تعلن شركة Birchcliff Energy Ltd. عن نتائج قوية للربع الأول من عام 2026 وتعلن عن أرباح الربع الثاني من عام 2026
CALGARY, Alberta, May 13, 2026 (GLOBE NEWSWIRE) -- Birchcliff Energy Ltd. (" Birchcliff " or the " Corporation ") (TSX: BIR ) is pleased to announce its Q1 2026 financial and operational results. Birchcliff is also pleased to announce that its board of directors (the " Board ") has declared a quarterly cash dividend of $0.03 per common share for the quarter ending June 30, 2026. Chris Carlsen, Birchcliff's President and Chief Executive Officer, commented: "We are pleased to report strong operational and financial results for the first quarter of 2026. Birchcliff delivered average production of 81,675 boe/d, a 6% increase year-over-year, driven by our continued focus on operational excellence and the robust performance from our assets. We generated adjusted funds flow ( 1 ) of $152.7 million (a 23% increase from Q1 2025) and free funds flow (1) of $45.3 million (a 260% increase from Q1 2025), driven by higher production volumes and strong realized prices. In the quarter, we continued to benefit from our natural gas market diversification, with approximately 56% of our natural gas production realizing higher U.S. pricing at the Dawn and NYMEX HH markets as compared to AECO. This contributed to an effective average realized natural gas sales price ( 2 ) of $4.60/Mcf in Q1 2026, which represents a 112% premium to the average benchmark AECO 5A price. ( 3 ) We utilized our free funds flow to reduce our total debt ( 4 ) by $36.5 million from December 31, 2025, to $423.5 million, and pay our quarterly base dividend. Looking forward, our 2026 annual production guidance of 81,000 to 84,000 boe/d and F&D capital expenditures guidance of $325 million to $375 million are unchanged, with production expected to reach ~87,500 boe/d in Q4 2026 at the high end of capital spending. As a result of our full exposure to forecasted liquids prices, which have significantly strengthened since the beginning of the year, we have increased our adjusted funds flow and free funds flow guidance for 2026. We look forward to reporting on our progress throughout the year as we continue to execute on our strategy of investing in and profitably growing our business, strengthening our balance sheet and paying a sustainable base dividend." Q1 2026 FINANCIAL AND OPERATIONAL HIGHLIGHTS Average production of 81,675 boe/d (83% natural gas and 17% liquids), a 6% increase from Q1 2025. Adjusted funds flow of $152.7 million, or $0.56 per basic common share, (2) a 23% and 22% increase, respectively, from Q1 2025. Cash flow from operating activities of $152.8 million, a 21% increase from Q1 2025. Free funds flow of $45.3 million, or $0.16 per basic common share, (2) a 260% and 220% increase, respectively, from Q1 2025. Net income to common shareholders of $70.0 million, or $0.25 per basic common share, a 6% and 4% increase, respectively, from Q1 2025. Operating netback (2) of $20.83/boe, an 18% increase from Q1 2025. Drilled 9 (9.0 net) wells and brought 10 (10.0 net) wells on production, with F&D capital expenditures totalling $107.4 million in Q1 2026. At March 31, 2026, Birchcliff had invested approximately 31% ( 5 ) of its 2026 F&D capital budget. Total debt of $423.5 million at March 31, 2026, a 21% decrease from March 31, 2025. Subsequent to the end of Q1 2026, Birchcliff opportunistically purchased an aggregate of 1,156,655 common shares under its normal course issuer bid at an average price of $5.93 per share, before fees. ____________________________ (1) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" . (2) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures" . (3) Adjusted for Birchcliff's heat premium. (4) Capital management measure. See "Non-GAAP and Other Financial Measures". (5) Based on the mid-point of Birchcliff's 2026 F&D capital budget of $325 million to $375 million. Birchcliff's unaudited interim condensed financial statements for the three months ended March 31, 2026 and related management's discussion and analysis will be available on its website at www.birchcliffenergy.com and on SEDAR+ at www.sedarplus.ca . DECLARATION OF Q2 2026 QUARTERLY DIVIDEND The Board has declared a quarterly cash dividend of $0.03 per common share