Core Viewpoint - Birchcliff Energy Ltd. reported strong operational and financial performance in Q2 2025, with significant increases in production and adjusted funds flow, while maintaining a focus on capital efficiency and debt reduction [2][3]. Financial Performance - Average production for Q2 2025 was 79,480 boe/d, a 1% increase from Q2 2024, with 82% being natural gas [8][17]. - Adjusted funds flow reached $94.5 million, or $0.35 per basic common share, marking a 76% increase from Q2 2024 [8][11]. - Cash flow from operating activities was $109.6 million, a 308% increase from Q2 2024 [8][11]. - The average realized natural gas sales price was $3.82/Mcf, an 88% premium to the AECO benchmark price [8][11]. Operational Highlights - Birchcliff drilled 6 wells and brought 12 wells on production in Q2 2025, with F&D capital expenditures totaling $73.3 million [8][14]. - The company targeted high-value condensate-rich natural gas, resulting in a 28% increase in condensate production compared to Q1 2025 [8][17]. - Liquids accounted for 18% of total production in Q2 2025, up from 17% in Q2 2024 [17]. Capital Expenditures and Debt Management - The 2025 capital budget is set between $260 million and $300 million, with 66% already invested in the first half of the year [3][22]. - Birchcliff anticipates generating substantial free funds flow for the remainder of 2025, primarily directed towards reducing total debt by approximately 23% compared to year-end 2024 [3][34]. - Total debt at June 30, 2025, was $523.1 million, a 12% increase from June 30, 2024 [18]. Market Diversification - Approximately 76% of Birchcliff's natural gas volumes realized higher U.S. pricing at the Dawn and NYMEX HH markets compared to AECO [2][16]. - The company has various financial instruments that provide exposure to NYMEX HH pricing, enhancing its market diversification strategy [16]. Future Outlook - Birchcliff reaffirmed its 2025 annual average production guidance of 76,000 to 79,000 boe/d, while adjusting its natural gas price assumptions downward due to market volatility [34]. - The company plans to complete various compressor maintenance projects in Q3 2025 to reduce downtime in Q4 2025 when natural gas prices are expected to strengthen [28].

Core Viewpoint - Birchcliff Energy Ltd. reported strong operational and financial performance in Q2 2025, with significant increases in production and adjusted funds flow, while also focusing on capital efficiency and debt reduction [2][3][4]. Financial Performance - Average production for Q2 2025 was 79,480 boe/d, a 1% increase from Q2 2024, with 82% being natural gas [8][16]. - Adjusted funds flow reached $94.5 million, or $0.35 per basic common share, marking a 76% increase from Q2 2024 [11][17]. - Cash flow from operating activities was $109.6 million, a 308% increase from Q2 2024 [11][17]. - The average realized natural gas sales price was $3.82/Mcf, an 88% premium to the AECO benchmark price [8][17]. Operational Highlights - Birchcliff drilled 6 wells and brought 12 wells on production in Q2 2025, with F&D capital expenditures totaling $73.3 million [19][36]. - The company has completed 66% of its full-year capital budget in the first half of 2025 [3][36]. - The production from condensate-rich natural gas wells showed strong performance, with condensate production increasing by 28% compared to Q1 2025 [8][16]. Debt Management - Total debt at June 30, 2025, was $523.1 million, a 12% increase from June 30, 2024, but a 2% decrease from December 31, 2024 [23]. - The company anticipates reducing total debt by approximately 23% by the end of 2025 compared to year-end 2024 [3][44]. Capital Program and Guidance - Birchcliff's 2025 capital budget is set between $260 million and $300 million, with a focus on high-rate natural gas wells in Q4 2025 [3][44]. - The company reaffirmed its annual average production guidance of 76,000 to 79,000 boe/d for 2025 [44]. Market Diversification - Approximately 76% of Birchcliff's natural gas volumes realized higher U.S. pricing at the Dawn and NYMEX HH markets compared to AECO [2][3]. - The company has diversified its natural gas market exposure, with 41% of total natural gas production sold at the Dawn market and 35% at NYMEX HH [21][45].

