Overview

* Birchcliff Q2 2025 production rises 1% yr/yr, driven by condensate-rich wells

* Adjusted funds flow up 76% yr/yr, boosted by higher natural gas prices

* Net loss of C$13.9 mln due to unrealized financial instrument losses

Outlook

* Birchcliff reaffirms 2025 production guidance of 76,000 to 79,000 boe/d

* Company expects 2025 total debt to be C$395 mln to C$435 mln

* Birchcliff plans to allocate free funds flow towards debt reduction

* Company anticipates stronger natural gas prices in H2 2025

Result Drivers

* PRODUCTION INCREASE - Achieved a 1% increase in Q2 2025 production to 79,480 boe/d, driven by strong performance from new Montney/Doig wells

* CONDENSATE-RICH WELLS - 22% increase in condensate production in Q2 2025 due to targeting high-value condensate-rich natural gas wells in Pouce Coupe and Gordondale

* NATURAL GAS PRICING - Higher realized natural gas sales price and market diversification contributed to a 76% increase in adjusted funds flow

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net -C$13.90

Income mln

Q2 Capex C$73.30

mln

Q2 C$109.60

Operatin mln

g Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

* Wall Street's median 12-month price target for Birchcliff Energy Ltd ( BIREF ) is C$8.00, about 20.8% above its August 12 closing price of C$6.34

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)