04:40 PM EDT, 08/13/2025 (MT Newswires) -- Birchcliff Energy ( BIREF ) Thursday after-hours reported a swing to a second-quarter loss due to an unrealized loss on financial instruments.

The company reported a loss of $13.9 million, or $0.05 per share, compared with a year-prior profit of $46.4 million, or $0.17. The loss was due to an unrealized loss of $45.1 million on financial instruments.

Higher natural gas revenue and a realized gain on financial instruments boosted adjusted funds flow for the quarter to $94.5 million, or $0.35 per share, from $53.7 million, or $0.20.

Second-quarter average production rose 1% to 79,480 barrels of oil equivalent per day (boe/d).

The company confirmed its production guidance for 2025 of 76,000 - 79,000 boe/d. It lowered its guidance for adjusted funds flow to $445 million, from the previous $480 million, primarily because of the volatility in natural gas commodity prices.

Birchcliff will pay its regular quarterly dividend of $0.03 per share on Sept. 29.

"We maintained our focus on operational excellence and efficient execution and benefitted from the performance of the initial wells of our 2025 capital program, achieving second quarter average production of 79,480 boe/d. The 12 wells brought on production in Q2 2025 targeted high-value condensate-rich natural gas, yielding attractive netbacks," said Chief Executive Chris Carlsen. "For the remainder of 2025, we anticipate that we will generate substantial free funds flow, which will primarily be directed towards reducing total debt by approximately 23% as compared to year end 2024, after the payment of our base dividend."

The company's shares closed down $0.16 to $6.18 on the Toronto Stock Exchange.