Core Insights - Athabasca Oil Corporation reported strong operational performance and consistent financial results in Q2 2025, with a focus on returning capital to shareholders [1][2][10] Financial Performance - Average production reached 39,088 boe/d, a 4% increase year-over-year, with 98% of production being liquids [7] - Adjusted Funds Flow was $128 million ($0.25 per share), while Cash Flow from Operating Activities totaled $101 million [7][20] - Free Cash Flow amounted to $66 million, supporting the company's commitment to return 100% of Free Cash Flow to shareholders in 2025 [7][20] Capital Expenditures and Growth Projects - Total capital expenditures for the quarter were $73 million, with $54 million allocated to the Leismer project to support a phased growth initiative targeting 40,000 bbl/d [7][20] - The Leismer expansion project is on schedule and budget, with an estimated cost of $300 million and expected interim growth targets of 32,000 bbl/d by H2 2026 [14][8] Shareholder Returns - The company has repurchased 24 million shares year-to-date, with approximately $600 million in share buybacks since March 31, 2023, reducing the fully diluted share count by 21% [7][20] - Athabasca aims to return all Free Cash Flow from its Thermal Oil assets to shareholders through share buybacks [7][20] Operational Highlights - Leismer's production is currently around 28,000 bbl/d, with additional well pairs expected to maintain production rates [7][13] - The Hangingstone asset produced approximately 8,900 bbl/d, exceeding management's expectations [15] - Duvernay Energy Corporation completed a four-well pad and is positioned for strong operational momentum with an exit target of ~6,000 boe/d [16][17] Financial Position - The company maintains a Net Cash position of $119 million and total liquidity of $437 million, including $304 million in cash [7][20] - Athabasca has $2.2 billion in tax pools, allowing for a low Crown royalty framework and no forecasted cash taxes for the decade [11][20] Market Outlook - Canadian heavy oil markets remain strong, supported by the Trans Mountain Expansion pipeline and sustained global refining demand, leading to tighter WCS heavy differentials [11] - The company forecasts consolidated Adjusted Funds Flow between $525 - $550 million for 2025, with significant Free Cash Flow expected to support return of capital initiatives [7][20]

Core Insights - Obsidian Energy has successfully completed its first half 2025 capital program, achieving a new production high of 14,000 boe/d in the Peace River asset [4][5][6] - The company is focusing on enhanced oil recovery techniques and has initiated a Clearwater waterflood pilot project in the Dawson field, which is expected to increase reservoir recovery [7][8] - The macro-economic environment remains uncertain, prompting the company to adjust its capital allocation decisions for the second half of 2025 [2] Production Highlights - All 30 wells in the first half program were rig released by the end of May 2025, with all development wells now on production [1] - The Dawson Clearwater program has exceeded expectations, with all five waterflood pilot wells online [2] - Initial production rates from the Dawson field have significantly increased from 189 boe/d in Q4 2023 to over 3,000 boe/d in May 2025 [6] Development Program - The development drilling in the established fields of Harmon Valley South and Dawson has yielded strong production results [2][3] - The HVS field has seen successful results from the "waffle well" drilling design, enhancing initial production performance [6] - The company has identified follow-up locations for further drilling based on successful initial production rates from various pads [6] Waterflood Pilot Project - The Clearwater waterflood pilot project aims to test the potential for increased reservoir oil recovery in the Dawson field [7] - Successful execution of this project could lead to broader implementation of enhanced oil recovery techniques across Peace River assets [8] Light Oil Assets - Obsidian Energy participated in five non-operated wells at the Pembina Cardium Unit 11, achieving an average 30-day IP rate of 223 boe/d per well [9] - The wells were initially rate restricted due to gas takeaway capacity, with peak production rates ranging from 335 to 360 boe/d [9] Hedging Update - The company has added new oil and gas contracts to mitigate risks associated with potentially lower commodity prices [10] - Current oil contracts include WTI swaps and collars with varying volumes and prices, aimed at stabilizing revenue [10][12] Upcoming Events - Obsidian Energy will participate in the RBC Global Energy, Power and Infrastructure Conference on June 3-4, 2025, with a presentation by the President and CEO [14]

Core Viewpoint - Birchcliff Energy Ltd. reported strong operational and financial results for Q1 2025, driven by operational excellence and a high-quality asset base, with significant increases in production and adjusted funds flow compared to Q1 2024 [2][6][19]. Financial Highlights - Average production for Q1 2025 was 77,363 boe/d, a 3% increase from Q1 2024 [6][19]. - Adjusted funds flow reached $124.4 million, an 88% increase from Q1 2024, translating to $0.46 per basic common share [6][11][19]. - Cash flow from operating activities was $126.1 million, a 93% increase from Q1 2024 [6][11][19]. - Net income to common shareholders was $65.7 million, or $0.24 per basic common share, compared to a net loss of $15.0 million in Q1 2024 [6][22]. Operational Activities - The company drilled 14 wells and brought 8 wells on production in Q1 2025, with capital expenditures totaling $111.8 million [6][20][28]. - Birchcliff's market diversification led to an effective average realized natural gas sales price of $4.89/Mcf, a 142% premium to the AECO 7A Monthly Index price [6][19]. Debt and Credit Facilities - Total debt at March 31, 2025, was $534.7 million, a 21% increase from the previous year [23]. - The company extended the maturity dates of its credit facilities to May 11, 2028, with a confirmed borrowing base limit of $850 million [10][23]. 2025 Guidance - Birchcliff reaffirmed its annual average production guidance of 76,000 to 79,000 boe/d and capital expenditures guidance of $260 million to $300 million [14][28]. - The company anticipates a reduction in total debt by approximately 28% from year-end 2024, expecting to exit 2025 with total debt between $365 million and $405 million [14][28].