for the quarter ending June 30, 2026. The dividend will be payable on June 30, 2026 to shareholders of record at the close of business on June 15, 2026. The dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). EXTENSION OF CREDIT FACILITIES Subsequent to the end of Q1 2026, Birchcliff's syndicate of lenders completed its regular semi-annual review of the borrowing base limit under the Corporation's extendible revolving credit facilities (the " Credit Facilities "). In connection therewith, the agreement governing the Credit Facilities was amended effective May 6, 2026 to extend the maturity dates of each of the syndicated extendible revolving term credit facility and the extendible revolving working capital facility from May 11, 2028 to May 11, 2029. In addition, the lenders confirmed the borrowing base limit at $850 million. ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS Birchcliff's annual and special meeting of shareholders is scheduled to take place tomorrow, Thursday, May 14, 2026, at 3:00 p.m. (Mountain Daylight Time) in the McMurray Room at the Calgary Petroleum Club, 319 – 5 th Avenue S.W., Calgary, Alberta. This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. For further information regarding the forward-looking statements and forward-looking information contained herein, see "Advisories – Forward-Looking Statements". With respect to the disclosure of Birchcliff's production contained in this press release, production volumes have been disclosed on a "gross" basis, as such term is defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (" NI 51-101 "). For further information regarding the disclosure of Birchcliff's production contained herein, see "Advisories – Production". In addition, this press release uses various "non-GAAP financial measures", "non-GAAP ratios" and "capital management measures" as such terms are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (" NI 52-112 "). Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and might not be comparable to similar financial measures disclosed by other issuers. For further information regarding the non-GAAP and other financial measures used in this press release, see "Non-GAAP and Other Financial Measures". Q1 2026 UNAUDITED FINANCIAL AND OPERATIONAL SUMMARY Three months ended Three months ended March 31, 2026 March 31, 2025 OPERATING Average production Light oil (bbls/d) 1,256 1,795 Condensate (bbls/d) 5,357 4,238 NGLs (bbls/d) 7,276 7,626 Natural gas (Mcf/d) 406,714 382,224 Total (boe/d) 81,675 77,363 Average realized sales prices (CDN$) Light oil (per bbl) 94.69 95.27 Condensate (per bbl) 100.56 97.98 NGLs (per bbl) 30.85 27.95 Natural gas (per Mcf) 3.86 3.64 Total (per boe) 30.03 28.32 NETBACK AND COST ($/boe) Petroleum and natural gas revenue 30.03 28.32 Royalty expense (1.03) (2.16) Operating expense (2.91) (3.04) Transportation and other expense ( 1 ) (5.26) (5.41) Operating netback ( 1 ) 20.83 17.71 G&A expense, net (1.39) (1.42) Interest expense (0.92) (1.27) Lease interest expense (0.28) (0.33) Realized gain on financial instruments ( 2) 2.54 3.18 Adjusted funds flow ( 1 ) 20.78 17.87 Depletion and depreciation expense (9.15) (8.99) Unrealized gain on financial instruments ( 2) 1.06 3.53 Other expenses ( 3 ) (0.30) (0.48) Deferred income tax expense (2.87) (2.49) Net income to common shareholders 9.52 9.44 FINANCIAL Petroleum and natural gas revenue ($000s) 220,726 197,188 Cash flow from operating activities ($000s) 152,783 126,097 Adjusted funds flow ($000s) ( 4 ) 152,725 124,413 Per basic common share ($) ( 1 ) 0.56 0.46 Free funds flow ($000s) ( 4 ) 45,337 12,594 Per basic common share ($) ( 1 ) 0.16 0.05 Net income to common shareholders ($000s) 69,965 65,727 Per basic common share ($) 0.25 0.24 End of period basic common shares (000s) 275,486 272,071 Weighted average basic common shares (000s) 274,895 271,614 Dividends on common shares ($000s) 8,247 8,151 F&D capital expenditures ($000s) ( 5 ) 107,388 111,819 Total capital expenditures ($000s) ( 4 ) 108,230 112,473 Revolving term credit facilities ($000s) 426,494 518,581 Total debt ($000s) ( 6 ) 423,494 534,710 (1) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures". (2) Birchcliff's financial instruments consist of its NYMEX HH/AECO 7A basis swap contracts. (3) Includes non-cash items such as compensation, accretion, amortization of deferred financing fees and other gains and losses. (4) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" . (5) See "Advisories – F&D Capital Expenditures". (6) Capital management measure. See "Non-GAAP and Other Financial Measures". 