CALGARY, Alberta, Aug. 12, 2026 (GLOBE NEWSWIRE) — Birchcliff Energy Ltd. (“Birchcliff” or the “Corporation”) (TSX: BIR) is pleased to announce its Q2 2026 financial and operational results, updated 2026 guidance and the addition of the Malin hub to its natural gas marketing portfolio. 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 September 30, 2026.
HIGHLIGHTS
- Q2 2026 average production of 77,562 boe/d (84% natural gas and 16% liquids), while completing a planned turnaround and optimization projects at its Pouce Coupe gas plant that impacted average quarterly production by approximately 6,900 boe/day. Current production is approximately 87,500 boe/day.(1)
- Q2 2026 adjusted funds flow(2) of $93.7 million ($0.34 per basic common share(3)). Cash flow from operating activities of $100.9 million.
- Q2 2026 net income to common shareholders of $12.8 million ($0.05 per basic common share).
- Updated its 2026 annual average production guidance to between 83,000 and 84,000 boe/d, with Q4 2026 average production of approximately 88,500 boe/d, and F&D capital expenditures guidance to between $350 million and $375 million.
- Further diversified its natural gas marketing portfolio with the addition of 35,000 MMBtu/d of service at the Malin hub in Oregon commencing in 2027 for a four-year term. Birchcliff’s effective average realized natural gas sales price(3) in Q2 2026 was $3.00/Mcf, which represents a 70% premium to the average AECO 5A benchmark price.(4)
- Continued with the successful execution of its 2026 capital program in Q2 2026, drilling 15 (15.0 net) wells and bringing 10 (10.0 net) wells on production, including a new well brought on production in the Corporation’s Elmworth area. F&D capital expenditures in Q2 2026 totalled $121.2 million.
- Paid its Q2 2026 dividend and 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, for an aggregate of $15.1 million in shareholder returns in the quarter.
Chris Carlsen, President and Chief Executive Officer, commented: “Birchcliff delivered another strong quarter in Q2 2026, underscoring the consistency and reliability of our asset base and our team’s disciplined execution. Our team safely executed a 35-day turnaround at our Pouce Coupe gas plant in Q2 2026 on time and on budget. Importantly, we have achieved our goal of fully utilizing the existing natural gas processing infrastructure in our Greater Pouce area ahead of schedule, with current production of approximately 87,500 boe/d. This milestone positions Birchcliff to benefit from a lower per-unit cost structure, stronger operating margins and enhanced free funds flow generation moving forward. Based on our well performance to date and achieving our objective of fully utilizing our existing natural gas processing infrastructure, we have updated our 2026 annual average production guidance to 83,000 to 84,000 boe/d, with production expected to average approximately 88,500 boe/d in Q4 2026. With more than 20 years of high-quality drilling inventory available within our Greater Pouce area, we believe that Birchcliff is well positioned to generate significant free funds flow and create long-term value for our shareholders.”
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”.
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(1) Represents the average daily production for the period from August 1, 2026 to August 7, 2026, based on field estimates. See “Advisories – Production”.
(2) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures”.
(3) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.
(4) Adjusted for Birchcliff’s heat premium.
Q2 2026 UNAUDITED FINANCIAL AND OPERATIONAL SUMMARY
| Three months ended | Six months ended | ||||
| June 30 | June 30 | ||||
| 2026 | 2025 | 2026 | 2025 | ||
| OPERATING | |||||
| Average production | |||||
| Light oil (bbls/d) | 1,333 | 1,571 | 1,295 | 1,682 | |
| Condensate (bbls/d) | 4,633 | 5,439 | 4,993 | 4,842 | |
| NGLs (bbls/d) | 6,529 | 6,898 | 6,900 | 7,260 | |
| Natural gas (Mcf/d) | 390,398 | 393,435 | 398,511 | 387,860 | |
| Total (boe/d) | 77,562 | 79,480 | 79,607 | 78,427 | |
