Birchcliff Energy Ltd. Announces Unaudited 2025 Full-Year and Fourth Quarter Results, 2025 Reserves Highlights and Appointment of Chris Carlsen to the Board of Directors

Core Insights - Birchcliff Energy Ltd. reported strong financial and operational results for 2025, achieving record production levels and significant improvements in cost efficiency [2][11]. Financial Performance - The company generated adjusted funds flow of $422.8 million in 2025, a 79% increase from 2024, and free funds flow of $116.9 million, a 422% increase year-over-year [11][19]. - Cash flow from operating activities reached $407.7 million, doubling from 2024, with Q4 2025 cash flow at $93.5 million, a 105% increase from Q4 2024 [11][19]. - Net income to common shareholders was $64.9 million for 2025, a 16% increase from 2024, while Q4 2025 net income was $27.2 million, a 23% decrease from Q4 2024 [11][19]. Production and Operational Highlights - Average production for 2025 was 80,086 boe/d, a 4% increase from 2024, with Q4 2025 production averaging 83,028 boe/d, a 7% increase from Q4 2024 [11][19]. - The company brought 29 wells on production in 2025, with capital expenditures for F&D totaling $305.9 million [11][26]. - Birchcliff achieved all-in PDP F&D costs of $10.15/boe, a 12% improvement from 2024, and a PDP F&D operating netback recycle ratio of 1.4x, a 40% improvement from the previous year [3][11]. Debt Management - Total debt was reduced by 14% year-over-year to $459.9 million at the end of 2025, with a total debt to adjusted funds flow ratio of 1.1x compared to 2.3x at the end of 2024 [11][19]. Reserves and Asset Valuation - At December 31, 2025, Birchcliff's PDP reserves totaled 218.0 MMboe, with a reserves life index of 7.2 years [3][11]. - The net present value of future net revenue for Birchcliff's PDP reserves was estimated at $2.3 billion, with net asset values per common share of $6.72 for PDP, $13.83 for proved, and $18.13 for proved plus probable reserves [11][36]. Market Diversification - Approximately 75% of Birchcliff's natural gas production in 2025 benefited from market diversification, realizing higher prices in U.S. markets compared to AECO, contributing to an effective average realized natural gas sales price of $4.10/Mcf [11][19].