Birchcliff Energy Ltd. (“
Birchcliff” or the
“
Corporation”) (TSX: BIR) is pleased to announce
that it has filed its annual audited financial statements (the
“
financial statements”) and related management’s
discussion and analysis and its annual information form (the
“
AIF”) for the financial year ended December 31,
2022 (collectively, the “
Annual Filings”) on the
System for Electronic Document Analysis and Retrieval
(“
SEDAR”). The financial statements are consistent
with the unaudited financial results disclosed in the press release
issued by Birchcliff on February 15, 2023. The AIF contains the
reserves data and other oil and gas information as required by
National Instrument 51-101 – Standards of Disclosure for Oil and
Gas Activities (“
NI 51-101”). The Annual Filings
are available electronically on Birchcliff’s website at
www.birchcliffenergy.com and on SEDAR at www.sedar.com.
This press release contains forward-looking
statements within the meaning of applicable securities laws. For
further information regarding the forward-looking statements
contained herein, see “Advisories – Forward-Looking Statements”.
With respect to the disclosure of Birchcliff’s production contained
in this press release, see “Advisories – Production”. In addition,
this press release uses various “non-GAAP financial measures”,
“non-GAAP ratios”, “supplementary financial measures” 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”.
REAFFIRMED BASE DIVIDEND AND UPDATED
OUTLOOK AND GUIDANCE
Birchcliff remains committed to the payment of
its annual base dividend of $0.80 per common share(1), maintaining
capital discipline and generating free funds flow in 2023. As a
result of the recent weakness and volatility in natural gas prices
and the potential for weakness in summer natural gas prices,
Birchcliff has decided to slow the rate of its 2023 capital program
by moving the drilling of 9 (9.0 net) wells to Q3 2023 that were
originally scheduled to be drilled in Q2 2023. These wells are now
anticipated to be brought on production in Q4 2023 (originally
scheduled for Q3 2023), which is expected to result in strong
production in Q4 2023 and Q1 2024, when commodity prices are
forecast to be significantly higher. Birchcliff’s F&D capital
expenditures for 2023 are still forecast to be in the range of $260
million to $280 million.
Birchcliff’s significant ownership and
operatorship of its assets gives it a strong competitive advantage,
providing it with the flexibility to actively manage its capital
program in response to changing economic conditions in order to
protect its strong financial position and base common share
dividend. The Corporation will continue to closely monitor
commodity prices and, where deemed prudent, make further
adjustments to its 2023 capital program, giving consideration to
increasing or decreasing its rate of drilling and capital
investment depending on commodity prices. Birchcliff is taking a
conservative approach to capital investment in 2023 as a result of
the significant ongoing volatility in natural gas prices.
With respect to production, Birchcliff is
reducing its annual average production guidance for 2023 to reflect
the impact of an unexpected outage on Pembina Pipeline
Corporation’s Northern Pipeline system (the “Pipeline
System”), as discussed below under the heading
“Operational Update”, as well as to reflect the 9 wells coming on
production later in 2023 than previously planned and other forecast
adjustments. Annual average production in 2023 is currently
expected to be in the range of 77,000 to 80,000 boe/d (as compared
to Birchcliff’s previous guidance of 81,000 to 83,000 boe/d).
_________________(1) This annual base dividend
is expected to be declared and paid quarterly at the rate of $0.20
per common share. Other than the dividend declared for the quarter
ending March 31, 2023, the declaration of dividends is subject to
the approval of the board of directors (the
“Board”) and is subject to change. See “Advisories
– Forward-Looking Statements”.
Updated 2023 Guidance
Birchcliff is reaffirming its 2023 annual base
common share dividend amount and its 2023 guidance for F&D
capital expenditures. The Corporation is updating certain items of
its 2023 guidance to reflect its revised production guidance and a
lower commodity price forecast for 2023. The following table sets
forth Birchcliff’s updated and previous guidance and commodity
price assumptions for 2023, as well as its free funds flow
sensitivity:
|
Updated 2023 guidance and assumptions – March 15,
2023(1) |
Previous 2023 guidance and assumptions – January 18,
2023 |
Production |
|
|
Annual average production (boe/d) |
77,000 – 80,000 |
81,000 – 83,000 |
% Light oil |
3% |
3% |
% Condensate |
7% |
7% |
% NGLs |
9% |
10% |
% Natural gas |
81% |
80% |
|
|
|
Average Expenses ($/boe) |
|
|
Royalty(2) |
4.25 – 4.45 |
4.25 – 4.45 |
Operating(2) |
3.55 – 3.75 |
3.45 – 3.65 |
Transportation and other(3) |
5.25 – 5.45 |
5.20 – 5.40 |
|
|
|
Adjusted Funds Flow (millions)(4) |
$475 |
$570 |
|
|
|
F&D Capital Expenditures (millions) |
$260 – $280 |
$260 – $280 |
|
|
|
Free Funds Flow (millions)(4) |
$195 – $215 |
$290 – $310 |
|
|
|
Annual Base Dividend (millions)(5) |
$213 |
$213 |
|
|
|
Excess Free Funds Flow (millions)(4)(5) |
($18) – $2 |
$77 – $97 |
|
|
|
Total Debt at Year End (millions)(6) |
$145 – $165(7) |
$50 – $70 |
|
|
|
Natural Gas Market Exposure |
|
|
AECO exposure as a % of total natural gas production |
17%(8) |
17% |
Dawn exposure as a % of total natural gas production |
41%(8) |
41% |
NYMEX HH exposure as a % of total natural gas production |
36%(8) |
36% |
Alliance exposure as a % of total natural gas production |
6%(8) |
6% |
|
|
|
Commodity Prices |
|
|
Average WTI price (US$/bbl) |
78.50(9) |
76.00 |
Average WTI-MSW differential (CDN$/bbl) |
3.25(9) |
4.75 |
Average AECO price (CDN$/GJ) |
3.00(9) |
3.30 |
Average Dawn price (US$/MMBtu) |
3.05(9) |
3.55 |
Average NYMEX HH price (US$/MMBtu) |
3.50(9) |
3.85 |
Exchange rate (CDN$ to US$1) |
1.35(9) |
1.34 |
Forward ten months’ free funds flow
sensitivity(10) |
Estimated change to2023 free funds
flow(millions) |
Change in WTI US$1.00/bbl |
$4.5 |
Change in NYMEX HH
US$0.10/MMBtu |
$5.8 |
Change in Dawn US$0.10/MMBtu |
$7.1 |
Change in AECO CDN$0.10/GJ |
$3.4 |
Change in CDN/US exchange rate CDN$0.01 |
$5.1 |
(1) Birchcliff’s updated guidance for its
production commodity mix, adjusted funds flow, free funds flow,
excess free funds flow, total debt and natural gas market exposure
in 2023 is based on an annual average production rate of 78,500
boe/d in 2023, which is the mid-point of Birchcliff’s updated
annual average production guidance range for 2023. Birchcliff’s
updated guidance for its free funds flow, excess free funds flow
and total debt in 2023 is based on F&D capital expenditures of
approximately $270 million in 2023, which is the mid-point of the
Corporation’s F&D capital expenditures guidance range for 2023.
