Birchcliff Energy (BIR) Q3 2025 earnings summary

Executive summary

• Q3 2025 production averaged 80,406 boe/d, up 7% year-over-year, with 82% natural gas, 9% NGLs, 7% condensate, and 2% light oil.

• Adjusted funds flow reached $87.1 million, a 93% increase from Q3 2024, and free funds flow was $15.6 million.

• Operating expense per boe hit a record low of $2.71, down 3% year-over-year.

• Market diversification enabled 75% of natural gas production to realize higher U.S. pricing, with an average realized natural gas sales price of $3.36/Mcf, a 387% premium to AECO.

• Net loss to common shareholders was $14.1 million, primarily due to unrealized losses on financial instruments.

Financial highlights

• Petroleum and natural gas revenue was $149.6 million, up 22% year-over-year.

• Cash flow from operating activities was $78.5 million, up 19% year-over-year.

• Operating netback per boe was $11.15, a 34% increase from Q3 2024.

• F&D capital expenditures totaled $71.5 million in Q3 2025.

• Total debt at quarter-end was $519.5 million, a 3% decrease from year-end 2024.

Outlook and guidance

• 2025 annual average production guidance increased to 79,000–80,000 boe/d (from 76,000–79,000 boe/d); Q4 2025 production expected at ~81,500 boe/d.

• 2025 F&D capital expenditures guidance tightened to $290–$300 million.

• 2025 adjusted funds flow guidance reduced to $415 million, with free funds flow of $115–$125 million and year-end total debt of $455–$465 million.

• 2026 preliminary capital budget set at $325–$375 million, targeting annual average production of 81,000–84,000 boe/d and up to 87,500 boe/d in Q4 2026.

• Capital allocation priorities remain: profitable production growth, balance sheet strength, and sustainable dividends.