2026 GUIDANCE Birchcliff is reaffirming its 2026 annual average production guidance of 81,000 to 84,000 boe/d and F&D capital expenditures guidance of $325 million to $375 million. The ongoing conflict in the Middle East has introduced significant commodity price volatility, with benchmark oil prices trading significantly higher as compared to the beginning of the year. Conversely, there has been relative weakness in the AECO natural gas sales market, where prices have been challenged due to regional oversupply and lower export demand from the U.S. pacific west coast that has resulted in elevated inventory storage levels in Western Canada. As a result, Birchcliff has updated its commodity price assumptions for 2026 and revised its guidance for adjusted funds flow, free funds flow and total debt accordingly. Birchcliff has also updated its guidance for royalty, operating and transportation and other expenses and its natural gas market exposure to reflect its updated commodity price assumptions and Q1 2026 results. Birchcliff now expects to exit 2026 with total debt of $385 million to $435 million, which equates to a total debt to adjusted funds flow ratio ( 6 ) of approximately 0.9x at the mid-point of the total debt guidance range. The following tables set forth Birchcliff's updated and previous guidance and commodity price assumptions for 2026, as well as its free funds flow sensitivity: ________________________________ (6) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures". Updated 2026 guidance and assumptions – May 13, 2026 (1) Previous 2026 guidance and assumptions – January 20, 2026 Production Annual average production (boe/d) 81,000 – 84,000 81,000 – 84,000 % Light oil 1% 1% % Condensate 6% 6% % NGLs 9% 9% % Natural gas 84% 84% Average Expenses ($/boe) Royalty $2.15 – $2.35 $1.85 – $2.05 Operating $2.75 – $2.95 $2.80 – $3.00 Transportation and other (2) $5.20 – $5.40 $5.15 – $5.35 Adjusted Funds Flow (millions) (3) $455 $430 F&D Capital Expenditures (millions) $325 – $375 $325 – $375 Free Funds Flow (millions) (3) $80 – $130 $55 – $105 Total Debt at Year End (millions) (4) $385 – $435 $410 – $460 Natural Gas Market Exposure AECO exposure as a % of total natural gas production 44% 46% Dawn exposure as a % of total natural gas production 38% 38% NYMEX HH exposure as a % of total natural gas production 16% 16% Alliance exposure as a % of total natural gas production 2% - Commodity Prices Average WTI price (US$/bbl) $83.00 (5) $60.00 Average WTI-MSW differential (CDN$/bbl) $2.20 (5) $5.40 Average AECO price (CDN$/GJ) $1.80 (5) $2.60 Average Dawn price (US$/MMBtu) $3.35 (5) $3.40 Average NYMEX HH price (US$/MMBtu) $3.70 (5) $3.60 Exchange rate (CDN$ to US$1) 1.36 (5) 1.37 Forward eight months' free funds flow sensitivity (5)(6) Estimated change to 2026 free funds flow (millions) Change in WTI US$1.00/bbl $2.2 Change in NYMEX HH US$0.10/MMBtu $2.1 Change in Dawn US$0.10/MMBtu $5.3 Change in AECO CDN$0.10/GJ $4.9 Change in CDN/US exchange rate CDN$0.01 $3.0 (1) Birchcliff's guidance for its production commodity mix, adjusted funds flow, free funds flow, total debt and natural gas market exposure in 2026 is based on an annual average production rate of 82,500 boe/d in 2026, which is the mid-point of Birchcliff's annual average production guidance range for 2026. Changes in assumed commodity prices and variances in production forecasts can have an impact on the Corporation's forecasts of adjusted funds flow and free funds flow and the Corporation's other guidance, which impact could be material. In addition, any acquisitions or dispositions completed over the course of 2026 could have an impact on Birchcliff's 2026 guidance and assumptions set forth herein, which impact could be material. For further information regarding the risks and assumptions relating to the Corporation's guidance, see "Advisories – Forward-Looking Statements" . (2) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures". (3) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures". (4) Capital