For further information regarding the risks and assumptions
relating to the Corporation’s guidance, see “Advisories –
Forward-Looking Statements”.(2) Supplementary financial measure.
See “Non-GAAP and Other Financial Measures”.(3) Non-GAAP ratio. See
“Non-GAAP and Other Financial Measures”.(4) Non-GAAP financial
measure. See “Non-GAAP and Other Financial Measures”.(5) Assumes
that an annual base dividend of $0.80 per common share is paid and
that there are 266 million common shares outstanding, with no
changes to the base dividend rate and no special dividends paid.
Other than the dividend declared for the quarter ending March 31,
2023, the declaration of dividends is subject to the approval of
the Board and is subject to change.(6) Capital management measure.
See “Non-GAAP and Other Financial Measures”.(7) The forecast of
total debt at December 31, 2023 is expected to be comprised of any
amounts outstanding under the Corporation’s extendible revolving
term credit facilities (the “Credit Facilities”)
plus accounts payable and accrued liabilities and less cash,
accounts receivable and prepaid expenses and deposits at the end of
the year.(8) Birchcliff’s natural gas market exposure for 2023
takes into account its physical and financial basis swap contracts
outstanding as at March 14, 2023.(9) Birchcliff’s updated commodity
price and exchange rate assumptions for 2023 are based on the
settled benchmark commodity prices and CDN/US exchange rate for
January and February 2023 and the forward strip benchmark commodity
prices and CDN/US exchange rate from March 2023 to December 2023 as
of March 3, 2023.(10) 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 2023, holding all other
variables constant. The sensitivity is based on the 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.
Updated Five-Year Outlook
As a result of the changes to Birchcliff’s 2023
guidance and a lower commodity price forecast, Birchcliff is also
updating its five-year outlook for 2023 to 2027. As discussed
above, Birchcliff has significant flexibility to actively manage
its capital spending in response to changing economic conditions.
Birchcliff may accelerate or defer its rate of capital investment
over the five-year period based on its outlook for commodity prices
in order to optimize its investment returns and protect its
dividend and balance sheet.
2024
In the event that commodity prices remain weak
continuing into 2024, Birchcliff currently expects that it will
keep its production relatively flat year-over-year, with 2024
annual average production forecast to be 78,500 boe/d (previously
83,000 boe/d) resulting from forecast 2024 F&D capital
expenditures of $255 million (previously $355 million). Assuming an
annual base dividend of $0.80 per common share, this would result
in 2024 excess free funds flow of $82 million (previously $177
million) and total debt at year end 2024 of $85 million (previously
total surplus(2) of $110 million), based on the forward strip
commodity prices as of March 3, 2023(3).
Outlook to 2027
Over the longer-term, Birchcliff remains
committed to generating substantial free funds flow and delivering
significant returns to shareholders, while achieving disciplined
production growth to fully utilize the Corporation’s existing
processing and transportation capacity. Birchcliff’s updated
five-year outlook for 2023 to 2027 now provides for potential
cumulative free funds flow of approximately $1.3 billion by the end
of the five-year period (previously $2.0 billion) and targeted
production growth of 11% from 2023 to 2027 (previously 10%), with
2027 annual average production of 87,000 boe/d (previously 90,000
boe/d), subject to commodity prices.
The five-year outlook presented herein is for
illustrative purposes only and should not be relied upon as
indicative of future results. The internal projections,
expectations and beliefs underlying this outlook are subject to
change in light of ongoing results and prevailing economic and
industry conditions. Birchcliff’s F&D capital budgets for 2024
to 2027 have not been finalized and are subject to approval by the
Board. Accordingly, the levels of F&D capital expenditures for
2024 to 2027 are subject to change, which could have an impact on
the Corporation’s forecasted production, adjusted funds flow, free
funds flow, excess free funds flow and year end total (debt) or
total surplus over the five-year period. In addition, changes in
assumed commodity prices and variances in production forecasts can
have an impact on the Corporation’s five-year outlook, which impact
could be material.
For further information regarding the
Corporation’s updated five-year outlook and the commodity price and
other assumptions underlying such outlook, see “Advisories –
Forward-Looking Statements” and the Corporation’s corporate
presentation, a copy of which is available on its website at
www.birchcliffenergy.com.
___________________(2) Capital management
measure. See “Non-GAAP and Other Financial Measures”.(3)
Birchcliff’s forecasts for 2024 excess free funds flow and total
debt are based on the following commodity price and exchange rate
assumptions: an average WTI price of US$74.00/bbl; an average AECO
price of CDN$3.30/GJ; an average Dawn price of US$3.55/MMBtu; an
average NYMEX HH price of US$3.70/MMBtu; and an average exchange
rate (CDN$ to US$1) of 1.35. See “Advisories – Forward-Looking
Statements” for further information on the assumptions underlying
such outlook.
OPERATIONAL UPDATE
Pipeline System Outage
On January 19, 2023, Pembina Pipeline
Corporation notified Birchcliff of a force majeure event on the
Pipeline System, which resulted in an unplanned outage impacting a
substantial portion of the volumes on the system, including the
Corporation’s NGLs volumes (see Birchcliff’s press release dated
February 15, 2023). The Pipeline System resumed service at reduced
rates in late February 2023. Birchcliff understands that the
Pipeline System is currently expected to operate under limited NGLs
capacity for a duration of 3 to 5 months.
Although Birchcliff has been able to reduce the
impact of the Pipeline System outage on its production volumes by
retaining NGLs within its natural gas stream to the extent possible
and by utilizing trucking to transport its NGLs where possible, the
outage has impacted, and is expected to continue to impact, the
Corporation’s NGLs sales revenue and volumes.