| Average realized sales prices (CDN$) | |||||
| Light oil (per bbl) | 132.81 | 83.23 | 114.43 | 89.62 | |
| Condensate (per bbl) | 130.44 | 86.44 | 114.50 | 91.46 | |
| NGLs (per bbl) | 26.27 | 20.76 | 28.67 | 24.52 | |
| Natural gas (per Mcf) | 2.56 | 2.82 | 3.22 | 3.22 | |
| Total (per boe) | 25.15 | 23.30 | 27.64 | 25.76 | |
| NETBACK AND COST ($/boe) | |||||
| Petroleum and natural gas revenue | 25.15 | 23.30 | 27.64 | 25.76 | |
| Royalty expense | (2.14) | (0.94) | (1.58) | (1.54) | |
| Operating expense | (2.93) | (2.87) | (2.92) | (2.95) | |
| Transportation and other expense(1) | (5.34) | (5.81) | (5.30) | (5.61) | |
| Operating netback(1) | 14.74 | 13.68 | 17.84 | 15.66 | |
| G&A expense, net | (1.30) | (1.27) | (1.35) | (1.34) | |
| Interest expense | (0.92) | (1.26) | (0.91) | (1.27) | |
| Lease interest expense | (0.29) | (0.31) | (0.29) | (0.32) | |
| Realized gain on financial instruments(2) | 1.05 | 2.23 | 1.82 | 2.69 | |
| Adjusted funds flow(1) | 13.28 | 13.07 | 17.11 | 15.42 | |
| Depletion and depreciation expense | (9.43) | (8.87) | (9.29) | (8.93) | |
| Unrealized loss on financial instruments(2) | (1.29) | (6.24) | (0.09) | (1.45) | |
| Other expenses(3) | (0.21) | (0.39) | (0.26) | (0.43) | |
| Deferred income tax (expense) recovery | (0.54) | 0.51 | (1.73) | (0.96) | |
| Net income (loss) to common shareholders | 1.81 | (1.92) | 5.74 | 3.65 | |
| FINANCIAL | |||||
| Petroleum and natural gas revenue ($000s) | 177,531 | 168,518 | 398,257 | 365,706 | |
| Cash flow from operating activities ($000s) | 100,890 | 109,617 | 253,673 | 235,714 | |
| Adjusted funds flow ($000s)(4) | 93,745 | 94,515 | 246,470 | 218,928 | |
| Per basic common share ($)(1) | 0.34 | 0.35 | 0.90 | 0.80 | |
| Free funds flow ($000s)(4) | (27,417) | 21,252 | 17,920 | 33,846 | |
| Per basic common share ($)(1) | (0.10) | 0.08 | 0.07 | 0.12 | |
| Net income (loss) to common shareholders ($000s) | 12,803 | (13,895) | 82,768 | 51,832 | |
| Per basic common share ($) | 0.05 | (0.05) | 0.30 | 0.19 | |
| End of period basic common shares (000s) | 274,430 | 272,884 | 274,430 | 272,884 | |
| Weighted average basic common shares (000s) | 274,596 | 272,347 | 274,745 | 271,982 | |
| Dividends on common shares ($000s) | 8,231 | 8,178 | 16,478 | 16,329 | |
| F&D capital expenditures ($000s)(5) | 121,162 | 73,263 | 228,550 | 185,082 | |
| Total capital expenditures ($000s)(4) | 121,280 | 73,715 | 229,510 | 186,188 | |
| Revolving term credit facilities($000s) | 459,232 | 528,660 | 459,232 | 528,660 | |
| Total debt ($000s)(6) | 469,866 | 523,129 | 469,866 | 523,129 | |
(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 has updated its annual average production guidance to between 83,000 and 84,000 boe/d (previously 81,000 to 84,000 boe/d), with Q4 2026 average production of approximately 88,500 boe/d, as a result of the performance of the wells brought on production to date and the Corporation achieving its objective of fully utilizing its existing natural gas processing infrastructure in its Greater Pouce area.
- The Corporation has tightened its F&D capital expenditures guidance to between $350 million and $375 million (previously $325 million to $375 million) to reflect actual F&D capital spending year to date and expectations for the remainder of the year.
- In addition, Birchcliff has updated its guidance for free funds flow, total debt and royalty expense to reflect the changes to its production and F&D capital spending guidance, as well as to reflect its Q2 2026 results and updated commodity price assumptions.
- Birchcliff now expects to exit 2026 with total debt(5) of $410 million to $435 million, which equates to a total debt to adjusted funds flow ratio(6) of approximately 0.9x at the mid-point of the total debt guidance range.
- The following tables set forth Birchcliff’s updated and previous guidance and commodity price assumptions for 2026, as well as its free funds flow sensitivity:
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(5) Capital management measure. See “Non-GAAP and Other Financial Measures”.
