Chris Carlsen, Birchcliff's President and Chief Executive Officer, commented: "2025 was an excellent year for Birchcliff, driven by the successful and disciplined execution of our capital program and our continued focus on efficiency and driving down costs. Year-over-year, we grew our annual average production by 4% to 80,086 boe/d, the highest in company history, and reduced our per unit operating costs by 11% to $2.88/boe. We generated adjusted funds flow(1) of $422.8 million and free funds flow(1) of $116.9 million in 2025 and further strengthened our balance sheet, reducing our total debt(2) by 14% year-over-year to $459.9 million at December 31, 2025.
In 2025, we delivered all-in PDP F&D costs(3) of $10.15/boe (a 12% improvement from 2024), a profitable PDP F&D operating netback recycle ratio(4) of 1.4x (a 40% improvement from 2024) and a reserves life index(3) of 7.2 years on our PDP reserves. At December 31, 2025, our Elmworth asset, consisting of approximately 145 net sections of Montney lands, remains largely unbooked on a reserves basis, providing us with significant drilling inventory and a large potential future growth area.
For 2026, we remain focused on profitable production growth by fully utilizing our existing infrastructure, strengthening our balance sheet and paying a sustainable base dividend. We look forward to reporting on our progress throughout the year as we execute on our strategy and we thank our employees, board of directors and shareholders for their ongoing support."
2025 UNAUDITED FINANCIAL AND OPERATIONAL HIGHLIGHTS
Delivered average production of 80,086 boe/d (82% natural gas and 18% liquids) in 2025, a 4% increase from 2024, and 83,028 boe/d (83% natural gas and 17% liquids) in Q4 2025, a 7% increase from Q4 2024.
Generated adjusted funds flow of $422.8 million ($1.55 per basic common share(4)) in 2025, a 79% increase from 2024, and $116.7 million ($0.43 per basic common share) in Q4 2025, a 63% increase from Q4 2024.
Cash flow from operating activities was $407.7 million in 2025, a 100% increase from 2024, and $93.5 million in Q4 2025, a 105% increase from Q4 2024.
Generated free funds flow of $116.9 million ($0.43 per basic common share(4)) in 2025, a 422% increase from 2024, and $67.4 million ($0.25 per basic common share) in Q4 2025, a 398% increase from Q4 2024.
Reported net income to common shareholders of $64.9 million ($0.24 per basic common share) in 2025, a 16% increase from 2024, and $27.2 million ($0.10 per basic common share) in Q4 2025, a 23% decrease from Q4 2024.
Reduced total debt during the year, exiting 2025 with total debt of $459.9 million, a 14% decrease from year-end 2024. At December 31, 2025, Birchcliff's total debt to adjusted funds flow ratio(4) was 1.1x as compared to 2.3x at December 31, 2024.
Birchcliff continued to benefit from its natural gas market diversification, with approximately 75% and 72% of its natural gas production in 2025 and Q4 2025, respectively, realizing higher U.S. pricing at the Dawn and NYMEX HH markets compared to AECO. This market diversification contributed to an effective average realized natural gas sales price(4) of $4.10/Mcf and $4.34/Mcf in 2025 and Q4 2025, respectively, which represents a 125% and 80% premium to the average benchmark AECO 5A price, adjusted for Birchcliff's heat premium.
Brought 29 (29.0 net) wells on production in 2025, with F&D capital expenditures(5) of $305.9 million in 2025 and $49.3 million in Q4 2025.
2025 RESERVES HIGHLIGHTS(6)
Birchcliff added an aggregate of 30.1 MMboe of PDP reserves on an F&D basis in 2025, after adding back 2025 actual production of 29.2 MMboe.(7) Birchcliff's PDP reserves totalled 218.0 MMboe at December 31, 2025.
Birchcliff delivered PDP F&D costs of $10.15/boe, a PDP F&D operating netback recycle ratio of 1.4x and a PDP reserves replacement ratio(3) of 103% on its aggregate PDP reserves additions.
At December 31, 2025, the net present value of future net revenue (before income taxes, discounted at 10%) was $2.3 billion for Birchcliff's PDP reserves, $4.4 billion for its proved reserves and $5.6 billion for its proved plus probable reserves.
The net asset value per common share(4) of Birchcliff's PDP, proved and proved plus probable reserves at December 31, 2025 was $6.72, $13.83 and $18.13, respectively. Birchcliff believes that there is significant intrinsic shareholder value embedded in its asset base, including the undeveloped Elmworth asset, that is not reflected in its current share price.