6-Well Pad (03-06-78-11W6)
As part of the accelerated 2023 capital program
that was initiated in Q4 2022, the Corporation brought 4 (4.0 net)
wells on its 03-06 pad on production in December 2022 and 1 (1.0
net) well on production in early January 2023. These wells are
producing with strong liquids and natural gas rates and are
exceeding internal estimates. The sixth well on this pad is
currently standing and may be completed later in the year as part
of the 2023 capital program. The following table summarizes the
available aggregate and average production rates for the wells from
the 03-06 pad:
|
5 Wells: IP 30(1) |
4 Wells: IP 60(1)(2) |
Aggregate production rate (boe/d) |
4,182 |
3,006 |
|
Aggregate natural gas production rate (Mcf/d) |
8,957 |
6,685 |
|
Aggregate condensate production rate (bbls/d) |
2,681 |
1,886 |
Average per well production rate (boe/d) |
836 |
751 |
|
Average
per well natural gas production rate (Mcf/d) |
1,791 |
1,671 |
|
Average per well condensate production rate (bbls/d) |
536 |
471 |
Condensate-to-gas ratio (bbls/MMcf) |
299 |
282 |
(1) Represents the cumulative volumes for each
well measured at the wellhead separator for the 30 or 60 days (as
applicable) of production immediately after each well was
considered stabilized after producing fracture treatment fluid back
to surface in an amount such that flow rates of hydrocarbons became
reliable. See “Advisories – Initial Production Rates”.(2) Does not
include one well on the 03-06 pad that was drilled in December 2022
and brought on production in early January 2023, as it has not
produced for 60 days post stabilization. See “Advisories – Initial
Production Rates”.
6-Well Pad (14-06-79-12W6)
Birchcliff successfully completed its 6-well
14-06 pad in early January 2023. The pad was drilled in late Q4
2022 in 3 different intervals (3 in the Montney D1, 2 in the
Montney D2 and 1 in the Montney C) and targeted condensate-rich
natural gas. The wells have been on production for approximately 30
days and have produced in-line with the Corporations
expectations.
Ongoing Drilling and Completions Operations
Birchcliff has successfully completed its 4-well
15-27 pad and the wells are currently cleaning up through testers
before being turned over to the Corporation’s permanent facilities,
which is expected later in March. Completions operations are
currently ongoing at Birchcliff’s 4-well 04-23 pad, with the wells
expected to be brought on production through the Corporation’s
permanent facilities in Q2 2023.
Birchcliff’s 2023 capital program is utilizing
two drilling rigs that are currently at work on the Corporation’s
8-well 04-16 pad. This pad is targeting 4 wells in each of the
Basal Doig/Upper Montney and Montney D1 intervals.
ABBREVIATIONS
AECO |
benchmark price for natural gas determined at the AECO ‘C’ hub in
southeast Alberta |
bbl |
barrel |
bbls |
barrels |
bbls/d |
barrels per day |
boe |
barrel of oil equivalent |
boe/d |
barrel of oil equivalent per day |
condensate |
pentanes plus (C5+) |
F&D |
finding and development |
G&A |
general and administrative |
GAAP |
generally accepted accounting principles for Canadian public
companies, which are currently International Financial Reporting
Standards as issued by the International Accounting Standards
Board |
GJ |
gigajoule |
GJ/d |
gigajoules per day |
HH |
Henry Hub |
IP |
initial production |
Mcf |
thousand cubic feet |
MMBtu |
million British thermal units |
MMBtu/d |
million British thermal units per day |
MMcf |
million cubic feet |
MSW |
price for mixed sweet crude oil at Edmonton, Alberta |
NGLs |
natural gas liquids consisting of ethane (C2), propane (C3) and
butane (C4) and specifically excluding condensate |
NYMEX |
New York Mercantile Exchange |
OPEC |
Organization of the Petroleum Exporting Countries |
WTI |
West Texas Intermediate, the reference price paid in U.S. dollars
at Cushing, Oklahoma, for crude oil of standard grade |
$000s |
thousands of dollars |
NON-GAAP AND OTHER FINANCIAL
MEASURES
This press release uses various “non-GAAP
financial measures”, “non-GAAP ratios”, “supplementary financial
measures” and “capital management measures” (as such terms are
defined in NI 52-112), which are described in further detail below.
These measures facilitate management’s comparisons to the
Corporation’s historical operating results in assessing its results
and strategic and operational decision-making and may be used by
financial analysts and others in the oil and natural gas industry
to evaluate the Corporation’s performance.
Non-GAAP Financial Measures
NI 52-112 defines a non-GAAP financial measure
as a financial measure that: (i) depicts the historical or expected
future financial performance, financial position or cash flow of an
entity; (ii) with respect to its composition, excludes an amount
that is included in, or includes an amount that is excluded from,
the composition of the most directly comparable financial measure
disclosed in the primary financial statements of the entity; (iii)
is not disclosed in the financial statements of the entity; and
(iv) is not a ratio, fraction, percentage or similar
representation. The non-GAAP financial measures used in this press
release are not standardized financial measures under GAAP and
might not be comparable to similar measures presented by other
companies. Investors are cautioned that non-GAAP financial measures
should not be construed as alternatives to or more meaningful than
the most directly comparable GAAP financial measures as indicators
of Birchcliff’s performance. Set forth below is a description of
the non-GAAP financial measures used in this press release.
Adjusted Funds Flow, Free Funds Flow and
Excess Free Funds Flow
Birchcliff defines “adjusted funds flow” as cash
flow from operating activities before the effects of
decommissioning expenditures and changes in non-cash operating
working capital. Birchcliff eliminates settlements of
decommissioning expenditures from cash flow from operating
activities as the amounts can be discretionary and may vary from
period to period depending on its capital programs and the maturity
of its operating areas. The settlement of decommissioning
expenditures is managed with Birchcliff’s capital budgeting process
which considers available adjusted funds flow. Changes in non-cash
operating working capital are eliminated in the determination of
adjusted funds flow as the timing of collection and payment are
variable and by excluding them from the calculation, the
Corporation believes that it is able to provide a more meaningful
measure of its operations and ability to generate cash on a
continuing basis. Adjusted funds flow can also be derived from
petroleum and natural gas revenue less royalty expense, operating
expense, transportation and other expense, net G&A expense,
interest expense and any realized losses (plus realized gains) on
financial instruments and plus any other cash income and expense
sources. Management believes that adjusted funds flow assists
management and investors in assessing Birchcliff’s financial
performance after deducting all operating and corporate cash costs,
as well as its ability to generate the cash necessary to fund
sustaining and/or growth capital expenditures, repay debt, settle
decommissioning obligations, buy back common shares and pay
dividends.
