Total debt(4) at September 30, 2024 was $513.6 million.
  • Birchcliff entered into a long-term contract operating agreement (the "COA”) with AltaGas Ltd. ("AltaGas”), which became effective July 1, 2024. Pursuant to the COA, Birchcliff assumed operatorship of AltaGas' Gordondale deep-cut gas processing facility (the "Gordondale Facility”). This arrangement will allow Birchcliff to leverage cost optimization opportunities, which are expected to drive lower operating costs, reduce downtime and optimize NGLs recoveries for Birchcliff.

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Birchcliff's unaudited interim condensed financial statements for the three and nine months ended September 30, 2024 and related management's discussion and analysis will be available on its website at www.birchcliffenergy.com and on SEDAR+ at www.sedarplus.ca.

(1) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures”.

(2) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures”.

(3) Excludes the effects of financial instruments but includes the effects of any physical delivery contracts.

(4) Capital management measure. See "Non-GAAP and Other Financial Measures”.

DECLARATION OF Q4 2024 QUARTERLY DIVIDEND

  • The Board has declared a quarterly cash dividend of $0.10 per common share for the quarter ending December 31, 2024.
  • The dividend will be payable on December 31, 2024 to shareholders of record at the close of business on December 13, 2024. The dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada).
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. For further information regarding the forward-looking statements and forward-looking information contained herein, see "Advisories - Forward-Looking Statements”. With respect to the disclosure of Birchcliff's production contained in this press release, see "Advisories - Production”. In addition, this press release uses various "non-GAAP financial measures”, "non-GAAP ratios” and "capital management measures” as such terms are defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112”). Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and might not be comparable to similar financial measures disclosed by other issuers. For further information regarding the non-GAAP and other financial measures used in this press release, see "Non-GAAP and Other Financial Measures”.

Q3 2024 UNAUDITED FINANCIAL AND OPERATIONAL SUMMARY

 Three months ended

September 30,

 Nine months ended

September 30,

 
 2024 2023 2024 2023 
OPERATING    
Average production    
Light oil (bbls/d)2,129 1,728 2,025 1,916 
Condensate (bbls/d)4,161 4,850 4,464 5,221 
NGLs (bbls/d)6,541 7,412 6,856 5,852 
Natural gas (Mcf/d)375,428 360,924 378,237 374,544 
Total (boe/d)75,403 74,143 76,384 75,413 
Average realized sales prices (CDN$)(1)    
Light oil (per bbl)98.47 100.46 100.14 98.77 
Condensate (per bbl)95.66 107.67 100.92 103.75 
NGLs (per bbl)25.02 26.35 26.44 26.91 
Natural gas (per Mcf)1.50 2.86 1.97 3.07 
Total (per boe)17.71 25.96 20.69 27.05 
     
NETBACK AND COST ($/boe)    
Petroleum and natural gas revenue(1)17.71 25.97 20.69 27.06 
Royalty expense(1.34)(2.04)(1.46)(2.47)
Operating expense(2)(2.78)(3.93)(3.35)(3.84)
Transportation and other expense(3)(5.24)(6.37)(5.23)(5.74)
Operating netback(3)8.35 13.63 10.65 15.01 
G&A expense, net(1.25)(1.36)(1.26)(1.43)
Interest expense(1.43)(0.86)(1.28)(0.66)
Lease interest expense(2)(0.32)- (0.11)- 
Realized gain (loss) on financial instruments1.17 (0.83)(0.13)(1.69)
Other cash income (expense)- 0.01 0.01 (0.03)
Adjusted funds flow(3)6.52 10.59 7.88 11.20 
Depletion and depreciation expense(9.11)(8.08)(8.73)(8.11)
Unrealized gain (loss) on financial instruments1.14 1.20 2.68 (1.31)
Other expenses(4)(0.41)(0.69)(0.44)(0.64)
Deferred income tax recovery (expense)0.35 (0.81)(0.39)(0.40)
Net income (loss) to common shareholders(1.51)2.21 1.00 0.74 
     
FINANCIAL    
Petroleum and natural gas revenue ($000s)(1)122,835 177,126 433,115 557,064 
Cash flow from operating activities ($000s)65,943 67,840 158,069 241,523 
Adjusted funds flow ($000s)(5)45,211 72,225 164,956 230,612 
Per basic common share ($)(3)0.17 0.27 0.61 0.87 
Free funds flow ($000s)(5)(18,409)5,548 (49,818)(15,859)
Per basic common share ($)(3)(0.07)0.02 (0.19)(0.06)
Net income (loss) to common shareholders ($000s)(10,461)15,108 20,884 15,313 
Per basic common share ($)(0.04)0.06 0.08 0.06 
End of period basic common shares (000s)269,569 266,640 269,569 266,640 
Weighted average basic common shares (000s)269,342 266,390 268,711 Advertisement

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