RLI(3) at December 31, 2025 of 7.2 years on a PDP basis, 21.4 years on a proved basis and 31.4 years on a proved plus probable basis. Birchcliff's RLI does not include any significant reserves associated with its Elmworth growth asset as this asset is largely unbooked.
Birchcliff anticipates filing its annual information form and audited financial statements and related management's discussion and analysis for the year ended December 31, 2025 on March 11, 2026.
APPOINTMENT OF CHRIS CARLSEN AS DIRECTOR
Birchcliff is pleased to announce that Chris Carlsen has been appointed to the board of directors of the Corporation (the "Board") effective today.
Jeff Tonken, Chairman of the Board, commented: "On behalf of the Board, we are excited to have Chris Carlsen, our President and Chief Executive Officer, join the Board. For over 17 years, including the past two years as Chief Executive Officer, Chris has demonstrated exceptional leadership and dedication to the organization with a focus on increasing shareholder value. His deep understanding of the business, combined with his strategic vision, will further enhance Board deliberations and drive additional value for Birchcliff."
____________________(1) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures". (2) Capital management measure. See "Non-GAAP and Other Financial Measures". (3) See "Advisories, Oil and Gas Metrics". (4) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures".(5) See "Advisories, F&D Capital Expenditures".(6) The reserves data set forth herein is based on an independent evaluation conducted by Deloitte LLP ("Deloitte"), the Corporation's independent qualified reserves evaluator, effective December 31, 2025. See "2025 Year-End Reserves" and "Presentation of Oil and Gas Reserves".(7) Consists of 566.1 Mbbls of light oil, 1,960.8 Mbbls of condensate, 2,614.1 Mbbls of NGLs and 144,543.7 MMcf of natural gas.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. For further information regarding the forward-looking statements and forward-looking information contained herein, see "Advisories, Forward-Looking Statements". With respect to the disclosure of Birchcliff's reserves and related reserves metrics contained in this press release, see "2025 Year-End Reserves", "Presentation of Oil and Gas Reserves" and "Advisories, Oil and Gas Metrics". With respect to the disclosure of Birchcliff's production contained in this press release, production volumes have been disclosed on a "gross" basis as such term is defined in National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). For further information regarding the disclosure of Birchcliff's production contained herein, see "Advisories, Production". In addition, this press release uses various "non-GAAP financial measures", "non-GAAP ratios" 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".
2025 UNAUDITED FINANCIAL AND OPERATIONAL SUMMARY
Three months ended
Twelve months ended
December 31
December 31
2025
2024
2025
2024
OPERATING
Average production
Light oil (bbls/d)
1,375
1,993
1,551
2,017
Condensate (bbls/d)
5,795
4,310
5,372
4,425
NGLs (bbls/d)
7,197
7,748
7,162
7,080
Natural gas (Mcf/d)
411,966
381,433
396,010
379,040
Total (boe/d)
83,028
77,623
80,086
76,695
Average realized sales prices (CDN$)
Light oil (per bbl)
77.80
95.18
86.25
98.90
Condensate (per bbl)
77.18
95.79
85.74
99.66
NGLs (per bbl)
21.88
26.20
22.71
26.37
Natural gas (per Mcf)
3.40
2.27
3.00
2.05
Total (per boe)
25.47
21.53
24.28
20.90
NETBACK AND COST ($/boe)
Petroleum and natural gas revenue
25.47
21.53
24.28
20.91
Royalty expense
(0.70)
(1.26)
(1.06)
(1.41)
Operating expense
(2.93)
(2.91)
(2.88)
(3.24)
Transportation and other expense(1)
(5.64)
(5.26)
(5.68)
(5.24)
Operating netback(1)
16.20
12.10
14.66
11.02
G&A expense, net
(1.62)
(2.00)
(1.36)
(1.45)
Interest expense
(0.97)
(1.40)
(1.16)
(1.31)
Lease interest expense
(0.28)
(0.33)
(0.30)
(0.16)
Realized gain on financial instruments(2)
1.94
1.68
2.62
0.33
Other cash income
0.01
0.01
-
0.01
Adjusted funds flow(1)
15.28
10.06
14.46
8.44
Depletion and depreciation expense
(8.82)