Birchcliff defines “free funds flow” as adjusted
funds flow less F&D capital expenditures. Management believes
that free funds flow assists management and investors in assessing
Birchcliff’s ability to generate shareholder returns through a
number of initiatives, including but not limited to, debt
repayment, common share buybacks, the payment of dividends and
acquisitions.
Birchcliff defines “excess free funds flow” as
free funds flow less common share dividends paid. Management
believes that excess free funds flow assists management and
investors in assessing Birchcliff’s ability to further enhance
shareholder returns after the payment of common share dividends,
which may include debt repayment, special dividends, increases to
the Corporation’s base dividend, common share buybacks,
acquisitions and other opportunities that would complement or
otherwise improve the Corporation’s business and enhance long-term
shareholder value.
Birchcliff has disclosed in this press release
forecasts of adjusted funds flow, free funds flow and excess free
funds flow for 2023, excess free funds flow for 2024 and cumulative
free funds flow for the period from 2023 to 2027, which are
forward-looking non-GAAP financial measures. The equivalent
historical non-GAAP financial measures are adjusted funds flow,
free funds flow and excess free funds flow for the twelve months
ended December 31, 2022. The most directly comparable GAAP
financial measure to adjusted funds flow, free funds flow and
excess free funds flow is cash flow from operating activities. The
following table provides a reconciliation of cash flow from
operating activities to adjusted funds flow, free funds flow and
excess free funds flow for the twelve months ended December 31,
2022:
|
Twelve months ended |
|
December 31, |
($000s) |
2022 |
Cash flow from operating activities |
925,275 |
Change in non-cash operating working capital |
25,662 |
Decommissioning expenditures |
2,746 |
Adjusted funds flow |
953,683 |
F&D capital expenditures |
(364,621) |
Free funds flow |
589,062 |
Dividends on common shares |
(71,788) |
Excess free funds flow |
517,274 |
Birchcliff anticipates the forward-looking
non-GAAP financial measures for adjusted funds flow, free funds
flow and excess free funds flow disclosed herein to be lower than
their respective historical amounts for the twelve months ended
December 31, 2022, primarily due to lower anticipated benchmark oil
and natural gas prices which are expected to decrease the average
realized sales prices the Corporation receives for its production.
The forward-looking non-GAAP financial measure for excess free
funds flow disclosed herein is also expected to be lower as a
result of a higher targeted annual common share dividend payment
forecast during 2023 and 2024. The commodity price assumptions on
which the Corporation’s guidance is based are set forth in the
table under the heading “Reaffirmed Base Dividend and Updated
Outlook and Guidance” and in “Advisories – Forward-Looking
Statements”.
Transportation and Other
Expense
Birchcliff defines “transportation and other
expense” as transportation expense plus marketing purchases less
marketing revenue. Birchcliff may enter into certain marketing
purchase and sales arrangements with the objective of reducing any
available transportation and/or fractionation fees associated with
its take-or-pay commitments. Management believes that
transportation and other expense assists management and investors
in assessing Birchcliff’s total cost structure related to
transportation activities. The most directly comparable GAAP
financial measure to transportation and other expense is
transportation expense. The following table provides a
reconciliation of transportation expense to transportation and
other expense for the twelve months ended December 31, 2022:
|
Twelve months ended |
|
December 31, |
($000s) |
|
2022 |
Transportation expense |
|
155,864 |
Marketing purchases |
|
17,866 |
Marketing revenue |
|
(18,806) |
Transportation and other expense |
|
154,924 |
Non-GAAP Ratios
NI 52-112 defines a non-GAAP ratio as a
financial measure that: (i) is in the form of a ratio, fraction,
percentage or similar representation; (ii) has a non-GAAP financial
measure as one or more of its components; and (iii) is not
disclosed in the financial statements of the entity. The non-GAAP
ratio used in this press release is not a standardized financial
measure under GAAP and might not be comparable to similar measures
presented by other companies. Set forth below is a description of
the non-GAAP ratio used in this press release.
Transportation and Other Expense Per
Boe
Birchcliff calculates “transportation and other
expense per boe” as aggregate transportation and other expense in
the period divided by the production (boe) in the period.
Management believes that transportation and other expense per boe
assists management and investors in assessing Birchcliff’s cost
structure as it relates to its transportation and marketing
activities by isolating the impact of production volumes to better
analyze its performance against prior periods on a comparable
basis.
Supplementary Financial
Measures
NI 52-112 defines a supplementary financial
measure as a financial measure that: (i) is, or is intended to be,
disclosed on a periodic basis to depict the historical or expected
future financial performance, financial position or cash flow of an
entity; (ii) is not disclosed in the financial statements of the
entity; (iii) is not a non-GAAP financial measure; and (iv) is not
a non-GAAP ratio. The supplementary financial measures used in this
press release are per unit disclosures of corresponding GAAP
measures presented in the financial statements, which are
calculated by dividing the aggregate GAAP measure by the applicable
unit for the period. The supplementary financial measures used in
this press release are operating expense per boe, royalty expense
per boe and current income tax expense per boe.
Capital Management Measures
NI 52-112 defines a capital management measure
as a financial measure that: (i) is intended to enable an
individual to evaluate an entity’s objectives, policies and
processes for managing the entity’s capital; (ii) is not a
component of a line item disclosed in the primary financial
statements of the entity; (iii) is disclosed in the notes to the
financial statements of the entity; and (iv) is not disclosed in
the primary financial statements of the entity. Set forth below is
a description of the capital management measure used in this press
release.
Total Debt and Total
Surplus
Birchcliff calculates “total debt” and “total
surplus” as the amount outstanding under the Corporation’s Credit
Facilities (if any) plus working capital deficit (less working
capital surplus) plus the fair value of the current asset portion
of financial instruments less the fair value of the current
liability portion of financial instruments and less the current
liability portion of other liabilities at the end of the period.
Management believes that total debt and total surplus assist
management and investors in assessing Birchcliff’s overall
liquidity and financial position at the end of the period. The
following table provides a reconciliation of the amount outstanding
under the Credit Facilities, as determined in accordance with GAAP,
to total debt as at December 31, 2022:
As at December 31, ($000s) |
2022 |
|
Revolving term credit facilities |
131,981 |
|
Working capital deficit (surplus)(1) |
(7,902) |
|
Fair value of financial instruments – asset(2) |
17,729 |
|
Fair value of financial instruments – liability(2) |
(1,345) |
|
Other liabilities(2) |
(1,914) |
|
Total debt(3) |
138,549 |
|
(1) Current liabilities less current assets.(2)
Reflects the current portion only.(3) Total debt can also be
derived from the amounts outstanding under the Corporation’s Credit
Facilities plus accounts payable and accrued liabilities and less
cash, accounts receivable and prepaid expenses and deposits at the
end of the period.