management measure. See "Non-GAAP and Other Financial Measures" . (5) Birchcliff's updated commodity price and exchange rate assumptions and free funds flow sensitivity for 2026 are based on anticipated full-year averages using the Corporation's anticipated forward benchmark commodity prices and the CDN/US exchange rate as of May 7, 2026, which include settled benchmark commodity prices and the CDN/US exchange rate for the period from January 1, 2026 to April 30, 2026. (6) Illustrates the expected impact of changes in commodity prices and the CDN/US exchange rate on the Corporation's updated forecast of free funds flow for 2026, holding all other variables constant. The sensitivity is based on the updated commodity price and exchange rate assumptions set forth in the table above. The calculated impact on free funds flow is only applicable within the limited range of change indicated. Calculations are performed independently and may not be indicative of actual results. Actual results may vary materially when multiple variables change at the same time and/or when the magnitude of the change increases. Q1 2026 FINANCIAL AND OPERATIONAL RESULTS Production Production averaged 81,675 boe/d in Q1 2026, a 6% increase from Q1 2025. The increase was primarily due to incremental production from new Montney wells brought on production since Q1 2025, specifically high-rate and condensate-rich natural gas wells in Pouce Coupe and Gordondale, partially offset by natural production declines. Liquids accounted for 17% of Birchcliff's total production in Q1 2026 as compared to 18% in Q1 2025. Adjusted Funds Flow and Cash Flow From Operating Activities Adjusted funds flow was $152.7 million in Q1 2026, or $0.56 per basic common share, a 23% and 22% increase, respectively, from Q1 2025. Cash flow from operating activities was $152.8 million in Q1 2026, a 21% increase from Q1 2025. The increases were primarily due to higher natural gas revenue in Q1 2026, driven by a 6% increase in both natural gas production and the average realized natural gas sales price from Q1 2025. Cash flow from operating activities and adjusted funds flow were also positively impacted by a 49% decrease in royalty expense from Q1 2025. Net Income to Common Shareholders Net income to common shareholders was $70.0 million in Q1 2026, or $0.25 per basic common share, a 6% and 4% increase, respectively, from Q1 2025. The increases were primarily due to higher adjusted funds flow in Q1 2026, partially offset by a lower unrealized gain on financial instruments of $7.8 million in Q1 2026 as compared to $24.6 million in Q1 2025. Capital Activities and Investment Birchcliff drilled 9 (9.0 net) wells and brought 10 (10.0 net) wells on production in Q1 2026, with F&D capital expenditures totalling $107.4 million in the quarter. Debt and Credit Facilities Total debt was $423.5 million at March 31, 2026, a 21% decrease from March 31, 2025. At March 31, 2026, Birchcliff had a balance outstanding under its Credit Facilities of $430.2 million (March 31, 2025: $522.3 million) from available Credit Facilities of $850.0 million (March 31, 2025: $850.0 million), leaving the Corporation with $419.8 million (49%) of unutilized credit capacity after adjusting for outstanding letters of credit and unamortized deferred financing fees. Natural Gas Market Diversification In Q1 2026, Birchcliff's physical natural gas sales exposure consisted of the AECO, Dawn and Alliance markets. In addition, the Corporation has various financial instruments outstanding that provided it with exposure to NYMEX HH pricing in the quarter. The following table sets forth Birchcliff's effective sales, production and average realized sales price for its natural gas and liquids for Q1 2026, after taking into account the Corporation's financial instruments: Three months ended March 31, 2026 Effective sales (CDN$000s) Percentage of total sales (%) Effective production (per day) Percentage of total natural gas production (%) Percentage of total corporate production (%) Effective average realized sales price (CDN$) Market AECO (1)(2) 37,151 15 180,330 Mcf 44 37 2.29/Mcf Dawn (3) 91,254 37 161,851 Mcf 40 33 6.26/Mcf NYMEX HH (1)(4) Full story available on Benzinga.com