(8.96)
(8.94)
(8.79)
Unrealized gain (loss) on financial instruments(2)
(1.30)
5.95
(2.23)
3.51
Other expenses(3)
(0.51)
(0.75)
(0.44)
(0.52)
Deferred income tax expense
(1.09)
(1.37)
(0.63)
(0.64)
Net income to common shareholders
3.56
4.93
2.22
2.00
FINANCIAL
Petroleum and natural gas revenue ($000s)
194,529
153,741
709,863
586,856
Cash flow from operating activities ($000s)
93,485
45,641
407,705
203,710
Adjusted funds flow ($000s)(4)
116,737
71,838
422,766
236,794
Per basic common share ($)(1)
0.43
0.27
1.55
0.88
Free funds flow ($000s)(4)
67,423
13,528
116,875
(36,290)
Per basic common share ($)(1)
0.25
0.05
0.43
(0.13)
Net income to common shareholders ($000s)
27,167
35,216
64,874
56,100
Per basic common share ($)
0.10
0.13
0.24
0.21
End of period basic common shares (000s)
274,797
271,304
274,797
271,304
Weighted average basic common shares (000s)
273,802
270,185
272,721
269,081
Dividends on common shares ($000s)
8,241
27,126
32,764
107,833
F&D capital expenditures ($000s)(5)
49,314
58,310
305,891
273,084
Total capital expenditures ($000s)(4)
49,696
66,673
307,777
282,745
Revolving term credit facilities ($000s)
508,340
566,587
508,340
566,857
Total debt ($000s)(6)
459,948
535,557
459,948
535,557
(1) Non-GAAP ratio. See "Non-GAAP and Other Financial Measures".(2) Birchcliff's financial instruments consist of its NYMEX HH/AECO 7A basis swap contracts.(3) Includes non-cash items such as compensation, accretion, amortization of deferred financing fees and other gains and losses.(4) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures".(5) See "Advisories, F&D Capital Expenditures".(6) Capital management measure. See "Non-GAAP and Other Financial Measures".
FULL-YEAR AND Q4 2025 UNAUDITED FINANCIAL AND OPERATIONAL RESULTS
Production
Production averaged 80,086 boe/d in 2025, a 4% increase from 2024 and exceeding the high end of Birchcliff's guidance range of 79,000 to 80,000 boe/d.
Production averaged 83,028 boe/d in Q4 2025, a 7% increase from Q4 2024 and exceeding Birchcliff's guidance of 81,500 boe/d.
The increases were primarily due to the outperformance of the Corporation's existing base production and incremental production from new Montney wells brought on production since 2024, partially offset by natural production declines.
Liquids accounted for 18% of Birchcliff's total production in both 2025 and 2024, which was in line with Birchcliff's guidance of 18%.
In Q4 2025, liquids accounted for 17% of Birchcliff's total production as compared to 18% in Q4 2024.
Adjusted Funds Flow and Cash Flow From Operating Activities
Adjusted funds flow was $422.8 million in 2025, or $1.55 per basic common share, a 79% and 76% increase, respectively, from 2024 and exceeding Birchcliff's guidance of $415 million.
Adjusted funds flow was $116.7 million in Q4 2025, or $0.43 per basic common share, a 63% and 59% increase, respectively, from Q4 2024.
Cash flow from operating activities was $407.7 million in 2025, a 100% increase from 2024.
Cash flow from operating activities was $93.5 million in Q4 2025, a 105% increase from Q4 2024.
The increases were primarily due to higher natural gas revenue, which was largely the result of higher production and a 46% and 50% increase in the average realized sales price Birchcliff received for its natural gas production in 2025 and Q4 2025, respectively, as compared to 2024. Adjusted funds flow and cash flow from operating activities were also positively impacted by higher realized gains on financial instruments of $76.5 million and $14.8 million in 2025 and Q4 2025, respectively, as compared to $9.3 million and $12.0 million in 2024 and Q4 2024, respectively.
Net Income to Common Shareholders
Net income to common shareholders was $64.9 million in 2025, or $0.24 per basic common share, a 16% and 14% increase, respectively, from 2024. The increases were primarily due to higher adjusted funds flow, partially offset by an unrealized mark-to-market loss on financial instruments of $65.0 million in 2025 as compared to an unrealized mark-to-market gain on financial instruments of $98.6 million in 2024.