ADVISORIES
Currency
Unless otherwise indicated, all dollar amounts
are expressed in Canadian dollars and all references to “$” and
“CDN$” are to Canadian dollars and all references to “US$” are to
United States dollars.
Boe Conversions
Boe amounts have been calculated by using the
conversion ratio of 6 Mcf of natural gas to 1 bbl of oil. Boe
amounts may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. Given that the
value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency
of 6:1, utilizing a conversion on a 6:1 basis may be misleading as
an indication of value.
F&D Capital
Expenditures
Unless otherwise stated, references in this
press release to “F&D capital expenditures” denotes exploration
and development expenditures as disclosed in the Corporation’s
financial statements in accordance with GAAP, and is primarily
comprised of capital for land, seismic, workovers, drilling and
completions, well equipment and facilities and capitalized G&A
costs and excludes any net acquisitions and dispositions,
administrative assets and the capitalized portion of cash incentive
payments that have not been approved by the Board. Management
believes that F&D capital expenditures assists management and
investors in assessing Birchcliff capital cost outlay associated
with its exploration and development activities for the purposes of
finding and developing its reserves.
Initial Production Rates
Any references in this press release to initial
production rates or other short-term production rates are useful in
confirming the presence of hydrocarbons; however, such rates are
not determinative of the rates at which such wells will continue to
produce and decline thereafter and are not indicative of the
long-term performance or the ultimate recovery of such wells. In
addition, such rates may also include recovered “load oil” or “load
water” fluids used in well completion stimulation. Readers are
cautioned not to place undue reliance on such rates in calculating
the aggregate production for Birchcliff. Such rates are based on
field estimates and may be based on limited data available at this
time. To-date, no pressure transient or well-test interpretation
has been carried out on any of the wells. The natural gas volumes
represent raw natural gas volumes as opposed to sales gas
volumes.
With respect to the production rates for the
Corporation’s 03-06 pad disclosed herein, such rates represent the
cumulative volumes for each well measured at the wellhead separator
for the 30 and 60 days (as applicable) of production immediately
after each well was considered stabilized after producing fracture
treatment fluid back to surface in an amount such that flow rates
of hydrocarbons became reliable (between 1 and 2 days), divided by
30 or 60 (as applicable), which were then added together to
determine the aggregate production rates for the pad and then
divided by 4 or 5, as applicable, to determine the per well average
production rates. The production rates excluded the hours and days
when the wells did not produce.
Production
With respect to the disclosure of Birchcliff’s
production contained in this press release: (i) references to
“light oil” mean “light crude oil and medium crude oil” as such
term is defined in NI 51-101; (ii) references to “liquids” mean
“light crude oil and medium crude oil” and “natural gas liquids”
(including condensate) as such terms are defined in NI 51-101; and
(iii) references to “natural gas” mean “shale gas”, which also
includes an immaterial amount of “conventional natural gas”, as
such terms are defined in NI 51-101. In addition, NI 51-101
includes condensate within the product type of natural gas liquids.
Birchcliff has disclosed condensate separately from other natural
gas liquids as the price of condensate as compared to other natural
gas liquids is currently significantly higher and Birchcliff
believes presenting the two commodities separately provides a more
accurate description of its operations and results therefrom.
Forward-Looking Statements
Certain statements contained in this press
release constitute forward‐looking statements and forward-looking
information (collectively referred to as “forward‐looking
statements”) within the meaning of applicable Canadian
securities laws. The forward-looking statements contained in this
press release relate to future events or Birchcliff’s future plans,
strategy, operations, performance or financial position and are
based on Birchcliff’s current expectations, estimates, projections,
beliefs and assumptions. Such forward-looking statements have been
made by Birchcliff in light of the information available to it at
the time the statements were made and reflect its experience and
perception of historical trends. All statements and information
other than historical fact may be forward‐looking statements. Such
forward‐looking statements are often, but not always, identified by
the use of words such as “seek”, “plan”, “focus”, “future”,
“outlook”, “position”, “expect”, “project”, “intend”, “believe”,
“anticipate”, “estimate”, “forecast”, “guidance”, “potential”,
“proposed”, “predict”, “budget”, “continue”, “targeting”, “may”,
“will”, “could”, “might”, “should”, “would”, “on track”,
“maintain”, “deliver” and other similar words and expressions.
By their nature, forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward‐looking statements. Accordingly,
readers are cautioned not to place undue reliance on such
forward-looking statements. Although Birchcliff believes that the
expectations reflected in the forward-looking statements are
reasonable, there can be no assurance that such expectations will
prove to be correct and Birchcliff makes no representation that
actual results achieved will be the same in whole or in part as
those set out in the forward-looking statements.
