Birchcliff Energy Ltd. Announces Q3 2025 Results, Increased 2025 Production Guidance and Preliminary 2026 Budget and Declares Q4 2025 Dividend

Core Insights - Birchcliff Energy Ltd. reported strong Q3 2025 financial and operational results, with average production of 80,406 boe/d, adjusted funds flow of $87.1 million, and a quarterly cash dividend of $0.03 per share [1][2][35] Financial Performance - Average production increased by 7% from Q3 2024, driven by strong base production and new well performance [16] - Adjusted funds flow reached $87.1 million, a 93% increase year-over-year, with cash flow from operating activities at $78.5 million, up 19% [6][14] - Free funds flow was reported at $15.6 million, marking a significant recovery from a loss in the previous year [10][15] Production and Operational Highlights - Birchcliff's production guidance for 2025 has been raised to 79,000 to 80,000 boe/d, with Q4 2025 production expected to average approximately 81,500 boe/d [3][25] - The company drilled 9 wells and brought 6 on production in Q3 2025, with capital expenditures totaling $71.5 million [18][10] - Operating expenses were reduced to $2.71/boe, the lowest in company history, contributing to an operating netback of $11.15/boe, a 34% increase from Q3 2024 [6][9] Market Diversification and Pricing - Approximately 75% of Birchcliff's natural gas production realized higher U.S. pricing, leading to an effective average realized natural gas sales price of $3.36/Mcf, a 387% premium to AECO prices [20][22] - The company continues to benefit from market diversification, with significant exposure to the Dawn and NYMEX HH markets [22][24] Capital Allocation and Future Guidance - Birchcliff's preliminary capital budget for 2026 is set at $325 million to $375 million, targeting production growth to 81,000 to 84,000 boe/d [5][31] - The company plans to allocate approximately $300 million to $350 million for its Pouce Coupe and Gordondale assets, with a focus on maximizing production efficiency [5][31] - A formal announcement regarding the 2026 capital budget and updated five-year outlook is expected on January 20, 2026 [6][31]