Birchcliff Energy Ltd T.BIR

Quick Guidance Question: Cash Surplus Dec. 31/22

[TouchDown12]

Quick Question BB: is the reason for the drop in Cash surplus in the guidance update (see chart below) B/C of the redemption of the preferred shares (about 89M)? Just asking for a friend. Thanks TD12

2022 Guidance and Commodity Price Assumptions

	Updated 2022 guidance and assumptions – August 10, 2022(1)	Previous 2022 guidance and assumptions – May 11, 2022	Original 2022 guidance and assumptions – January 19, 2022
Production
Annual average production (boe/d)	78,000 – 80,000	78,000 – 80,000	78,000 – 80,000
% Light oil	3%	3%	3%
% Condensate	6%	7%	7%
% NGLs	10%	10%	10%
% Natural gas	81%	80%	80%
Q4 average production (boe/d)	81,000 – 83,000	81,000 – 83,000	81,000 – 83,000
Average Expenses ($/boe)
Royalty(2)	6.60 – 6.80	7.10 – 7.30	3.10 – 3.30
Operating(2)	3.30 – 3.50	3.15 – 3.35	3.15 – 3.35
Transportation and other(3)	5.30 – 5.50	5.20 – 5.40	4.90 – 5.10
Interest(2)	0.30 – 0.50	0.20 – 0.40	0.50 – 0.60
Adjusted Funds Flow(4)	$1.115 billion	$1.180 billion	$0.590 billion
F&D Capital Expenditures (millions)	$275 – $285(5)	$240 – $260	$240 – $260
Free Funds Flow (millions)(4)	$830 – $840	$920 – $940	$330 – $350
Excess Free Funds Flow (millions)(4)(6)	$810 – $820	$900 – $920	N/A
Surplus (Total Debt) at Year End (millions)(7)	$160 – $170(8)	$260 – $280	($175 – $195

[Tothemoon2]

No.  Higher costs and a little lower strip I believe.  They had factored in the preferred redemption last time too.

[TouchDown12]

Thank you! TD12