In particular, this press release contains
forward‐looking statements relating to:
-
Birchcliff’s plans and other aspects of its anticipated future
financial performance, results, operations, focus, objectives,
strategies, opportunities, priorities and goals;
-
statements with respect to dividends, including that the annual
base dividend of $0.80 per common share for 2023 is expected to be
declared and paid quarterly at the rate of $0.20 per common share;
and
-
the information set forth under the headings “Reaffirmed Base
Dividend and Updated Outlook and Guidance” and “Operational Update”
as it relates to Birchcliff’s outlook and guidance and capital
programs, including: that Birchcliff remains committed to the
payment of its annual base dividend of $0.80 per common share,
maintaining capital discipline and generating free funds flow in
2023; the potential for weakness in summer natural gas prices; the
anticipated number of and timing of wells to be drilled and brought
on production; that the wells now anticipated to be brought on
production in Q4 2023 is expected to result in strong production in
Q4 2023 and Q1 2024, when commodity prices are forecast to be
significantly higher; that Birchcliff’s significant ownership and
operatorship of its assets gives it a strong competitive advantage,
providing it with the flexibility to actively manage its capital
program in response to changing economic conditions in order to
protect its strong financial position and base dividend; that the
Corporation will continue to closely monitor commodity prices and,
where deemed prudent, will make further adjustments to its 2023
capital program, giving consideration to increasing or decreasing
its rate of drilling and capital investment depending on commodity
prices; that Birchcliff is taking a conservative approach to
capital investment in 2023 as a result of the significant ongoing
volatility in natural gas prices; that the Pipeline System is
currently expected to operate under limited NGLs capacity for a
duration of 3 to 5 months; forecasts of annual average production,
production commodity mix, average expenses, adjusted funds flow,
F&D capital expenditures, free funds flow, annual base common
share dividend, excess free funds flow, total debt at year end and
natural gas market exposure in 2023; the expected impact of changes
in commodity prices and the CDN/US exchange rate on Birchcliff’s
forecast of free funds flow in 2023; that the forecast of total
debt at December 31, 2023 is expected to be comprised of any
amounts outstanding under the Credit Facilities plus accounts
payable and accrued liabilities and less cash, accounts receivable
and prepaid expenses and deposits at the end of the year; that the
Corporation may accelerate or defer its rate of capital investment
over the five-year period based on its outlook for commodity prices
in order to optimize its investment returns and protect its
dividend and balance sheet; that in the event commodity prices
remain weak continuing into 2024, Birchcliff currently expects that
it will keep its production relatively flat year-over-year, with
2024 annual average production forecast to be 78,500 boe/d
resulting from forecast 2024 F&D capital expenditures of $255
million; forecasts of the Corporation’s annual base common share
dividend, excess free funds flow and total debt for 2024; that over
the longer-term, Birchcliff remains committed to generating
substantial free funds flow and delivering significant returns to
shareholders, while achieving disciplined production growth to
fully utilize the Corporation’s existing processing and
transportation capacity; that cumulative free funds flow over the
five-year period is now forecast to be $1.3 billion; and that
Birchcliff is now targeting production growth of 11% from 2023 to
2027 with annual average production of 87,000 boe/d in 2027,
subject to commodity prices.
With respect to the forward‐looking statements
contained in this press release, assumptions have been made
regarding, among other things: the degree to which the
Corporation’s results of operations and financial condition will be
disrupted by circumstances attributable to the COVID-19 pandemic;
prevailing and future commodity prices and differentials, exchange
rates, interest rates, inflation rates, royalty rates and tax
rates; the state of the economy, financial markets and the
exploration, development and production business; the political
environment in which Birchcliff operates; the regulatory framework
regarding royalties, taxes, environmental, climate change and other
laws; the Corporation’s ability to comply with existing and future
laws; future cash flow, debt and dividend levels; future operating,
transportation, G&A and other expenses; Birchcliff’s ability to
access capital and obtain financing on acceptable terms; the timing
and amount of capital expenditures and the sources of funding for
capital expenditures and other activities; the sufficiency of
budgeted capital expenditures to carry out planned operations; the
successful and timely implementation of capital projects and the
timing, location and extent of future drilling and other
operations; results of operations; Birchcliff’s ability to continue
to develop its assets and obtain the anticipated benefits
therefrom; the performance of existing and future wells; reserves
volumes and Birchcliff’s ability to replace and expand reserves
through acquisition, development or exploration; the impact of
competition on Birchcliff; the availability of, demand for and cost
of labour, services and materials; the approval of the Board of
future dividends; the ability to obtain any necessary regulatory or
other approvals in a timely manner; the satisfaction by third
parties of their obligations to Birchcliff; the ability of
Birchcliff to secure adequate processing and transportation for its
products; Birchcliff’s ability to successfully market natural gas
and liquids; the results of the Corporation’s risk management and
market diversification activities; and Birchcliff’s natural gas
market exposure. In addition to the foregoing assumptions,
Birchcliff has made the following assumptions with respect to
certain forward-looking statements contained in this press
release:
-
With respect to Birchcliff’s 2023 guidance (as updated on March 15,
2023), such guidance is based on the commodity price, exchange rate
and other assumptions set forth under the heading “Reaffirmed Base
Dividend and Updated Outlook and Guidance”. In addition:
-
Birchcliff’s production guidance assumes that: the 2023 capital
program will be carried out as currently contemplated; no
unexpected outages occur in the infrastructure that Birchcliff
relies on to produce its wells and that any transportation service
curtailments or unplanned outages that occur will be short in
duration or otherwise insignificant; the construction of new
infrastructure meets timing and operational expectations; existing
wells continue to meet production expectations; and future wells
scheduled to come on production meet timing, production and capital
expenditure expectations.
-
Birchcliff’s forecast of capital expenditures assumes that the 2023
capital program will be carried out as currently contemplated and
excludes any net potential acquisitions and dispositions and the
capitalized portion of cash incentive payments that have not been
approved by the Board.
-
Birchcliff’s forecasts of adjusted funds flow and free funds flow
assume that: the 2023 capital program will be carried out as
currently contemplated and the level of capital spending for 2023
set forth herein is met; and the forecasts of production,
production commodity mix, expenses and natural gas market exposure
and the commodity price and exchange rate assumptions set forth
herein are met. Birchcliff’s forecast of adjusted funds flow takes
into account its physical and financial basis swap contracts
outstanding as at March 14, 2023 and excludes cash incentive
payments that have not been approved by the Board.
-
Birchcliff’s forecast of excess free funds flow assumes that: the
forecasts of adjusted funds flow and free funds flow are achieved;
and an annual base dividend of $0.80 per common share is paid
during 2023 and there are 266 million common shares outstanding,
with no changes to the base dividend rate and no special dividends
paid.
-
Birchcliff’s forecast of year end total debt assumes that: (i) the
forecasts of adjusted funds flow, free funds flow and excess free
funds flow are achieved, with the level of capital spending for
2023 met and the payment of an annual base dividend of $213
million; (ii) any free funds flow remaining after the payment of
dividends, asset retirement obligations and other amounts for
administrative assets, financing fees and capital lease obligations
is allocated towards debt reduction; (iii) there are no buybacks of
common shares during 2023; (iv) there are no significant
acquisitions or dispositions completed by the Corporation during
2023; (v) there are no equity issuances during 2023; and (vi) there
are no further proceeds received from the exercise of stock options
or performance warrants during 2023. The forecast of total debt
excludes cash incentive payments that have not been approved by the
Board.
-
Birchcliff’s forecast of its natural gas market exposure assumes:
(i) 175,000 GJ/d being sold on a physical basis at the Dawn price;
(ii) 152,500 MMBtu/d being contracted on a financial and physical
basis at an average fixed basis differential price between AECO 7A
and NYMEX HH of approximately US$1.23/MMBtu; and (iii) 27,500 GJ/d
being sold at Alliance on a physical basis at the AECO 5A price
plus a premium. Birchcliff’s natural gas market exposure takes into
account its physical and financial basis swap contracts outstanding
as at March 14, 2023.