(6) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.
| Updated 2026 guidance and assumptions – August 12, 2026(1) | Previous 2026 guidance and assumptions – May 13, 2026 | ||
| Production | |||
| Annual average production (boe/d) | 83,000 – 84,000 | 81,000 – 84,000 | |
| % Light oil | 1% | 1% | |
| % Condensate | 6% | 6% | |
| % NGLs | 9% | 9% | |
| % Natural gas | 84% | 84% | |
| Average Expenses ($/boe) | |||
| Royalty | $1.95 – $2.15 | $2.15 – $2.35 | |
| Operating | $2.75 – $2.95 | $2.75 – $2.95 | |
| Transportation and other(2) | $5.20 – $5.40 | $5.20 – $5.40 | |
| Adjusted Funds Flow (millions)(3) | $455 | $455 | |
| F&D Capital Expenditures (millions) | $350 – $375 | $325 – $375 | |
| Free Funds Flow (millions)(3) | $80 – $105 | $80 – $130 | |
| Total Debt at Year End (millions)(4) | $410 – $435 | $385 – $435 | |
| Natural Gas Market Exposure | |||
| AECO exposure as a % of total natural gas production | 44% | 44% | |
| Dawn exposure as a % of total natural gas production | 38% | 38% | |
| NYMEX HH exposure as a % of total natural gas production | 16% | 16% | |
| Alliance exposure as a % of total natural gas production | 2% | 2% | |
| Commodity Prices | |||
| Average WTI price (US$/bbl) | $79.00(5) | $83.00 | |
| Average WTI-MSW differential (CDN$/bbl) | $2.35(5) | $2.20 | |
| Average AECO price (CDN$/GJ) | $1.80(5) | $1.80 | |
| Average Dawn price (US$/MMBtu) | $3.20(5) | $3.35 | |
| Average NYMEX HH price (US$/MMBtu) | $3.50(5) | $3.70 | |
| Exchange rate (CDN$ to US$1) | 1.39(5) | 1.36 |
| Forward five months’ free funds flow sensitivity(5)(6) | Estimated change to 2026 free funds flow (millions) |
| Change in WTI US$1.00/bbl | $1.6 |
| Change in NYMEX HH US$0.10/MMBtu | $1.2 |
| Change in Dawn US$0.10/MMBtu | $3.4 |
| Change in AECO CDN$0.10/GJ | $3.5 |
| Change in CDN/US exchange rate CDN$0.01 | $1.8 |
(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 83,500 boe/d in 2026, which is the mid-point of Birchcliff’s updated 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 August 5, 2026, which include settled benchmark commodity prices and the CDN/US exchange rate for the period from January 1, 2026 to July 31, 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.
OUTLOOK
- For the remainder of 2026, with the full utilization of the Corporation’s natural gas processing infrastructure in the Greater Pouce area, production from the area is expected to generate meaningful free funds flow, which will be primarily used to reduce total debt and pay Birchcliff’s common share dividend. Looking forward, the anticipated free funds flow generated from the Greater Pouce area provides the Corporation with the optionality to direct internally generated funds towards further debt reduction, shareholder returns through dividends or opportunistic share buybacks and/or advancing development in Birchcliff’s Elmworth area, including completing and filling the first phase of its proposed 100% owned and operated natural gas processing plant in Elmworth (the “Goodfare Gas Plant”).
- Birchcliff remains optimistic about the future macro natural gas price environment. The continued ramp up of LNG Canada, together with a wave of new U.S. Gulf Coast LNG projects that have been proposed or are currently under construction, is expected to structurally improve North American natural gas export demand over the next several years. At the same time, the rapid build-out of domestic gas-fired power generation to serve data centres and artificial intelligence workloads is emerging as a new and stable source of incremental demand for natural gas. As one of the lowest-cost, inventory-rich Montney natural gas and liquids producers, Birchcliff is well positioned to benefit from this strong anticipated commodity price environment as it continues to execute on its strategy of generating profitable production growth, further strengthening its balance sheet and providing sustainable shareholder returns.
- The Corporation has initiated its formal budgeting process for 2027 and expects to release preliminary guidance for 2027 on November 12, 2026, along with its Q3 2026 results.
- As announced on August 5, 2026, Birchcliff welcomes the appointment of Rebecca Schulz to the Board. Ms. Schulz’s expertise as a public affairs and policy leader and her extensive experience across government, business, energy, environment and economic development provide valuable additional diversity of experience to Birchcliff.
Q2 2026 FINANCIAL AND OPERATIONAL RESULTS
Production
- Production averaged 77,562 boe/d in Q2 2026, a 2% decrease from Q2 2025. The decrease was primarily due to the completion of a 35-day planned turnaround and optimization projects at its Pouce Coupe gas plant in