Net income to common shareholders was $27.2 million in Q4 2025, or $0.10 per basic common share, both of which decreased by 23% from Q4 2024. The decreases were primarily due to an unrealized mark-to-market loss on financial instruments of $9.9 million in Q4 2025 as compared to an unrealized mark-to-market gain of $42.5 million in Q4 2024, partially offset by higher adjusted funds flow.
Debt and Credit Facilities
Total debt at December 31, 2025 was $459.9 million, a 14% decrease from December 31, 2024 and within Birchcliff's guidance range of $455 million to $465 million.
At December 31, 2025, Birchcliff had a balance outstanding under its extendible revolving credit facilities (the "Credit Facilities") of $512.5 million (December 31, 2024: $570.9 million) from available Credit Facilities of $850.0 million (December 31, 2024: $850.0 million), leaving the Corporation with $337.5 million (40%) of unutilized credit capacity after adjusting for outstanding letters of credit and unamortized deferred financing fees.
Natural Gas Market Diversification
Birchcliff's physical natural gas sales exposure consists of the AECO, Dawn and Alliance markets. In addition, the Corporation has various financial instruments outstanding that provide it with exposure to NYMEX HH pricing.
Birchcliff continued to benefit from its natural gas market diversification in Q4 2025, with approximately 72% of its natural gas production in the quarter realizing higher U.S. pricing at the Dawn and NYMEX HH markets compared to AECO. This market diversification contributed to an effective average realized natural gas sales price of $4.34/Mcf in Q4 2025, which represents an 80% premium to the average benchmark AECO 5A price in the quarter, adjusted for Birchcliff's heat premium.
The following table sets forth Birchcliff's effective sales, production and average realized sales price for its natural gas and liquids for Q4 2025, after taking into account the Corporation's financial instruments:
Three months ended December 31, 2025
Effectivesales(CDN$000s)
Percentage of total sales(%)
Effectiveproduction(per day)
Percentage oftotal natural gas production(%)
Percentage oftotal corporate production(%)
Effective average realizedsales price(CDN$)
Market
AECO(1)(2)
25,725
11
114,027 Mcf
28
23
2.45/Mcf
Dawn(3)
73,232
32
162,049 Mcf
39
33
4.91/Mcf
NYMEX HH(1)(4)
65,464
29
135,890 Mcf
33
27
5.24/Mcf
Total natural gas(1)
164,421
72
411,966 Mcf
100
83
4.34/Mcf
Light oil
9,838
4
1,375 bbls
2
77.80/bbl
Condensate
41,153
18
5,795 bbls
7
77.18/bbl
NGLs
14,488
6
7,197 bbls
8
21.88/bbl
Total liquids
65,479
28
14,367 bbls
17
49.54/bbl
Total corporate(1)
229,900
100
83,028 boe
100
30.10/boe
(1) Effective sales and effective average realized sales price on a total natural gas and total corporate basis and for the AECO and NYMEX HH markets are non-GAAP financial measures and non-GAAP ratios, respectively. See "Non-GAAP and Other Financial Measures".(2) Birchcliff has short-term physical sales agreements with third-party marketers to sell and deliver into the Alliance pipeline system. All of Birchcliff's short-term physical Alliance sales and production during Q4 2025 received AECO adjusted pricing and have therefore been included as effective sales and production in the AECO market.(3) Birchcliff has agreements for the firm service transportation of an aggregate of 175,000 GJ/d of natural gas on TransCanada PipeLines' Canadian Mainline, whereby natural gas is transported to the Dawn trading hub in Southern Ontario.(4) NYMEX HH effective sales and production include financial NYMEX HH/AECO 7A basis swap contracts for an aggregate of 147,500 MMBtu/d at an average contract price of NYMEX HH less US$1.088/MMBtu during Q4 2025.Birchcliff's effective average realized sales price for NYMEX HH of CDN$5.24/Mcf (US$3.46/MMBtu) was determined on a gross basis before giving effect to the average NYMEX HH/AECO 7A fixed contract basis differential price of CDN$1.64/Mcf (US$1.088/MMBtu) and includes any realized gains and losses on financial NYMEX HH/AECO 7A basis swap contracts during Q4 2025.After giving effect to the NYMEX HH/AECO 7A fixed contract basis differential price and including any realized gains and losses on financial NYMEX HH/AECO 7A basis swap contracts during Q4 2025, Birchcliff's effective average realized net sales price for NYMEX HH was CDN$3.60/Mcf (US$2.37/MMBtu) in Q4 2025.
