Q2 2021 Financial and Operational Results CALGARY, Alberta, Aug. 11, 2021 (GLOBE NEWSWIRE) -- Birchcliff Energy Ltd. (“Birchcliff” or the “Corporation”) (TSX: BIR) is proud to announce its financial and operational results for the three and six months ended June 30, 2021.
“Birchcliff had an excellent second quarter in 2021, with solid average production of 75,265 boe/d which resulted in $90.2 million of adjusted funds flow(1), a 315% increase from Q2 2020. Our average production in July exceeded 85,000 boe/d(2) based on field estimates and we are on track to meet our second half production guidance of 84,000 to 86,000 boe/d and our annual average production guidance of 79,000 to 81,000 boe/d. The performance of our new wells and the current strength we are seeing in oil and natural gas prices positions us for a very strong second half in 2021, with significant anticipated increases in adjusted funds flow and free funds flow(1). Birchcliff does not have any fixed price commodity hedges which allows all of our production to benefit from strong oil and natural gas prices and we currently have no intention of entering into any fixed price commodity hedges,” commented Jeff Tonken, President and Chief Executive Officer of Birchcliff.
“Due to the successful execution of our business plan and the recent strengthening of forward oil and natural gas prices, we are increasing our 2021 guidance for adjusted funds flow to $500 million(3) (up from $400 million) and free funds flow to $270 million to $290 million (up from $170 million to $190 million). We remain committed to capital discipline and we are maintaining our guidance for 2021 F&D capital expenditures at $210 million to $230 million, notwithstanding the fact that this is the second time in 2021 that we have increased our guidance for adjusted funds flow and free funds flow,” said Mr. Tonken. “As the majority of our 2021 capital program has now been completed, our total debt(1) is expected to significantly decrease over the remainder of the year. With free funds flow now targeted at $270 million to $290 million, we expect that our total debt at year end will be $500 million to $520 million, down from our previous guidance of $600 million to $620 million. Our total debt at year end is expected to decrease by as much as 34% ($262 million) from our total debt at December 31, 2020 of $762.0 million based on our anticipated F&D capital spending, annual average production and free funds flow in 2021.”
Birchcliff’s unaudited interim condensed financial statements for the three and six months ended June 30, 2021 and related management’s discussion and analysis will be available on its website at www.birchcliffenergy.com and on SEDAR at www.sedar.com.
Q2 2021 HIGHLIGHTS
- Achieved quarterly average production of 75,265 boe/d, which is comparable to Birchcliff’s average production of 74,950 boe/d in Q2 2020.
- Liquids accounted for approximately 22% of Birchcliff’s total production in Q2 2021, as compared to approximately 24% in Q2 2020.
- Generated $90.2 million of adjusted funds flow(1), or $0.34 per basic common share, a 315% increase and a 325% increase, respectively, from Q2 2020. Delivered $81.0 million of cash flow from operating activities, a 513% increase from Q2 2020.
- Delivered $9.3 million of free funds flow(1) in Q2 2021.
- Recorded net income to common shareholders of $43.9 million, or $0.16 per basic common share, as compared to a net loss to common shareholders of $39.5 million and $0.15 per basic common share in Q2 2020.
- Achieved operating expense of $3.14/boe, a 9% increase from Q2 2020.
- Realized an operating netback(1) of $17.19/boe, a 151% increase from Q2 2020.
- F&D capital expenditures were $80.9 million in Q2 2021. During the quarter, Birchcliff continued with the safe and efficient execution of its 2021 capital program (the “2021 Capital Program”), drilling 8 (8.0 net) wells and bringing 14 (14.0 net) wells on production.
- On June 16, 2021, the Corporation released its fourth annual ESG report which outlines Birchcliff’s ESG performance for the year ended December 31, 2020, highlighting Birchcliff as one of the lowest emissions intensity producers in the industry. For more information on Birchcliff’s ESG performance metrics and ESG initiatives, please see the Corporation’s 2020 ESG Report and ESG video which are available on the Corporation’s website at www.birchcliffenergy.com.
https://www.globenewswire.com/news-release/2021/08/11/2279153/0/en/Birchcliff-Energy-Ltd-Announces-Increased-2021-Adjusted-Funds-Flow-and-Free-Funds-Flow-Guidance-Reduced-Total-Debt-Guidance-and-Q2-2021-Financial-and-Operational-Results.html