Birchcliff Energy (BIR) investor relations material

Executive summary

• Q2 2026 saw average production of 77,562 boe/d (84% natural gas, 16% liquids), impacted by a planned turnaround at the Pouce Coupe gas plant; current production is approximately 87,500 boe/d.

• Adjusted funds flow was $93.7 million ($0.34 per share), with net income to common shareholders of $12.8 million ($0.05 per share).

• The company updated its 2026 annual average production guidance to 83,000–84,000 boe/d, with Q4 2026 expected at 88,500 boe/d.

• Added Malin hub (Oregon) to its natural gas marketing portfolio, further diversifying market exposure.

• Paid a Q2 2026 dividend and repurchased 1.16 million shares for $15.1 million.

Financial highlights

• Q2 2026 petroleum and natural gas revenue was $177.5 million, up from $168.5 million in Q2 2025.

• Cash flow from operating activities was $100.9 million, down 8% year-over-year.

• Adjusted funds flow decreased 1% year-over-year; net income improved to $12.8 million from a $13.9 million loss in Q2 2025.

• F&D capital expenditures in Q2 2026 totaled $121.2 million.

• Total debt at June 30, 2026 was $469.9 million, a 10% decrease from the prior year.

Outlook and guidance

• 2026 annual average production guidance raised to 83,000–84,000 boe/d; Q4 2026 expected at 88,500 boe/d.

• F&D capital expenditures guidance tightened to $350–$375 million.

• Year-end 2026 total debt expected at $410–$435 million, with a total debt to adjusted funds flow ratio of ~0.9x.

• Free funds flow for 2026 forecasted at $80–$105 million.

• Sensitivity analysis shows free funds flow is most impacted by changes in AECO and Dawn prices.