Birchcliff Energy (BIR) Q4 2024 earnings summary

Executive summary

• Achieved annual average production of 76,695 boe/d in 2024, a 1% increase year-over-year, with 82% natural gas and 18% liquids.

• Generated adjusted funds flow of $236.8 million and returned $107.8 million to shareholders via dividends.

• Brought 27 new wells on production, adding 34.1 MMboe of PDP reserves, highlighting asset quality.

• Net income to common shareholders was $56.1 million for 2024, up from $9.8 million in 2023, driven by unrealized gains on financial instruments.

• Ended 2024 with total debt of $535.6 million, a 40% increase from the prior year, but maintained significant unused credit capacity.

Financial highlights

• Petroleum and natural gas revenue was $586.9 million in 2024, down from $740.4 million in 2023.

• Adjusted funds flow per share was $0.88, a 23% decrease year-over-year; cash flow from operating activities was $203.7 million, down 36%.

• Net income per share was $0.21, up from $0.04 in 2023, due to a $98.6 million unrealized mark-to-market gain on financial instruments.

• F&D capital expenditures totaled $273.1 million, exceeding guidance, with 29 wells drilled and 27 brought on production.

• Dividends paid totaled $107.8 million, with 271.3 million basic shares outstanding at year-end.

Outlook and guidance

• 2025 strategy focuses on capital efficiency, cost reduction, and flexible capital deployment amid expected commodity price volatility.

• Approved a disciplined F&D capital budget of $260–$300 million for 2025, targeting strong production from new wells.

• Ongoing market diversification strategy aims to mitigate risks from potential U.S. and Canadian tariffs and LNG Canada start-up.