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Canada's Birchcliff Energy Q2 production up 1%

ReutersAug 13, 2025 8:09 PM


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

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