-
With respect to Birchcliff’s five-year outlook (as updated on March
15, 2023), such outlook is based on the following commodity price
and exchange rate assumptions: an average WTI price of US$78.50/bbl
in 2023, US$74.00/bbl in 2024 and US$75.00/bbl in 2025 to 2027; an
average AECO price of CDN$3.00/GJ in 2023, CDN$3.30/GJ in 2024 and
CDN$4.10/GJ in 2025 to 2027; an average Dawn price of US$3.05/MMBtu
in 2023, US$3.55/MMBtu in 2024 and US$4.10/MMBtu in 2025 to 2027;
an average NYMEX HH price of US$3.50/MMBtu in 2023, US$3.70/MMBtu
in 2024 and US$4.20/MMBtu in 2025 to 2027; and an average exchange
rate (CDN$ to US$1) of 1.35 in 2023 and 2024 and 1.34 in 2025 to
2027. In addition:
-
Birchcliff’s production forecasts assume that: the Corporation’s
capital programs will be carried out as currently contemplated; no
unexpected outages occur in the infrastructure that Birchcliff
relies on to produce its wells and that any transportation service
curtailments or unplanned outages that occur will be short in
duration or otherwise insignificant; the construction of new
infrastructure meets timing and operational expectations; existing
wells continue to meet production expectations; and future wells
scheduled to come on production meet timing, production and capital
expenditure expectations.
-
Birchcliff’s forecasts of F&D capital expenditures assume that
the Corporation’s capital programs will be carried out as currently
contemplated and exclude any net potential acquisitions and
dispositions and the capitalized portion of cash incentive payments
that have not been approved by the Board. The five-year outlook
also assumes that all wells will be brought on production over the
five-year period as currently forecast, which forecast is subject
to similar assumptions regarding wells drilled and brought on
production as set forth herein. The amount and allocation of
capital expenditures for exploration and development activities by
area and the number and types of wells to be drilled and brought on
production is dependent upon results achieved and is subject to
review and modification by management on an ongoing basis
throughout the year. Actual spending may vary due to a variety of
factors, including commodity prices, economic conditions, results
of operations and costs of labour, services and materials.
-
Birchcliff’s forecast of excess free funds flow for 2024 assumes
that: the forecasts of adjusted funds flow and free funds flow in
2023 and 2024 are achieved using the mid-point Birchcliff’s 2023
free funds flow guidance; and an annual base dividend of $0.80 per
common share is paid during 2024 and there are 266 million common
shares outstanding, with no changes to the base dividend rate and
no special dividends paid.
-
Birchcliff’s forecast of year end 2024 total debt is expected to be
comprised of any amounts outstanding under the Credit Facilities
plus accounts payable and accrued liabilities and less cash,
accounts receivable, prepaid expenses and deposits at the end of
the year, and assumes that: (i) the forecasts of adjusted funds
flow, free funds flow and excess free funds flow are achieved in
2023 and 2024 using the mid-point Birchcliff’s 2023 free funds flow
guidance, with the level of capital spending for 2023 and 2024 met
and the payment of an annual base dividend of $213 million in 2023
and 2024; (ii) any free funds flow remaining after the payment of
dividends, asset retirement obligations and other amounts for
administrative assets, financing fees and capital lease obligations
is allocated towards debt reduction; (iii) there are no buybacks of
common shares during 2023 or 2024; (iv) there are no significant
acquisitions or dispositions completed by the Corporation during
2023 or 2024; (v) there are no equity issuances during 2023 or
2024; and (vi) there are no further proceeds received from the
exercise of stock options or performance warrants during 2023 or
2024. The forecast of total debt excludes cash incentive payments
that have not been approved by the Board.
-
Birchcliff’s forecast of cumulative free funds flow assumes: that
the Corporation’s capital programs will be carried out as currently
contemplated and the level of capital spending for each year is
met; and the forecasts of production, production commodity mix,
expenses and natural gas market exposure and the commodity price
and exchange rate assumptions set forth herein are met.
Birchcliff’s forecasts of adjusted funds flow take into account its
physical and financial basis swap contracts outstanding as at March
14, 2023 and exclude cash incentive payments that have not been
approved by the Board. The Corporation has used the mid-point of
its 2023 guidance for free funds flow and total debt at year end in
determining the cumulative free funds flow at year end for 2024 to
2027.
-
With respect to statements of future wells to be drilled and
brought on production, such statements assume: the continuing
validity of the geological and other technical interpretations
performed by Birchcliff’s technical staff, which indicate that
commercially economic volumes can be recovered from Birchcliff’s
lands as a result of drilling future wells; and that commodity
prices and general economic conditions will warrant proceeding with
the drilling of such wells.
