(MENAFN- GlobeNewsWire - Nasdaq) CALGARY, Alberta, Nov. 14, 2023 (GLOBE NEWSWIRE) -- Birchcliff Energy Ltd. (“ Birchcliff ” or the“ Corporation ”) (TSX: BIR) is pleased to announce its Q3 2023 financial and operational results and its preliminary guidance for 2024. Birchcliff is also pleased to announce that its board of directors (the“ Board ”) has declared a quarterly cash dividend of $0.20 per common share for the quarter ending December 31, 2023.
“In Q3 2023, we generated adjusted funds flow(1) of $72.2 million and free funds flow(1) of $5.5 million, with average production of 74,143 boe/d. In addition, we returned an aggregate of $53.3 million to shareholders in Q3 2023 through our base common share dividend. Since September 30, 2022, Birchcliff has returned an aggregate of $218.5 million to shareholders (or $0.82 per basic common share) through common share dividends,” commented Jeff Tonken, Chief Executive Officer of Birchcliff.“Earlier in the year, we made the strategic decision to defer the drilling of nine wells from Q2 2023 to Q3 2023, which resulted in no new wells being brought on production in Q3 2023. These nine wells were recently brought on production, allowing us to capture the anticipated strength in natural gas pricing that is typically seen in winter months, as well as setting us up for stronger average production in Q4 2023 and Q1 2024.”
“We anticipate that our adjusted funds flow will be sufficient to fully fund our F&D capital expenditures and common share dividend payments in 2024 based on our preliminary budgeting process and current commodity price outlook. We are targeting F&D capital expenditures of $260 million to $280 million in respect of 2024 and annual average production of 77,000 to 79,000 boe/d(2). We expect to generate adjusted funds flow of approximately $500 million and free funds flow of approximately $240 million to $260 million in 2024. As part of Birchcliff's $260 million to $280 million capital program for 2024, we expect to spend approximately $20 million in Q4 2023 to commence the drilling of five wells in Pouce Coupe, which will allow us to maximize production during the winter months, and $240 million to $260 million in 2024. We are continuing to evolve our plans for 2024 and expect to announce the details of our formal 2024 capital budget and updated five-year outlook for 2024 to 2028 on January 17, 2024.”(3)
Q3 2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS
Achieved quarterly average production of 74,143 boe/d. Generated quarterly adjusted funds flow of $72.2 million, or $0.27 per basic common share(4), and quarterly free funds flow of $5.5 million, or $0.02 per basic common share(4). Generated cash flow from operating activities of $67.8 million. Reported quarterly net income to common shareholders of $15.1 million, or $0.06 per basic common share. Realized an operating expense of $3.93/boe. F&D capital expenditures totalled $66.7 million. Total debt(5) at September 30, 2023 was $327.7 million. Returned $53.3 million to shareholders through the Corporation's base common share dividend.
Birchcliff's unaudited interim condensed financial statements for the three and nine months ended September 30, 2023 and related management's discussion and analysis will be available on its website at and on SEDAR+ at .
(1) Non-GAAP financial measure. See“Non-GAAP and Other Financial Measures”.
(2) As compared to $255 million of F&D capital expenditures and 78,000 boe/d of production, as set out in the Corporation's five-year outlook for 2023 to 2027. See the Corporation's press release dated May 10, 2023.
(3) See“Outlook and Guidance – Preliminary 2024 Guidance” for further information regarding Birchcliff's preliminary 2024 guidance and its commodity price and exchange rate assumptions for such guidance.
(4) Non-GAAP ratio. See“Non-GAAP and Other Financial Measures”.
(5) Capital management measure. See“Non-GAAP and Other Financial Measures”.
DECLARATION OF Q4 2023 QUARTERLY DIVIDEND
The Board has declared a quarterly cash dividend of $0.20 per common share for the quarter ending December 31, 2023. The dividend will be payable on December 29, 2023 to shareholders of record at the close of business on December 15, 2023. The ex-dividend date is December 14, 2023. The dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). This is the fifth consecutive quarter in which Birchcliff's Board has declared a cash dividend of $0.20 per common share.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws.
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