The following table sets forth Birchcliff's physical sales, production, average realized sales price, transportation costs and natural gas sales netback by natural gas market for the periods indicated, before taking into account the Corporation's financial instruments:
Three months ended December 31, 2025
Natural gas market
Natural gassales(CDN$000s)
Percentage of natural gas sales(%)
Natural gas production(Mcf/d)
Percentage of natural gas production(%)
Average realizednatural gas salesprice(CDN$/Mcf)
Natural gas transportation costs(1)(CDN$/Mcf)
Natural gas sales netback(2)(CDN$/Mcf)
AECO
54,737
42
245,698
60
2.44
0.42
2.02
Dawn
73,232
57
162,049
39
4.91
1.48
3.43
Alliance(3)
1,074
1
4,219
1
2.77
-
2.77
Total
129,043
100
411,966
100
3.40
0.84
2.56
Three months ended December 31, 2024
Natural gas market
Natural gassales(CDN$000s)
Percentage of natural gas sales(%)
Natural gas production(Mcf/d)
Percentage of natural gas production(%)
Average realizednatural gas salesprice(CDN$/Mcf)
Natural gas transportation costs(1)(CDN$/Mcf)
Natural gas sales netback(2)(CDN$/Mcf)
AECO
31,027
39
216,321
57
1.57
0.38
1.19
Dawn
48,281
60
162,555
42
3.23
1.43
1.80
Alliance(3)
307
1
2,557
1
1.30
-
1.30
Total
79,615
100
381,433
100
2.27
0.83
1.44
(1) Reflects costs to transport natural gas from the field receipt point to the delivery sales trading hub.(2) Natural gas sales netback denotes the average realized natural gas sales price less natural gas transportation costs.(3) Birchcliff has short-term physical sales agreements with third-party marketers to sell and deliver into the Alliance pipeline system. Alliance sales are indexed to the AECO 5A benchmark index price and are recorded net of transportation tolls.
Capital Activities and Investment
In 2025, Birchcliff brought a total of 29 (29.0 net) wells on production from five pads (four in Pouce Coupe and one in Gordondale).
F&D capital expenditures were $305.9 million in 2025, as compared to Birchcliff's guidance of $290 million to $300 million. Birchcliff's F&D capital expenditures in Q4 2025 included the capitalized portion of cash incentive payments and strategic mineral land acquisitions that further strengthened the Corporation's asset base.
Through disciplined execution and an unrelenting focus on efficiency, Birchcliff reduced its average well cost(8) by approximately 11% year-over-year. The efficiencies and cost savings achieved by Birchcliff in 2025 enabled it to drill three additional wells, which were brought on production in Q4 2025, and drill four additional wells and advance other activities in preparation for its 2026 capital program.
____________________(8) On a drill, case, complete, equip and tie-in basis.
OPERATIONAL UPDATE
Greater Pouce
The wells on the Corporation's 6-well 02-09 pad were turned over to production through Birchcliff's permanent facilities in February 2026. This pad was drilled in the Lower Montney and targeted high-rate natural gas wells.
In January 2026, Birchcliff completed the drilling of its 4-well 13-21 pad. Completions operations are currently underway and the wells are expected to be turned over to production in late Q1 2026. This pad is targeting high-rate natural gas wells in the Lower and Upper Montney.
The Corporation is currently drilling its 6-well 04-05 pad, with completions operations scheduled to begin in Q2 2026. This pad is targeting high-rate natural gas wells in the Lower Montney. The wells are anticipated to be brought on production in Q2 2026.
Elmworth
The Corporation is currently drilling a horizontal land retention well that will not be completed this year. In addition, Birchcliff completed a horizontal land retention well in January 2026, which is undergoing a short flow test. As disclosed in the Corporation's press release dated January 20, 2026, this well is not currently planned to be tied in.
2025 YEAR-END RESERVES
Deloitte conducted an independent evaluation of the Corporation's reserves effective December 31, 2025 as contained in their report dated February 11, 2026 (the "Deloitte Report"). The forecast commodity prices, inflation and exchange rates utilized in the Deloitte Report were computed using the average of forecasts from Deloitte, McDaniel & Associates Consultants Ltd., GLJ Ltd. and Sproule ERCE effective January 1, 2026 (the "2025 Price Forecast").
The reserves data provided in this press release presents only a portion of the disclosure required under NI 51-101. The disclosure required under NI 51-101 will be contained in Birchcliff's annual information form for the year ended December 31, 2025, which is expected to be ...