Birchcliff’s actual results, performance or
achievements could differ materially from those anticipated in the
forward-looking statements as a result of both known and unknown
risks and uncertainties including, but not limited to: the risks
posed by pandemics (including COVID-19), epidemics and global
conflict (including the Russian invasion of Ukraine) and their
impacts on supply and demand and commodity prices; actions taken by
OPEC and other major producers of crude oil and the impact such
actions may have on supply and demand and commodity prices; the
uncertainty of estimates and projections relating to production,
revenue, costs, expenses and reserves; the risk that any of the
Corporation’s material assumptions prove to be materially
inaccurate (including the Corporation’s commodity price and
exchange rate assumptions for 2023 to 2027); general economic,
market and business conditions which will, among other things,
impact the demand for and market prices of Birchcliff’s products
and Birchcliff’s access to capital; volatility of crude oil and
natural gas prices; risks associated with increasing costs, whether
due to high inflation rates, supply chain disruptions or other
factors; fluctuations in exchange and interest rates; stock market
volatility; loss of market demand; an inability to access
sufficient capital from internal and external sources on terms
acceptable to the Corporation; risks associated with Birchcliff’s
Credit Facilities, including a failure to comply with covenants
under the agreement governing the Credit Facilities and the risk
that the borrowing base limit may be redetermined; fluctuations in
the costs of borrowing; operational risks and liabilities inherent
in oil and natural gas operations; the occurrence of unexpected
events such as fires, severe weather, explosions, blow-outs,
equipment failures, transportation incidents and other similar
events; an inability to access sufficient water or other fluids
needed for operations; uncertainty that development activities in
connection with Birchcliff’s assets will be economic; an inability
to access or implement some or all of the technology necessary to
operate its assets and achieve expected future results; the
accuracy of estimates of reserves, future net revenue and
production levels; geological, technical, drilling, construction
and processing problems; uncertainty of geological and technical
data; horizontal drilling and completions techniques and the
failure of drilling results to meet expectations for reserves or
production; uncertainties related to Birchcliff’s future potential
drilling locations; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the
accuracy of cost estimates and variances in Birchcliff’s actual
costs and economic returns from those anticipated; incorrect
assessments of the value of acquisitions and exploration and
development programs; changes to the regulatory framework in the
locations where the Corporation operates, including changes to tax
laws, Crown royalty rates, environmental laws, climate change laws,
carbon tax regimes, incentive programs and other regulations that
affect the oil and natural gas industry; political uncertainty and
uncertainty associated with government policy changes; actions by
government authorities; an inability of the Corporation to comply
with existing and future laws and the cost of compliance with such
laws; dependence on facilities, gathering lines and pipelines;
uncertainties and risks associated with pipeline restrictions and
outages to third-party infrastructure that could cause disruptions
to production; the lack of available pipeline capacity and an
inability to secure adequate and cost-effective processing and
transportation for Birchcliff’s products; an inability to satisfy
obligations under Birchcliff’s firm marketing and transportation
arrangements; shortages in equipment and skilled personnel; the
absence or loss of key employees; competition for, among other
things, capital, acquisitions of reserves, undeveloped lands,
equipment and skilled personnel; management of Birchcliff’s growth;
environmental and climate change risks, claims and liabilities;
potential litigation; default under or breach of agreements by
counterparties and potential enforceability issues in contracts;
claims by Indigenous peoples; the reassessment by taxing or
regulatory authorities of the Corporation’s prior transactions and
filings; unforeseen title defects; third-party claims regarding the
Corporation’s right to use technology and equipment; uncertainties
associated with the outcome of litigation or other proceedings
involving Birchcliff; uncertainties associated with counterparty
credit risk; risks associated with Birchcliff’s risk management and
market diversification activities; risks associated with the
declaration and payment of future dividends, including the
discretion of the Board to declare dividends and change the
Corporation’s dividend policy and the risk that the amount of
dividends may be less than currently forecast; the failure to
obtain any required approvals in a timely manner or at all; the
failure to complete or realize the anticipated benefits of
acquisitions and dispositions and the risk of unforeseen
difficulties in integrating acquired assets into Birchcliff’s
operations; negative public perception of the oil and natural gas
industry and fossil fuels; the Corporation’s reliance on hydraulic
fracturing; market competition, including from alternative energy
sources; changing demand for petroleum products; the availability
of insurance and the risk that certain losses may not be insured;
breaches or failure of information systems and security (including
risks associated with cyber-attacks); risks associated with the
ownership of the Corporation’s securities; and the accuracy of the
Corporation’s accounting estimates and judgments.
The declaration and payment of any future
dividends are subject to the discretion of the Board and may not be
approved or may vary depending on a variety of factors and
conditions existing from time to time, including commodity prices,
free funds flow, current and forecast commodity prices,
fluctuations in working capital, financial requirements of
Birchcliff, applicable laws (including solvency tests under the
Business Corporations Act (Alberta) for the declaration and payment
of dividends) and other factors beyond Birchcliff’s control. The
payment of dividends to shareholders is not assured or guaranteed
and dividends may be reduced or suspended entirely. In addition to
the foregoing, the Corporation’s ability to pay dividends now or in
the future may be limited by covenants contained in the agreements
governing any indebtedness that the Corporation has incurred or may
incur in the future, including the terms of the Credit Facilities.
The agreement governing the Credit Facilities provides that
Birchcliff is not permitted to make any distribution (which
includes dividends) at any time when an event of default exists or
would reasonably be expected to exist upon making such
distribution, unless such event of default arose subsequent to the
ordinary course declaration of the applicable distribution.
Readers are cautioned that the foregoing lists
of factors are not exhaustive. Additional information on these and
other risk factors that could affect results of operations,
financial performance or financial results are included in the AIF
under the heading “Risk Factors” and in other reports filed with
Canadian securities regulatory authorities.
This press release contains information that may
constitute future-orientated financial information or financial
outlook information (collectively, “FOFI”) about
Birchcliff’s prospective financial performance, financial position
or cash flows, all of which is subject to the same assumptions,
risk factors, limitations and qualifications as set forth above.
Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of
preparation, may prove to be imprecise or inaccurate and, as such,
undue reliance should not be placed on FOFI. Birchcliff’s actual
results, performance and achievements could differ materially from
those expressed in, or implied by, FOFI. Birchcliff has included
FOFI in order to provide readers with a more complete perspective
on Birchcliff’s future operations and management’s current
expectations relating to Birchcliff’s future performance. Readers
are cautioned that such information may not be appropriate for
other purposes. FOFI contained herein was made as of the date of
this press release. Unless required by applicable laws, Birchcliff
does not undertake any obligation to publicly update or revise any
FOFI statements, whether as a result of new information, future
events or otherwise.
Management has included the above summary of
assumptions and risks related to forward-looking statements
provided in this press release in order to provide readers with a
more complete perspective on Birchcliff’s future operations and
management’s current expectations relating to Birchcliff’s future
performance. Readers are cautioned that this information may not be
appropriate for other purposes.
The forward-looking statements contained in this
press release are expressly qualified by the foregoing cautionary
statements. The forward-looking statements contained herein are
made as of the date of this press release. Unless required by
applicable laws, Birchcliff does not undertake any obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
ABOUT BIRCHCLIFF:
Birchcliff is a Calgary, Alberta based
intermediate oil and natural gas company with operations focused on
the Montney/Doig Resource Play in Alberta. Birchcliff’s common
shares are listed for trading on the Toronto Stock Exchange under
the symbol “BIR”.
For further
information, please contact: |
Birchcliff Energy Ltd.Suite 1000, 600 – 3rd Avenue
S.W. Calgary, Alberta T2P 0G5Telephone: (403) 261-6401Email:
info@birchcliffenergy.comwww.birchcliffenergy.com |
|
Jeff Tonken –
Chief Executive OfficerChris Carlsen – President
and Chief Operating OfficerBruno Geremia –
Executive Vice President and Chief Financial Officer |
Birchcliff Energy (TSX:BIR)
Historical Stock Chart
From Apr 2024 to May 2024
Birchcliff Energy (TSX:BIR)
Historical Stock Chart
From May 2023 to May 2024