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/Miss | Actual | Consensus Estimate |
Q2 Net Income |
| -C$13.90 mln |
|
Q2 Capex |
| C$73.30 mln |
|
Q2 Operating Cash Flow |
| C$109.60 mln |
|
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 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: ID:nGNX9R4lJY